1.sbq4424 - market study

8/10/2019 1.SBQ4424 - Market Study

1/33

ABDUL KHAALIQ KAMUNRI

SX110141BQS11


2/33

CONTENT

1. 0 Property Market Study

1.1 Introduction to Market Study

1.2 Socioeconomic Profile

1.2.1 Population and Household Composition

1.2.2 Households Income

1.2.3 Employment

1.2.4 Economic Overview

1.2.4.1 Malaysia

1.2.4.2 Sabah

1.2.4.3 Tawau

1.2.5 Malaysia 2015 Budget

1.2.5.1 Sabah States 2015 Budget

1.2.5.2 Government Incentives for Residential Property

1.3 Housing Profile

1.3.1 Malaysia Property Market

1.3.2 Malaysia Property Outlook 2014

1.3.3 Property Stock Report

1.3.3.1 Supply of Residential Units in Malaysia

1.3.3.2 Supply of Residential Units in Sabah

1.3.4 Property Market Status

1.3.4.1 New Launches

1.3.4.2 Property Overhang

1.3.4.3 Unsold Not Constructed

1.3.4.4 Sabahs Property Market Status

1.3.5 Housing Supply and Demand

1.3.6 Market Competitor


3/33

1.1. Introduction to Market Study

The purpose of this study is to identify the existing and future housing needs of

residents in Tawau. This study focus on the needs of three residents groups which is

middle income residents, families and workforce. To complete this property market study,

we use the most recent data and information on resident demographic, housing price and

future growth trends. This study will be devided into two categories which comprise the

socioeconomic profile and housing profile of the study area.

1.2 Socioeconomic Profile

This chapter will explain about the socioeconomic for the local community at this

time. In addition, the analysis will be conducted on the population density, the

relationship between the total population and current economic conditions that determine

household income and the financial ability of the population, especially in the study area.

Data from this study were collected from government agencies and through critical

observations to obtain information relevent to this study.

1.2.1 Population and Household Composition

In 2010, Malaysias population is 28.3 million and is projected to increase by 35%

to 38.6 million in 2040. Sabah is the second largest state in Malaysia after Sarawak. The

land area is equal to the combined land of several states in Peninsular or equivalent to

60% of area in Peninsular Malaysia. Sabah also the the second most populous state after


4/33


5/33

Figure 1.1 : Ethnic Breakdown for Tawau District (Source : Cencus, 2010).

Figure 1.2 shows the population density of Tawau district. Tawau town and

neighboring area are the most dense area within the city with average densities around

1001-100,000 person per square kilometres. Population density for the proposed site is

about 101-1000 person per kilometres, which allows for more residential and mix

development.

Figure 1.2 : Population Density of Tawau District

Source: Town and Regional Planning Department, Sabah

Ethnic Breakdown

Malay

Chinese

Indian

Others

Non-Citizen

59.0%

10.0%

0.2%

1.5%

29.3%


6/33

1.2.2 Household Income

Generally, the findings of the Household Income Survey (HIS) 2012 revealed that

the mean monthly income for Malaysians increased to RM 5,000.0 in year of 2012. It was

an increase of 7.2% per annum. According to Statistic Department Malaysia, household

income for Sabah in 2012 was RM 4,013 with an average annual growth rate for 2009 -

2012 period was 8.6% (Figure 1.3). The income growth rate for Sabah was above the

national average growth rate of 7.2%. Meanwhile the overal poverty rate has also

continued to decline from 19.7% in year 2009 to 8.1% in year 2012.

Figure 1.3 : Mean Montly Household Income and Annual Growth Rate 2012

Source: HIS 2012, Statistic Department Malaysia.


7/33

Figure 1.4 : Incidence of Poverty and Hardcore Poverty by State, Malaysia

Source : Household Income and Basic Amenities Survey Report (2012)

1.2.3 Employment

Agriculture is the major economic activity of the area which is planted mainly

with oil palm, rubber trees, cocoa and fruit orchads. In recent years, agriculture has

replaced timber as Tawausmain source of income. However, among the people who live

in the surrounding areas, there are also other occupational groups such as government

servants, drivers, clerical workers and people doing own business. Non-working groups

comprising housewifes, unemployed individuals and pensioners and small number in

various other jobs.


8/33

Figure 1.5 : Distribution of Employed Persons by Industry, Sabah (1980-2006)

Source : Yearbook of Statistics, Sabah (2006)

Socio-economic indicators released by the Statistic Department in 2011 showed

labour force participation rates were high for the state of Sabah with total sum of 67% in

which surpassed the average labor force participation rates of the country. This was an

increase of approximately 41,800 jobs in 2012. Unemployment rate also decreasing in

2012 to 5.4% compared to 5.6% in 2011. Unemployment rates has been lower than the

Malaysia average as a whole. In terms of gender, male comprise 85.8% while female

comprise 46.2%. Figure 1.5 shows the percentage distribution of employed persons by

occupation for Sabah.

New vacancies reported by state and industry 2012 released by the Ministy of

Human Resources shows that 190,307 vacancies available for the state of Sabah in which

143,657 vacancies are for the agriculture, foresty and fishery. According to the Sabah

Development Corridor (SDC) planning, Tawau District was designated as agro-marine

belt that focused on marine integrated cluster and palm oil industrial cluster (POIC) which

opens to the high employment to people of Tawau. Job growth in the exterior portions of

the city will be associated with population growth as retail and service opportunities

follow residential development.


9/33

Figure 1.6 : Employment Indicators in Sabah (2008-2012)

Source: Cencus, 2012

Table 1.2 : Distribution of Employed Persons by Occupation in Sabah

No. Type of Occupation Percentage distribution of employed

persons by occupation (%)

1 Managers 9.4

2 Professionals 7.5

3 Technicians and associate professionals 6.0

4 Clerical support workers 9.9

5 Service and safe workers 10.4

6 Skilled agricultural, foresty and fishery 27.9

7 Craft and related 9.1

8 Plant and machine operators 8.5

9 Elementary occupations 13.5

Source: State / District Data Bank Malaysia, 2012


10/33

1.2.4 Economic Overview

1.2.4.1 Malaysia

The Malaysian economy has been making commendable progress with strong

growth of Gross Domestic Product (GDP) which rose to 6.4% in the second quarter of

2014. Manufacturing and Services continued to drive the supply side coupled with a

sturdy pace in Agriculture as shown in Figure 1.7. The GDP growth this year will

probably exceeds the central banks forecast range of 4.5% to 5.5%. Malaysian economy

grew supprisingly because it was supported by continued robust aggregate domestic

demand and strong external demand with low unemployment and managable inflation.

The acceleration of Net Exports has increased to 8.8% while steady growth in

Private Final Consumption Expenditure to 6.5%. Export and imports for third quarter of

2014 increased by 2.0% to reach RM64.5 billion. Export grew 8.6% for the period of

January to September from RM524.5 billion previously. The trade surplus also increased

to RM 61.6 billion compared to RM 43.0 billion last year. Overall, the Malaysian

economy is expected to remain healthy and strong in 2015 as its growth will continue to

be driven by domestic and external sources.

Figure 1.7 : Malaysian Economic Growth Rate Q2 2014


11/33

1.2.4.2 Sabah

Sabah economic agenda focus on three thrust sectors namely Agriculture, Tourism

and Manufacturing. According to Statistic Deparment, Sabah has been recording strong

economic growth which grew from 1.3% in year 2011 to 4.1% in year 2012. The biggest

contributor sub-sector was the services, agriculture, mining and quarrying, manufacturing

and construction. A growth was supported by mega projects such as entry point project

(EPP) which generate increament of gross national income and new jobs.

Sabah Econonomic Development Investment Authority (SEDIA), the responsible

authority for planning, coordinating, promoting and accelerating the development of

Sabah Development Corridor (SDC) has attracted many foreign investors to Sabah. Major

projects that has been implemented to drive the state economy include the palm oil

industrial cluster (POIC), Sabah Oil and Gast Terminal (SOGT), Keningau Integrated

Livestock Centre, Sandakan Education Hub, the Oil and Natural Gas Cluster (O&G), the

Marine Industry Integrated Cluster, Sabah Ammonia-Urea Complex and Kinabalu Gold

Coast Enclave. Total investment value is RM 128 billion from 2008 to first quarter of

2014.

Table 1.3 : Comparison of Malaysia and Sabah GDP 2008-2014

Source : Statistic Department

Year Malaysia

(%)

Sabah

(%)

2008 4.8 10.7

2009 -1.5 4.8

2010 7.4 2.7

2011 5.1 1.3

2012 5.6 4.1

2013 4.7 n.a

2014 6.4 (Q2/2014) n.a


12/33

Figure 1.8 : Sabah Development Corridor Plan

1.2.4.3 Tawau

Tawau community has greatly been enhanced with the development and

introduction of other infrastructural amenities in the region. The rapid development in the

diverse economy of Tawau from agriculture, timber, shipping, agro-industry and

commercial developments have attracted many people in this region. In addition, the

manufacturing sector has also grown rapidly in the area which saw the development of

some major industrial areas in Tawau such as Tanjung Batu Industrial Area and Pasir

Putih Industrial Area.

Figure 1.9 : Development Growth Direction of the Study Area


13/33

1.2.5 Malaysia 2015 Budget

Malaysias 2015 budget was presented by the Prime Minister Dato Sri Mohd

Najib Razak in the Dewan Rakyat. This budget shows a responsive government to rising

cost of living and ensuring 2014 economic momentum is sustained. The 2015 budget will

allocates a total of RM273.9 billion to two types of expenditure, namely Operating

Expenditure and Development Expenditure. Of the amount, RM223.4 billion will be used

for Operating Expenses while the remaining RM50.5 billion will be used for

Development Expenditure. Malaysia 2015 budget breakdown is shown as follows.

Figure 1.10 : Summary of 2015 Budget Allocation

Table 1.4 : 2015 List of Expenditure

Operating Expenditure

(RM) Billion

Development Expenditure

(RM) Billion

Fixed Charges & Grants 116.4 Economic Sector 29.3Emoluments 65.6 Social Sector 12.6

Supplies & Services 38.1 Security Sector 4.9

Purchase of Assets 1.5 Contigencies 2

Others 1.8 General Administration 1.7

Total 223.4 Total 50.5

Source : The 2015 Budget Speech, BNM

Operating

Expenditure,

223.4

Development

Expenditure,

50.5


14/33

1.2.5.1 Sabah States 2015 Budget

Chief Minister (CM) of Sabah has tabling the budget of the state for year 2015 at

the State Assembly. Sabah will receive RM4.07 billion from the 2015 Federal budget as

announced by the Prime Minister to implement various projects in Sabah. The state

government will only spend 3,812.79 million for 2015 which create a surplus amounting

to RM49.23 million.

According to CM, development of Sabah will be focusing on sectors that could

uplift peoples prosperity. For that reason, RM 1,882.15 million will be allocated for

Operating Expenditure and the remaining RM 1,1930.64 will be allocated for Special

Expenditure.

Development Expenditure for the year of 2014 involves a sum of RM 1,308.55

million consisting of RM746.84 million of state fund and RM561.71 million contribution

from the Federal Government. A total of RM1.25 bilion is allocated to the infrastructures

and public utilities such as the building and maintenance of urban and rural roads, slopes,

bridges and traffic and road safety management.

Figure 1.11 : Distribution of the 2015 State Development Fund

Economics,

455.39

Social,

229.61

Administration,

56.84 Contigency, 5


15/33

Figure 1.12 : Distribution of The 2015 Supply and Development Allocation by

Ministries

1.2.5.2 Government Incentives for Residential Property Market

The Government has undertaken continuous efforts to address the difficulties of

the middle income and low income group in owning an affordable house. A total of

RM1.9 billion was allocated in 2013, RM1.724 billion in 2014 and RM1.3 billion in 2015

to assist the construction of 123,000 units (2013), 133,000 units (2014) and 143,000 units

(2015) of affordable housing by government agencies such as Perumahan Rakyat

1Malaysia (PR1MA), Syarikat Perumahan Negara (SPNB) and National Housing

Department (JPN). The private sectors also expected to built 90,000 units affordable

house this year.


16/33

In 2014, Pr1ma focus on providing affordable house to the middle income groups

nationwide. Pri1ma has planning to build 80,000 units of affordable house with an

allocation of RM 1.0 billion. 30,000 units will be built in collaboration with private

developers and each unit will be sold at a price of RM100,000 to RM 400,000. JPN will

built 17,473 residential units with an allocation of RM724 million. However, the numbers

of residential units to be build by JPN increased to 26,000 units in the 2015 budget with

an allocation of RM 644 million.

SPNB focus on providing affordable housing particularly for lower income

groups. RM 320 million was allocated to build 26,885 residential units including 1855

medium-cost apartments in 2013 but the number of units to be build in 2014 dropped to

26,122 comprising of 15,122 affordable houses, 3000 units Rumah Idaman Rakyat and

8,000 units of Rumah Mesra Rakyat. Subsidy RM 30,000 per unit will be provided for

Rumah Mesra Rakyat.

Civil servants will benefit through 1Malaysia Civil Servant Scheme in which the

government will add housing units to be built throughout the country including the

addition of 1290 units in Papar. In addition, the minimum eligibility limit will be

increased up to RM600,000 compared to RM80,000 to RM120,000 previously.

Developers who participate in the providing of affordable housing schemes eligible for

facilitation fund up to 25% of project cost.

The government also launch a housing incentives starting from 2013 to encourage

private developers to build more affordable housing through MyHome Scheme. My First

Home Scheme was launched to asist young adults to own their first house. The conditions

of this scheme has further eased by the government which improvement was made to the

limit of monthly income from RM 3,000 and below previously to RM 5,000 or joint

income of up to RM 10,000. The 50% reduction of stamp-duty exempt will also be extend

until the end of 2016.


17/33


18/33

1.3.1 Malaysia Property Market

Altough GDP in 2013 was at a moderate level, growing only by 4.7% in 2013 but

in the third quarter of 2014 economic growth reached 6.4%, the highest GDP since 2011.

Overall economic growth was led by the services and manufacturing sectors each

contributed 55.2% and 24.5% of GDP. Domestic demand remains positive with 7.6%

compared with 10.6% in 2012 driven by continued growth in household spending and

business and public sector expenditure.

According to Valuation and Property Services Department (JPPH), the growth of

the property market in 2013 has increased moderately. This sector has suffered a drop of

the number of transactions in 2013 compared to previous year. Despite the number of

transactions decreased to 381,130 but the transaction value is increased by 6.7% or

RM152.37 billion compared to 427,520 transactions worth RM142.84 billion in 2012.

The sales performance is moderate in which the number of units launched

decreased by 14.9%. Performance of unsold units decreased because of decreasing in total

numbers of residential units from 15,091 in 2012 to 13,547 units in 2013. Residential sub-

sector continued to lead the real estate market activity taking 64.6% share. The low base

landing rate (BLR) of 6.53% and the weighted average lending rate (ALR) to 5.4%

continue to support the domestic property market. Housing approvals also decreased from

47.4% in 2012 to 22.5% in 2013. However, the number of loans issued for the purchase of

residential property showed an increase of RM10.3 billion this year.

The commercial sector declined by a lesser amount this year by 34,289

transactions worth RM35.56 billion. Industrial property transaction this year fell 15.7%

after a contraction of 4.7% in 2012. Similarly, agriculture transactions value also declined

7.0% from RM14.29 billion last year to RM13.28 billion. In conclusion, the real estate

market acitivity is slow as a whole in 2013 with all sub-sectors recorded a decrease in the


19/33

number of transactions. However, the value of transactions for all sub-sectors rose but in a

lower rate.

1.3.2 Malaysia Property Outlook For 2014

In order to ensure economy continues to grow, Budget 2014 has been drafted to

implement various programs and projects to boost economy as a whole. Private

investment expected to grow supported by the implementation of Economic

Transformation Programme (ETP) worth of RM1.4 trillion such as investment in oil and

gas, agriculture, tourism, and construction sector is expected to increase private

investment activity. Other infrastructure work including allocation of RM980 million for

the rehabilitation and upgrading of 437KM rural roads and RM 500 million for the Pan-

Borneo Highway project.

1.3.3 Property Stock Report 2014

1.3.3.1 Supply of Residential Units in Malaysia

Figure 1.13 : Completion, New Planned Supply and Start of Residential Property

From Q2 2013 to Q2 2014 in Malaysia

Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014

Completions 19.439 23.843 13.917 25.061 16.480

New Planned Supply 35.680 45.019 33.859 44.743 51.372

Starts 33.542 39.318 31.279 31.759 38.587

0.000

10.000

20.00030.000

40.000

50.000

60.000

TotalU

nits

Summary of Residential Property Stock in Malaysia


20/33

There were 4,769,328 of residential units available in Malaysia at the end of Q2

2014, 72,074 unit increase over the second quarter of 2013. During Q2 2014, residential

unit completed declined to 16,480 compared to 25,061 units in previos quarter (Q1/2014).

However, the incoming supply grew 8.6% in Q2 this year compared to the same quarter

last year (Q2/2013). So far, 686,902 residential units are under construction in which

there is an increase 15,279 in the last three months. For the new planned supply, Q4 2013

recorded the lowest (33,859) but increased in Q1 2014 (44,743) and Q2 2014 (51,372).

1.3.3.2 Supply of Residential Units in Sabah

Figure 1.14 : Completion, New Planned Supply and Start of Residential Property

From Q2 2013Q2 2014 in Sabah

Sabah has existing stock of 157, 421 as at Q2 2014, a slight increase compared to

earlier quarter with an average of 1,586 units per quarter. However, the number of unit

completed within a period of one year only 1,590 units were completed during Q2 2013

and Q2 2014 respectively, with 512 and 1,078 units. Incoming supply slightly increased

by 45,879 units to date compared to the same quarter last year was only 39,447 units. But

Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014

Completions 512 0 0 1078 0

New Planned Supply 0 55 898 899 1706

Starts 24 1746 3594 82 3525

0

500

1000

1500

2000

2500

3000

3500

4000

TotalUnits

Summary of Residential Property Stock In Sabah


21/33

the incoming supply is expected to increase due to the residential units under construction

in Q2 2014 stood at 42,354 units, while the new planned supply was 1,706 units and starts

3,525 units.

A summary of the existing stock, completion, incoming supply, starts and planned

supply for the study area as of second quarter 2014 are listed in Table 1.6.

Table 1.6 : Supply of Residential Units in Tawau

Year/SupplyExisting

Stock

Completion Incoming

Supply

Under

Construction

Starts Planned

Supply

Q2 2013 19,366 0 4,070 4,046 24 702

Q3 2013 19,366 0 4,070 4,070 0 757

Q4 2013 19,366 0 4,070 4,070 0 757

Q1 2014 19,437 0 4,060 4,060 0 793

Q2 2014 19,437 0 4,060 4,060 0 793

Source : NAPIC, Residential Property Stock (Q2/2013Q2/2014)

1.3.4 Property Market Status Q1/2014

1.3.4.1 New Launches

Figure 1.15 : Source; Property Market Status Q1 2014, Napic


22/33

Statistics show that as of the end of Q1 2014, a total of 65,758 new resident units

have been launched throughout the country since Q1 2013 to Q1 2014. In Q1 2014, the

developer has provided a total of 6,339 units compared to 17,836 units in the same quarter

last year. This amount is very low, a decrease of 49.7% compared to units launched in the

last three months. Units sold showed that Q1 2013 is the highest number of 5,087 units,

followed by Q2 2013 (3,322 units), Q3 2013 (1,959 units), Q4 2013 (2,007 units) and Q1

2014 (1,891 units). However sales performance during Q1 2014 was the highest

compared to the past four quarters.

In terms of residential property launched by type, terrace houses contributed the

highest amount (15,085 units) followed by service apartment (6,309 units) condominium

and apartment (5,716 units), 2-3 storey semi detached (2,493 units) and cluster (2,021

units). Terraced house also has a very good demand with higher sales volume by 6,853 of

units sold. In addition, the high-rise properties also have a good sales with a total 3,272

units. Summary of units launched, units sold and sales performance by type of residential

property is shown below.

Figure 1.16 : Summary of Launched and Sold Units and Sales Performance by

Types


23/33

1.3.4.2 Property Overhang

Figure 1.17 : Source: Property Market Status Q1 2014, NAPIC

The number and value of completed units which remained unsold after nine

months launching in Q1 2014 increased from 17,848 units to 18,682 units (4.45%) and

from RM 6,073.40 million to RM 6,446.91 (5.69%) compared to previous quarter. These

overhang units comprised of residential property (13,503 units & RM 4,803.62 million),

shops property (4,785 units & RM 1,471.77 million) and industrial property (394 units

and RM 171.52 million). Residential property represent the highest number of property

overhang in Q1 2014 with 13,503 units, followed by shops property (4,785 units) and

industrial property (394 units). Although the number of property overhang in Q1 2013

was higher than other quarters, but the values is lower than Q1 2014.


24/33

1.3.4.3 Unsold Not Constructed

Figure 1.18 : Unsold Not Constructed Propertys by Sub-sectors (Q1/2013-Q1/2014)

Numbers of units unsold not constructed decreased by 6.3% from 15,690 (Q4

2013) to 14,700 (Q1 2014). Performance for residential and shops property are also good

compared to previous quarter with a decreased in numbers of unsold units by 4.7% (640

units) and 20.7% (372 units) respectively. Industrial sub-sectors showed an increase of

8.5% unsold units to 292 units. Analysis of year-on-year from Q1 2013 to Q1 2014

showed a slight decrease for all sub-sectors. The residential sub-sector declining 1.02%

from 13,129 units, shops 4.04% from 1,483 and industrial 18.26% from 345 units.


25/33


26/33

Figure 1.20 : Sales Performance of Selected Newly Launched Houses from Q3/2013-

Q1/2014

Statistics provided by NAPIC shows a total of 1,837 new residential units

launched in Sabah from Q3 2013 until the end of Q1 2014. There are two types of houses

launched and sold in Sabah. By property type, condominium/apartment which was

launched since 9 months ago was the highest at 66% (1,203 units) of total supply, while

the remainder is a landed property (634 units). However, landed property have a higher

number of units sold and sales performance despite less offered by developers. Units sold

and sales performance for landed property comprising of 447 units and 70.5%, while for

high-rise property 310 units and 25.8% respectively.


27/33

1.3.5 Housing Supply and Demand

Supply refers to a developers who create new product in the industry while the end

user such as owner or renter will form a demand. The demand on the residential property

always increases every year. The main determinants of demand of residential property are

the population and households income because the more people in the economy, the

greater the demand in this industry.

Construction of a property involves the use of various resources such as labor,

construction material, financial and expertise of the project team. All input in construction

will determine the price of the property. By analyzing sales performance, existing supply,

current approval of property development in specific area and so on can help developers

to make decisions about the type of supplies that will be offered and determine a

reasonable price of the property. Factors that influence both supply and demand in this

industry have been discussed in detail previously.

The residential industry makes up an important part of Malaysian economy. There

was a significant increase recorded in the percentage of flats, apartments and

condominiums from 12.6% in 2000 to 19.9% in 2010 (Cencus, 2010). It happens because

of the rising land cost and the scarcity of feasible land resulted in the increasing of

apartment and condominium development over the years. The growing trend in

developing apartments in Sabah can be affirmed with recent launches in the year of 2013

and 2014.

According to Sabah Housing and Residential Developers Association

(SHAREDA), their members producing a total Gross Development Value (GDV) of RM

7.56 billion in 2013. High-rise development contribute RM 2.056 billion from the total

GDV which is the construction of 6804 units of condominium and apartments, landed

property 4421 units (RM1.85 billion) and mixed development 2014 units (RM2.006


28/33

billion). Figure 1.21 shows that landed and condominium/apartment property led the

housing development in Sabah. However, according to NAPIC Tawau division not

producing any apartment/condominium development in 2013.

Figure 1.21 : Sabah Property Development Products in 2013

Source: SHAREDA Property Development Annual Report (2013)

Table 1.7 : Total Unit of Residential Unit Built by SHAREDA Members in 2013

No Regions Condominium and

Apartment

Landed

Property

Total GDV

GDV (RM)

000000Unit

GDV(RM)

000000Unit

RM

000000

1 West Coast 1,651 4692 830.878 1,555 2,481.878

2 Lahad Datu 85 320 173 336 258

3 Interior Region - - 267.9 1,087 267.9

4 Tawau - - 412.4 1,037 412.4

5 Sandakan 250 1440 141 406 391

6 Kudat 70 352 - - 70

TOTAL 2,056 6,804 1,825.178 4,421 3,881.178

Source; SHAREDA Property Development Annual Report (2013)


29/33

Table 1.8 : Summary of Tawaus Property Stock

No Type of

Property/Pro

perty StockExisting

Stock

Com

pletion

Incoming

S

upply

U

nder

Con

struction

S

tarts

Planned

S

upply

New

Planned

S

upply

1Single Storey

Terrace2,975 0 1,337 1,337 0 622 0

22-3 Storey

Terrace5,023 0 850 850 0 87 0

3Single Storey

Semi-D382 0 12 12 0 0 0

42-3 Storey

Semi-D2,862 0 372 372 0 26 0

5 Detach 2,046 0 41 41 0 58 0

6 Cluester 572 0 0 0 0 0 0

7

Low Cost

House 2,730 0 528 528 0 0 0

8 Low Cost Flat 2,577 0 0 0 0 0 0

9 Flat 48 0 900 900 0 0 0

10Service

Apartment0 0 0 0 0 0 0

11Condominium/

Apartment222 0 20 20 0 0 0

Total 19,437 0 4,060 4,060 0 793 0

Source : NAPIC Property Stock Report, Q2 2014


30/33

There are several estimates of the number of residential units in Tawau. According

to the Property Stock Report published by NAPIC, Tawau have existing stock amounted

to 19,437 units of residential property available as of Q2 2014. Landed properties

represent 16,590 or 85% of the exisiting stock in the residential market while the

remainder was comprised of 2,799 units (15%) of high-rise property. Besides that, only

4,060 residential units is under construction and new units launched as shown in table 1.8.

1.3.6 Market Competitor

As reported by SHAREDA, local developers have started planning for the

construction of more landed and high-rise properties in Tawau for 2014 to 2018 period.

Two types of residential properties to be built is terrace and apartment totaled 3,267 units.

Table 1.9 shows the project name and number of units that will be built by other

developers.

Location is among the most important factors in the development of property

whether it is residential, industry or other types of property. Good location can attract

prospective buyers as sites near the city center, the infrastructure available in the location

and good surrounding.

Generally, the existing location proposed by Karun Developer is very strategic

because it is located just 6KM from the city center and 4KM from the new township.

Location of the nearest competitors site is 15KM from the city center, while the most

distant location is 45KM which is located in the Balung area. Figure 1.22 shows the

location to be developed by other competitors.


31/33

Table 1.9 : Planned Supply in Tawau by SHAREDA Members

No. Project Name Property Type Project Status No. of Uni ts

1. Taman Sawit Phase 3a Terrace DP approved by

local authority

91

2 Ria Heights (Phase1) Terrace DP submitted to

Central Board

469

3 Ria Heights

(Phase 2)

Terrace Design

Development Stage

161

4 Proposed 194 units, Mile 8

Jalan Apas

Terrace DP sumbitted to

Central Board

194

5 Bandar Sri Indah Affordable

Housing (Phase 1)

4-Storey

Apartment

Design

Development Stage

256

6 Bandar Sri Indah Affordable

Housing (Phase 2)

4-Storey

Apartment

Design

Development Stage

816

7 Ria Heights Apartment Design

Development Stage

1024

8 Taman Sawit Phase 4a 4-Storey

Apartment

DP approved by

local authority

256

Total 3,267

Source : SHAREDA 2013 Property Development Annual Report


32/33

Figure 1.22 : Competitors Site


33/33

1.sbq4424 - market study

Documents