Developer sees potential glut in property market

Datuk Lau Siu Wai

MIRI: Sarawak could find itself in a property glut if developers continue to build projects at current rates.

Miri Housing Group of Companies chief executive officer Datuk Lau Siu Wai said the current inventory of property development in the state would require five to eight years to find sufficient demand.

“In other words, if you build more, you are making the market worse. For example, shop houses in Miri alone are in excess of more than 1,000 units plus the shop houses already approved but not built yet, it is going to be about 2,000 so it takes some time to digest.

“I would not mind saying that anyone trying to build more shop houses will be in trouble,” Lau told The Borneo Post yesterday.

Lau, who is also Meritz Hotel Group chairman, said take-up for houses priced above RM300,000 is slow at present, but those priced below RM200,000 are still saleable.

“If you want to buy a house of more than RM300,000, unless

your income is more than

RM10,000 that should be fine, but not many people have such income.

“Many people can’t commit to paying the housing loan because they have other loans like cars and some are even getting loans to buy furniture, so if you can’t commit, then how can you expect the bank to lend you the money?” he pointed out.

“Too many people are spending money before they have earned it.”