Oil fuelling up Miri mart boomMarch 1, 2018 @ 11:02AM
By Sharen Kaur
The Miri property market has remained positive due to the robust oil and gas sector.
Miri is also benefiting from spin-off generated from developments within Sarawak Corridor of Renewable Energy (SCORE). This includes the development of the Pan Borneo Highway.
Prime Minister Datuk Seri Najib Razak has said that the Pan Borneo Highway is not just a catalyst for economic growth, but a game-changer that would bring huge transformation to Sarawak.
The highway project is expected to create an eightfold multiplier effect on the state’s economy with the property sector expected to be one of the biggest beneficiaries.
Bandar Baru Permyjaya is one of the fastest growing satellite towns in Sarawak and it is building up in anticipation of future demand.
The development by Naim Land Sdn Bhd, a wholly-owned subsidiary of Naim Holdings Bhd, started in 1995 spanning over 1,214ha of land.
To date, the company has built over 17,000 units of residential, commercial and industrial properties in the development.
Spanning over 182ha in the township is the affluent SouthLake Permyjaya lakeside enclave.
SouthLake is the crËme de la crËme of Bandar Baru Permyjaya. It has a total of 12 precincts, master-planned based on an appreciation for the environment, security and healthy community living. Its main feature is a 12.14ha lake.
Naim launched the single-storey Naim Primrose Terraces and single-storey semi-detached Naim Eden Villas in South Lake Permyjaya last month with an overwhelming response.
OUTLOOK FOR 2018
In general, the property market this year is expected to remain stable, says Henry Butcher Malaysia (Miri).
The property consulting services firm said that residential properties, for example the low- and medium-cost housing projects, are still the priority for Miri due to good market demand.
“Retail business in Miri is a positive indicator of growth as Miri has begun profiting from tourism. Due to Malaysia’s weaker currency, Miri has become a major shopping destination for neighbouring countries and also foreigners.
“We note that there are more commercial and residential properties that have been converted to hotels, motels, homestays, lodging houses and inns to cater to the increase of tourists to Miri,” it said.
However, the firm says the commercial properties in Miri have shown an oversupply due mainly to completed conventional terraced shophouse projects which are still vacant even though the occupation permits have been issued i.e. Pujut Corner Commercial, Desa Senadin Commercial Centre, Bandar Baru Permyjaya Commercial Centre Phase II, Desa Bahagia Commercial Centre, Taman Jelita Commercial Centre, Asian Border Commercial Centre, Lutong Commercial Centre and a few small pocket-type commercial properties along the Jalan Miri-Bintulu where the occupancy rate is generally less than 50 per cent.
BRDB Developments Sdn Bhd (BRDB) chief executive officer Kajendra Pathmanathan said overall the local property market was expected to be challenging this year.
However, he expects opportunities beyond that as the economic data has shown that the Malaysian economy is still resilient.
Kajendra cited Moody’s Investors Service that has rated Malaysia’s economic strength as very high in the short to medium term.
“BRDB has got a very focused strategy of finding the key opportunities that exist within the challenges of focusing on delivering excellent client experience and delivering value-driven propositions.
“I think there are a lot of measures in place that are being put by the authorities that would bring some control to the property market and also generate some impetus and momentum for the property market.
“I think investors should feel some confidence there will be some stability in the property market going forward,” he said at a media luncheon recently.
BRDB has projects in Klang Valley, Johor, Australia and Pakistan and is looking at opportunities to expand, said Kajendra.