Many factors why medium-range homes still not within reach for many

KUCHING (Oct 17): The affordability of medium-range homes in Sarawak is still a challenge due to the combination of rising costs, limited supply and the economic realities faced by many middle-income families, said Dato Sim Kiang Chiok.

The Sarawak Housing Estate Developers Association (Sheda) advisor said among reasons for the high cost of houses in Sarawak include land prices, construction costs, utilities, infrastructure development, consultancy fees, bank interest, administrative costs, and regulatory compliance in the planning and execution of housing developments.

“Therefore, developers must consider these factors when setting the selling price of homes.

“Developers also need to balance their cash flow and often set their prices according to market demand, and as a result, many developers are now building in suburban areas where land is cheaper, focusing on smaller homes such as single-storey houses rather than double-storey homes,” he told The Borneo Post.

In urban areas, he pointed out that developers are increasingly building high-rise apartments with higher density to reduce the land cost per unit, which helps make housing or apartments more affordable.

“As highlighted earlier, land scarcity in urban areas, high construction costs, slow housing development, and growing demand have all contributed to making homes, particularly in the mid-range, harder to afford.

“While some government incentives exist, they are often targeted at low-income buyers, leaving middle-income households struggling to find affordable housing options.

“In my opinion on housing affordability in Sarawak, housing is a basic need that provides shelter for us and our families. It is a vital part of our lives where we can rest, play and work,” he said.

Sim added that most house purchases are made with housing loans, and the loan amount is typically based on the income of the purchasers.

Meanwhile, Consumers Voice of Sarawak (Covas) president Michael Tiong said there is a growing need to build more affordable housing for the B40 and M40 groups to ensure that everyone has access to comfortable, safe homes.

“This will not only help families put a roof over their heads but also enable them to better manage the rising cost of living.

“As housing expenses often make up a significant portion of a household’s budget, providing more affordable options can relieve financial pressure and allow individuals and families to allocate resources towards other essential needs such as education, healthcare, and daily living expenses.

“Ultimately, these initiatives can contribute to improving the overall quality of life for the people,” he said.