Poor demand in Sarawak has prompted property developers there to drastically cut down on the construction of new houses.

State Housing Minister Datuk Abang Johari Tun Openg said some 5,300 new houses had been constructed this year, about half the 10,800 units constructed for the whole of 2005. Last year, the figure stood at 8,400 houses.

Abang Johari noted there has been a marked decrease in the number of houses built this year, and the entry of housing developers into the market. He also said the ministry only issued 56 new licenses to housing developers this year, a drop from 153 in 2005.

According to him, the poor demand is due to higher house prices – between five per cent and 10 per cent per annum in the past three years – caused by higher production costs.

Since 2005, more than 18,100 houses have been built by private developers. These homes were single- and double-storey terraced units priced between RM140,000 and RM300,000. Some 3,299 double-storey semi-Ds priced between RM280,000 and RM480,000 were also built.

Abang Johari revealed that an average of 25 per cent stock remains unsold each year, and this is added to the following year’s stock.