HOUSING DEVELOPMENT IN SARAWAK SUNDAY, 26 OCTOBER ...

SARAWAK BUSINESS SUMMIT 2008 : Toward
Sustainable Development for Continued Prosperity
and Stability”
By
Affandi Bin Keli
Permanent Secretary
Ministry of Housing
Wednesday, 21 st January 2009

1.a. Introduction
Housing development sector is one of sector that contributed to the state
economic growth.
National Housing Policy – “To create a peaceful life and harmony community by
providing adequate affordable housing from the aspect of the needs, quality,
environmental friendly and equip with basic amenities in line with Vision 2020 to
ensure better quality living”
2008- Shows the demand has softened at the high end market. Developers are
more focused on the high-medium ranged market (less than RM300,000.00).
Oversupply of housing properties and lagging domestic demand have contributed
to stagnant prices.

1.b. Functions of Ministry of Housing Sarawak
1. To plan, monitor and evaluate public housing sector in particular on
houses for rent, low cost houses and affordable houses (Rumah Mesra
Rakyat).
2. To regulate and monitor private housing sector through the enforcement
of the Housing Developers (Control & Licensing) Ordinance, 1993 and
Housing Developers (Control & Licensing) Regulations, 1998.
a) Under Section 4 of the Ordinance, Permanent Secretary of Ministry
of Housing is the appointed by the Minister of Housing to be the
Controller of Housing
b) Under Section 5(1) and (3), developers intending to build approved
residential units of more than 8 numbers are required to have a
Housing Developer’s Licence issued by the Controller of Housing.
c) Under Regulation 5(1), developers intending to sell and advertise
their housing units after Building Plan Approval are required to apply
for Advertisement And Sale Permit issued by the Controller of
Housing.
3. To regulate and monitor sales of houses through standard Form G
(Landed Property) and Form H (Strata Title Property), Sale And
Purchase Agreement

1.b. Functions of Ministry of Housing Sarawak
4. Housing Developer Licence and Advertisement And Sale Permit
are issue based on year to year basis.
5. Payment of fees
Developers’ Licence
‣ Fees
- RM 500 – 9 to 20 units of houses
- RM 1,000 – 21 units of houses and above
‣ Plus RM100,000.00 Banker’s Guarantee in the name of
Controller of Housing.
Advertisement And Sale Permit
‣ Fees - RM 150 – 9 to 20 units of houses
- RM 250 – 21 units of houses and above
6. Developers are required to have a licence before any work
commence on ground.
7. Developer are required to have a valid licence up to year after the
issuance of Occupational Permit

2. Basic Economic Indicators
‣ Sarawak Population – 2.4 million (2007e)*
‣ No. of household – 480,000
‣ Urbanization - 2007 – approx. 50%
- (1970 – 20%)
‣ New housing requirement – 15,000 units per year**
‣ Sarawak GDP Growth Rate – 9.3% (2007a) (5.0% in 2008e)
(4.0% in 2009f)
‣ Construction Contribution to State GDP Growth – 3% (2008)*
‣ Percentage of employment in construction – 8.8% (114,000) of
the total 1.3 million workforce (2007)*
Note: * State Planning Unit
** Estimated by CH Williams Talhar Wong & Yeo
(a) actual (e) estimated (f) forecasted

3. a. Statistics of Housing Developer’s Licences Issued
2006-2008
Betong Bintulu Kapit Kuching Limbang Miri
2006 2 5 3 31 1 8
2007 5 13 0 112 5 30
2008 8 11 7 95 9 35
Total 15 29 10 238 15 73
Source: Ministry of Housing, Sarawak
For housing development of more than 8 units

3.b. Statistics of Housing Developer’s Licences Issued
2006-2008
Mukah
Samarahan Sarikei Sibu Sri Aman Total
2006 1 4 10 18 2 85
2007 4 26 16 69 10 290
2008 2 13 16 65 3 264
Total 7 43 42 152 15 639
Source: Ministry of Housing, Sarawak
For housing development of more than 8 units
Kuching has the highest number of licences issued : 238 licences or 37.2%
Sibu second highest at 152 licences or 23.78%
Kuching, Sibu and Miri collectively have 463 licences or 72.5%
Mukah registers lowest number of licences issued at 7 licences or 1%

4.a. Statistics of Advertisement & Sale Permits Issued
2006-2008
Betong Bintulu Kapit Kuching Limbang Miri
2006 3 7 3 43 1 7
2007 5 13 2 100 6 31
2008 5 9 5 73 7 31
Total 13 29 10 216 14 69
Source: Ministry of Housing, Sarawak
For housing development of more than 8 units

4.b. Statistics of Advertisement & Sale Permits Issued
2006-2008
Mukah Samarahan Sarikei Sibu Sri Aman Total
2006 1 9 13 27 2 116
2007 5 22 14 67 8 273
2008 1 12 14 52 0 209
Total 7 43 41 146 10 598
Source: Ministry of Housing, Sarawak
For housing development of more than 8 units
Highest is Kuching at 216 permits or 36.1%
Second highest is Sibu at 146 permits or 24.4%
Kuching, Sibu and Miri collectively have 431 permits or 72%
Lowest is Mukah at 7 permits or 1.17%

5.a. Statistics of Houses Built Under New Licences Issued
(2006-2008)
1 ½ Storey Terrace 17
1 ½ Storey Semi-Detached 8
2 Storey Shophouses
3 Storey Shophouses 44
4 Storey Apartment 110
Apartment
Detached Lot (Vacant Lot)
Kuching Sri Aman Sibu Miri Limbang Sarikei Kapit
Double Storey Detached 2 9 2
Double Storey Quadrant
Double Storey Semi-Detached 382 4 244 578 36 48
Double Storey Terrace 2207 7 1179 140 39 288 21
Single Storey Detached 26 2
Single Storey Semi-Detached 188 6 6 146 40 8
Single Storey Terrace 1841 39 66 995 44 4
Condominium 688
Single Storey Terrace Low Cost 743
Single Storey Terrace Low Cost Plus 744 32 50
Source: Ministry of Housing, Sarawak
Total 6862 56 1607 1894 195 336 83

5.b. Statistics of Houses Built Under New Licences Issued
(2006-2008)
Samarahan Bintulu Mukah Betong Total %
1 ½ Storey Terrace 16 33 0.25
1 ½ Storey Semi-Detached 20 28 0.21
2 Storey Shophouses - -
3 Storey Shophouses 44 0.34
4 Storey Apartment 1152 1262 9.7
Apartment 193 193 1.5
Detached Lot (Vacant Lot) - -
Double Storey Detached 6 19 0.15
Double Storey Quadrant - -
Double Storey Semi-Detached 18 44 8 24 1386 10.6
Double Storey Terrace 176 148 20 60 4285 32.8
Single Storey Detached 28 0.21
Single Storey Semi-Detached 40 4 12 450 3.44
Single Storey Terrace 613 46 38 71 2857 21.9
Condominium 688 5.3
Single Storey Terrace Low Cost 128 871 6.7
Single Storey Terrace Low Cost Plus 30 56 912 7
Source: Ministry of Housing, Sarawak
Total 2071 559 70 223 13056 100

5.c. Statistics of Houses by Building Type (2006-2008)
- Summary
i) Total number of house built in 2006-2008 is 13056 units.
ii) Average number of houses per year is 4352 units.
iii) Kuching has the highest number of houses built at 6862, while Samarahan
second highest at 2071 units and Miri the third highest at 1894 and followed
by Sibu at 1607 units.
iv) Sri Aman has the least number of houses built at 56 units.
v) Double and single storey terrace houses are the most built :7142 or 54.7%.
vi) Double storey detached are the least built:19 units or 0.15%.
vii) Apartment and condominium: at 881 or 6.8%.
viii) Low cost houses: 871 units or 6.7%.
ix) Low cost plus house: 912 unit or 7%.
x) Double storey semi-detached: 1386 units or 10.6%.
xi) Single storey semi-detached: 450 units or 3.44%.

6.a. Categories of Type of Houses According to Price
Price Range
(RM)
Type of House
Low Cost 42,000 to 47,000 Single Storey Terrace
Low Cost Plus 80,000 to 100,000 Single & Double Storey Terrace
Affordable House 50,000 to 60,000 Rumah Mesra Rakyat (Detached)
Low Medium Cost 110,000 to 180,000 Single & Double Storey Terrace
Medium Cost
181,000 to 300,000
Double Storey Terrace and Single Storey
Semi-Detached
High Medium Cost 301,000 to 400,000
High Cost More than 400,000
Double Storey Terrace, Double Storey
Semi-Detached, Single Storey Detached
and Condominium
Double Storey Semi-Detached, Double
Storey Detached and Condominium
Source: Ministry of Housing

7. Total Sales Statistics of Houses In Sarawak 2006-June
2008 (New And Renewal Licences Issued)
Year
No. of Units
to be
developed
No. of unit
sold
No. of unit
pending to be
sold
% unsold
2006 3989 2173 1816 46%
2007 8205 5908 2297 28%
2008 5975 3496 2475 41%
Total
18,169 or
6,056/year
11,577 or
3859/year
6588 or
2196/year
36.2%
Note:
Development of 8 units and below are not included
Source: Ministry of Housing, Sarawak
Average of the number of units to be built by private developer is 6,065
compare to 15,000 requirement per year.
Average of no. of units unsold = 36 % per year.

8.a. Unsold Houses Statistics For Kuching, Sibu & Miri For The
Year 2006-2008 (as at June) Source: Ministry of Housing, Sarawak
Year
Type of house
Number of Units To Be Developed Number of Units Unsold % of
Sub
Total
Kuching Sibu Miri
Sub
Total
Kuching Sibu Miri
Sub
Total
% of
Total
Semi-Detached Double Storey 745 354 286 1385 387 137 182 706 51 8.5
Semi- Detached Single Storey 340 32 324 696 144 13 52 209 30 2.5
Terrace Double Storey 1177 1539 262 2978 557 619 171 1347 45.2 16.3
2006
Terrace Single Storey 955 861 482 2298 391 292 223 906 39.4 39.4
Detached Double Storey 26 10 15 51 18 7 1 26 51 0.3
Detached Single Storey - 11 3 14 - 5 - 5 36 0.06
Apartment/Condominium 840 - - 840 66 - - 66 7.9 0.8
Total 4083 2807 1372 8262 1563 1073 629 3265 39.5
Semi-Detached Double Storey 523 922 446 1891 319 283 165 767 40.6 6.12
Semi- Detached Single Storey 300 104 531 935 144 24 145 313 33.5 2.5
Terrace Double Storey 1324 1904 860 4088 646 546 507 1699 41.5 13.
2007
Terrace Single Storey 735 2258 1034 4027 352 555 226 1133 28.1 9.04
Detached Double Storey 4 21 59 84 2 12 20 34 40.5 0.3
Detached Single Storey 8 11 69 78 7 6 17 30 38.4 0.24
Apartment/Condominium 1426 - - 1426 138 - - 138 9.67 1.1
Total 4320 5220 2999 12529 1608 1426 1080 4114 32.8

8.b. Unsold Houses Statistics For Kuching, Sibu & Miri For The
Year 2006-2008 (as at June)
Source: Ministry of Housing, Sarawak
Year Type of house Number of Units To Be Developed Number of Units Unsold % of
Sub
Total
Kuching Sibu Miri Sub
Total
Kuching Sibu Miri Sub
Total
2008 Semi-Detached Double Storey 202 244 280 726 136 96 94 326 45 6.92
Analysis
Semi- Detached Single Storey 135 14 117 266 42 6 33 81 30.4 1.72
Terrace Double Storey 543 697 363 1603 241 231 134 606 37.8 12.9
Terrace Single Storey 486 692 208 1386 110 229 49 388 28 8.3
Detached Double Storey 4 11 21 36 3 8 6 17 47.2 0.4
Detached Single Storey 7 2 11 20 7 2 10 19 95 0.4
Apartment/Condominium 668 - - 668 605 - - 605 90.5 12.9
Total 2045 1660 1000 4705 1144 572 326 2042 43.4
1. In 2006, 39.5% units are unsold. 51% of Semi-detached Double Storey and Detached Double
Storey are unsold and only 7.9% of Apartment/Condominium are unsold.
2. In 2007, 32.8% units are unsold. 40.6% of Semi-detached Double Storey are unsold and 9.67% of
Apartment/Condominium are unsold.
3. In 2008, 43.4% units are unsold. 95% of Detached Single Storey are unsold and only28% of
terrace single storey unsold.
% of
Total

9. Government Policy Towards Housing
Development In Sarawak
i. Density Control
• Low-cost housing – 12 units per acre
• Normal housing- 8 units per acre
• Strata-title housing – 24 units per acre
ii. Houses built on Native Land can only be purchased by the natives of
Sarawak.
iii. Non-native can only buy houses built on a Mixed Zone Land.
iv. Foreigners can buy house on a Mixed Zone Land at more than RM300,000
per unit in the Malaysia My Second Home Program.
v. It is possible to convert Native Land to Mixed Zone upon approval of subdivision
of land subject that 30% been reserved for the natives of Sarawak..
vi. For any development of more than 10 acres of land, 30% of the
development will be allocated for low-cost houses which are to be sold at
RM40,000 to RM47,000 per unit.

Qualification To Purchase Low Cost House
No. Item Criteria
1 Nationality Malaysian domiciled in Sarawak.
2 Income Family income betweenRM650.00 to RM2,500 per month.
3 Age 16- 65 years old.
4 Marital Status Married,
5 Economic Status No house or landed property ownership
6 Particular of Loans Period of loan can extend up to 30 years.
7 Other condition Purchaser can buy once in a life time

10. Trends In Housing Industry
1. Over Supply???
‣ Estimated yearly requirement - 15000 units
‣ Average yearly incoming stock - 7000 units
‣ Average unsold units - 35%
2. Low-Cost Housing
‣ Change from 2 to 3 bedrooms.
‣ Change from 475sq ft to 600sq ft.
‣ Generational loan - 30 years.
‣ Non-fixed income earners – Government provide
collateral to bank.

10. Trends In Housing Industry
3. Factors influencing purchase of house
‣ House Price
‣ Affordability
‣ Credit Limit
‣ Credit accessibility
‣ Bank charges/loan interest
‣ Location
‣ Flood free area
‣ Crime free area
‣ Less traffic congestion
‣ Design
‣ Personnel preferences
‣ Lifestyle
‣ Gated community
‣ Theme Park Housing

10. Trends In Housing Industry
4. Challenges to the Developers
‣ To identify diverse need of buyers.
‣ Keeping cost down
‣ Giving competitive price by not effecting the margin.
‣ Use of new technology to cut cost and wastage as well
as shorten construction price.
‣ Policy to reduce foreign workers

11. Outlook
1. Demand for sale of houses dropped in 2008 compared to 2007.
2. According to bank sources, sale will drop further in 2009.
3. BLR drop by 25 BP to 6.5% in the last 2 month (6.5% in
November 2008)
4. The rate can drop further between 25 to 50 BP soon.
5. Despite drop in oil prices, the price of raw material has so far
remain the same as in July 2008.
6. Price of houses has gone up in 2008 in view of the increase of
price of building material. So far in 2009, there has been no drop
in price yet.
7. For the time been, the sale and built concept still remain.
8. In 2008 the Government announced RM7 million stimulus
package, out of which RM1.4 million was allocated for the
housing sector. The package would contributed 1% GDP growth.
It is slightly the Government might launched 2nd phase in order
to boost the economic growth.

Thank you