KUCHING: Rising compliance costs, prolonged approval processes and systemic inefficiencies are increasingly affecting housing affordability and homeownership prospects in Sarawak.
In a statement issued by Sarawak Housing and Real Estate Developers’ Association (SHEDA) on Monday, it said that homeownership, once achievable for single-income families living within reasonable distance of economic centres, has become more challenging over the years.
Today, many young Sarawakians require financial support from parents or grandparents to meet bank loan requirements, reflecting broader affordability pressures in the housing market.
“SHEDA has, for many years, mooted the principle that housing should be Available, Affordable and Accessible.
“SHEDA was therefore extremely disheartened that the publication of Sick Projects by the Sarawak Ministry of Public Health, Housing and Local Government carries with it the blanket implication that developers are solely to blame for the late delivery of vacant possession,” it said.
It added that unless robust mechanisms are urgently implemented to expedite processes and approvals in a transparent and streamlined manner, existing inefficiencies will continue to derail the Sarawak government’s agenda of sustainable and equitable homeownership for Sarawakians, particularly those in the B40 and M40 categories.
According to SHEDA, delays in housing delivery are influenced by multiple interconnected factors across overlapping industries.
Property prices, it said, reflect inflationary pressures, governance processes, administrative effectiveness and external factors beyond developers’ control, including climate-related disruptions and interruptions to global supply and labour chains.
“The fallout from international wars, COVID-19 and China’s meteoric rise in its manufacturing capabilities and unprecedented mastery of artificial intelligence had already increased the cost of most essential construction components by 30 per cent between 2019 and 2023 alone.
“In 2024, statutory survey fees were revised upwards, with some rates being over four times higher than the previous scale of fees in 2023,” it said.
SHEDA had appealed the sudden sharp increase in survey fees to the Surveyors Board Sarawak, without success.
Furthermore, despite the increase in and upfront payment of survey fees, there have yet to be notable improvements in the duration taken for the issuance of strata titles.
“In 2025, developers also had to contend with an onslaught of increased compliance and tax-related costs arising from the Foreign Worker Transformative Approach (FWTA), mandatory Employees Provident Fund (EPF) contributions for foreign workers, payment of levy in lieu of building affordable housing, the expanded Sales & Service Tax (SST) and costs related to executing e-invoicing.
“These rapid-fire charges, without financial incentive or reprieve, have created a hostile environment for businesses, both within and beyond the construction industry,” it said.
In addition to mandatory costs imposed year upon year, SHEDA said that developers are at the mercy of approving government agencies, departments and GLCs at every stage of construction, from the State Planning Authority and the Drainage and Irrigation Department to the Land and Survey Department Sarawak, local councils and utilities bodies.
“The Sale and Purchase Agreements (SPA) demand that developers deliver homes within 24 months (landed) to 36 months (strata), yet do not provide sufficient redress where timelines are frustrated by third parties.
“We believe that the government is genuine in empowering developers to meet timelines set out in the SPA, and urge that relevant stakeholders must likewise be held accountable for delays.
“Land premium calculations, inspections for road certificates and the installation of utilities are not responsibilities that developers can carry out themselves, yet only developers are liable to settle Liquidated Ascertained Damages (LAD) claims brought before the Housing Tribunal,” it said.
Whilst SHEDA acknowledges that errant developers exist, it is a breach of natural justice for developers alone to come under fire in the public eye for the late delivery of vacant possession when the reason for delay is beyond the developer’s control.
“It is our greatest wish that together, SHEDA, the Sarawak government and other related parties will be able to eliminate obstacles that stand in the way of homeownership,” it said.
