Infrastructure development in Sarawak to drive real estate market, overall growth

KUCHING (July 17): Infrastructure developments across are expected to have a positive impact on Sarawak’s real estate market and overall development, Knight Frank Malaysia highlighted in its recently released Real Estate Highlights first Half of 2024 (REH) report.

“Aiming to establish itself as ‘Asia’s Renewable Powerhouse’, Sarawak leads the green economy within Asean nations and is actively working on supplying green energy to Singapore and Peninsular Malaysia through an undersea submarine cable.

“Additionally, Sarawak is constructing a hydro dam in Kalimantan to provide green energy to Nusantara, Indonesia’s new capital,” Knight Frank Malaysia said.

Initiatives like the construction of a hydro dam in Kalimantan and various large-scale industrial parks are part of a broader strategy to attract investments and foster sustainable economic development, it highlighted.

It also pointed out that the industrial sector in Kuching recorded a significant increase in both the volume and value of transactions for industrial properties in 2023 compared to 2022.

The total growth was 16.81 per cent in volume and 27.06 per cent in value.

“With many established foreign investments in the city, Kuching has developed the maturity to further attract investments in the industrial sector,” it pointed out.

Government-led activities and initiatives have also played a crucial role in boosting Sarawak’s industrial sector.

Notable developments include the expansion of Sama Jaya Industrial Park (Phase 2) in Kuching. With an additional 1,000 acres, this expansion aims to attract more investment, directly impacting industrial land values.

Overall, Knight Frank Malaysia pointed out that in 2023, Sarawak’s GDP experienced a significant increase, reaching RM146 billion.

“This marked notable growth of approximately four to five per cent compared to previous years. Sarawak aims to become the second-highest contributor to Malaysia’s GDP,” it said.

“Sarawak’s advantage in renewable energy presents significant opportunities for both local and foreign investors.

“With abundant natural resources and a commitment to sustainable development, Sarawak is well-positioned to attract FDIs in the renewable energy sector, further strengthening its economic growth,” it added.

The industrial property market in Sarawak is also positive and optimistic, with significant support from initiatives like PCDS 2030 by the Sarawak government.

“This is expected to result in increased demand for new industrial parks, leading to an upward trend in property values throughout the region,” it added.

On the overall performance of Malaysia’s property market, Knight Frank Malaysia said, ley infrastructure projects such as the East Coast Rail Line (ECRL), Johor Bahru – Singapore Rapid Transit System (RTS), Pan Borneo Sabah, and MyDigital 5G are expected to further enhance connectivity and support the sector’s growth.

According to the group’s managing director, Keith Ooi: “This indicates a strengthening investment climate, driven by strategic government initiatives and a supportive regulatory environment.

“Knight Frank Malaysia’s mid-year review highlights a promising trajectory for the property sector, supported by robust economic growth, significant investments, and adaptive market trends.”

As Malaysia continues to show promising growth prospects, bolstered by strategic investments, infrastructure improvements, and evolving market dynamics.