WHAT IS PAN BORNEO HIGHWAY?
Pan Borneo Highway is a toll-free road network which links the major cities in the two Malaysian states—Sarawak and Sabah, with the central capital of Brunei. This mega project is estimated to cost RM27 billion and to come to completion in 2030.
The road stretches 2325km from Sematan in Sarawak to Serudong in Sabah. Some of the major road components include 4-lane dual carriageway, 2-lane single carriageway, pedestrian bridges, P-turns, as well as rest and service areas. Also, the Communications and Multimedia Ministry is designing a comprehensive strategy to build telecommunication towers all along the highway.
In 2006, Malaysia’s past Prime Minister Datuk Seri Abdullah Ahmad Badawi even announced visionary plans to expand this highway to Kalimantan, Indonesia.
“ Pan Borneo Highway is not just a catalyst for economic growth but a game-changer that would bring huge transformation to the State. It is expected to create an 8-fold multiplier effect on the State’s economy. ”
YAB Dato’ Seri Mohd Najib Tun Abdul Razak, Prime Minister of Malaysia
HOW WILL PAN BORNEO HIGHWAY AFFECT THE PROPERTY PRICE IN KUCHING, SARAWAK, MALAYSIA?
In any cases, the two broad factors that may affect the property prices are :-
1. Increase Consumer Income [DEMAND]
The Pan Borneo Highway project significantly promotes the construction industry, tourism industry, and other supporting sectors in Sarawak. The government revealed that it may possibly generate 400,000 direct and indirect employments, especially among the locals, in Planning, Design, Construction as well as Operations and Maintenance Stage. For instance, a large number of professional Bumiputera (native) contractors are engaged in line with Malaysia’s policy on advancing Bumiputera’s economic participation.
For this reason, there will be a rise in consumer income and thus the purchasing power among the beneficiaries of this Pan Borneo Highway project. It is likely that they will save and spend it on the consumption of high-value items, such as residential and commercial properties in Kuching. This leads to an increase in property demand, and hence driving up the property price.
2. Create New or Bigger Domestic Consumer Markets [DEMAND]
With the Pan Borneo Highway, there will be a shorter travel distance and more comfortable road journey between the Sarawak’s capital city—Kuching and its neighbouring districts, such as Sematan, Sri Aman and Serian.
Also, many landlocked remote areas and native customary lands will be far more accessible than they now are. Bridges will be established to reduce the reliance on cumbersome long boats and ferries by the people living in the interiors of Sarawak.
Kuching has been known among the Sarawakians as a city full of job opportunities and ideal for modern living. With the soon improved connectivity, people residing outside Kuching like above-mentioned may choose to migrate to live and/or work in Kuching instead. This will then trigger a rise in their interest in buying the Kuching residential and commercial properties, hence raising the property price.
As a qualifying statement, we do acknowledge that there might be Kuchingnites moving out of Kuching, in search of properties in neighbouring divisions or anywhere along the highway. However, such case is believed to be less common than the former.
3. Attract Real Estate Investors from West Malaysia and Foreign Countries [DEMAND]
It is believed that for the few years to come, more property buyers from West Malaysia, Brunei and Indonesia will start to comprehend how the construction of Pan Borneo Highway will affect Kuching’s property scene favourably, just as how the North-South Highway stimulates economic growth in West Malaysia.
On top of that, the population in Sarawak especially in the urban areas has been steadily expanding, said by the late Sarawak Chief Minister Tan Sri Adenan Satem. It means that the demand for Kuching properties will continue to rise. This serves as yet another signal to the investors that Kuching properties may be worth investing in.
As such, we will most probably witness a hike in investors’ confidence in the Kuching properties, thus a rise in its property demand and price.
In short, it can be concluded for now that the Kuching property PRICE will INCREASE with the construction of the Pan Borneo Highway. We really look forward to seeing how it is going to stir up the property scene in Kuching!
Read our previous article here: Top 5 Kuching Investment Hot Spots—iDealRealty 理想產業
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