Leading the Charge: SHAREDA President, Datuk Chua Unveils his Vision for Sabah Property Market
Datuk Sr Chua Soon Ping shares SHAREDA's Vision for Sabah's Property Market and Pioneering Solutions in a Property Hunter Exclusive.
In an exclusive interview with Property Hunter, Datuk Sr Chua Soon Ping, the esteemed President of the Sabah Housing and Real Estate Developers Association (SHAREDA) and Managing Director of Remajaya, provides an insightful glimpse into his dynamic vision for SHAREDA, the Sabah property market, and the groundbreaking solutions poised to shape the industry's future.
With a passion for sustainable and innovative developments, Datuk Chua embarks on a mission to drive positive change within the real estate sector of Sabah.
In the interview, he delves into SHAREDA's overarching vision, aiming to redefine the landscape of the property market and make homeownership a reality for all. With a focus on inclusivity, SHAREDA's vision reaches beyond traditional boundaries, striving to foster a vibrant and diverse property market that caters to the needs of both locals and foreign investors.
Datuk Chua at the rooftop facility deck at Bay 21
Datuk Chua at the rooftop facility deck at Bay 21
Stay tuned as we delve deeper into the insights shared by Datuk Chua Soon Ping, covering critical topics such as the current challenges faced by the Sabah property market, transformative solutions, the future of Sabah's MM2H program, and the invaluable role of the SHAREDA Institute in shaping the industry's growth and innovation.
Brace yourselves for an enlightening conversation that promises to reveal a compelling vision set to propel the Sabah property market into a new era of success and sustainability.
What lies ahead for Sabah?
SHAREDA's vision for 2023 - 2025
PH: Congratulations on being re-elected as the SHAREDA President 2023-2025! Can you please share with us what your vision is for this term?
DC: At SHAREDA, our overarching mission and goal revolve around ensuring that everyone can own a sustainable home. We are dedicated to meeting the diverse demands of our community, whether it be providing affordable housing options or catering to the middle to high-income groups. Regardless of the housing structure, our primary focus is on creating homes that are built to stand the test of time and last for generations.
To us, sustainable homes mean prioritising energy conservation. For instance, we advocate for the construction of homes that strategically avoid facing east and west, thereby reducing heat accumulation within the living spaces. Embracing such environmentally conscious solutions is crucial for achieving long-term sustainability in the real estate sector.
Datuk Chua and his team shaping a brighter future
Datuk Chua and his team shaping a brighter future
While serving our members is essential, SHAREDA recognizes that our objectives cannot be accomplished in isolation. We firmly believe in fostering collaboration between the private and public sectors to streamline the homebuilding process and enhance affordability. Delays in construction only lead to increased housing costs, making it imperative for us to work together to overcome these challenges and ensure that homeownership remains within reach for all segments of society. By embracing a holistic approach and promoting sustainability through collaboration, SHAREDA aims to make sustainable homeownership a reality for everyone in our community.
Addressing the elephant in the room
Sabah's water woes and mismatched properties
PH: How do you plan to address the current challenges faced by the housing and real estate industry in Sabah?
DC: Addressing the challenges faced in the Sabah real estate industry, one critical issue that requires immediate attention is our water supply. Currently, nearly 30% of our water supply is lost through non-revenue water, attributed to pipe breakages, water theft, and illegal usage. We strongly urge the government to take prompt action to rectify this situation and ensure a sustainable and efficient water supply system.
Another one of the prevailing concerns pertains to the requirement of reserving 30% of properties in Sabah for the Bumiputera population.
However, a significant issue arises as even Bumiputera buyers show reluctance to purchase these units due to the restriction of selling the property and realizing a return on investment only after a 5-year period from signing the Sales and Purchase Agreement (SPA).
To address this challenge, we are actively developing a solution that allows Bumiputera buyers to sell the unit on the same day of purchase while still retaining the privilege of benefiting from the 5% Bumiputera discount. This innovative proposal has garnered the support of the Chief Minister, and upon successful implementation in Sabah, there is a possibility of replicating this initiative in West Malaysia following the necessary amendments.
To tackle the broader challenges affecting the real estate sector in Malaysia, I recently engaged in discussions with the Federal Minister of KPKT. Among the ten challenges we addressed, two stand out as significant concerns for Sabah:
1. Mismatched properties and end financing: Inflation has outpaced salary growth, leading to tightened policies to prevent market collapse. This has resulted in banks being more cautious, impacting property financing availability. The rising cost of construction further compounds the issue, causing a mismatch between property prices and affordability. Collaborative efforts between the private and public sectors are essential to find effective solutions and ensure housing remains accessible to all.
2. Supply over demand: To address the issue of over-supply in the primary market and the subsequent price surge in the secondary market, we propose adjusting requirements to allow foreigners to participate in the market. By carefully managing this aspect, we can potentially alleviate the demand-supply imbalance and contribute to a more stable and sustainable real estate market.
Together, with concerted efforts from the government, private sector, and relevant stakeholders, we are confident in overcoming these challenges and creating a thriving and inclusive real estate environment for Sabah and Malaysia as a whole.
Datuk Chua and his team at Bay 21
Datuk Chua and his team at Bay 21
Why invite foreign investment?
The latest on Sabah-MM2H
PH: You mentioned your proposal to tackle the issues we are facing with supply and demand with foreign investment. What is the latest update now on Sabah-MM2H?
DC: Over the past 18 months [as of July 2023], we have engaged in ongoing discussions with the Chief Minister, to revamp Sabah-MM2H and align its requirements and processes with the successful Sarawak program established before the pandemic in 2019. The dynamic policy changes in Sarawak and West Malaysia over the last few years have created challenges for both current MM2H holders and applicants.
The Sabah-MM2H program is designed to attract discerning investors to establish their second home in the state of Sabah. Participants are required to commit to residing in Sabah for a minimum duration of 30 days, facilitated by an initial deposit of at least RM300,000 through accredited merchant banks.
Upon fulfilling the one-year residency requirement, investors become eligible to withdraw up to 40% of their deposited amount. This provision grants them the freedom to allocate these funds for the acquisition of vehicles, secondary residential properties, and educational expenses, thereby promoting further economic activity and enhancing the local market.
The overarching objective of the Sabah-MM2H initiative is to foster a sustainable and mutually beneficial relationship between investors and the region, stimulating economic growth while enjoying the unique lifestyle and opportunities that Sabah has to offer.
Our primary focus is on making Sabah an attractive investment destination for foreigners, and to achieve this, we advocate for competitive requirements and a simplified e-application process.
The coast of Kota Kinabalu, the capital city of Sabah, Malaysia
The coast of Kota Kinabalu, the capital city of Sabah, Malaysia
By collaborating with the government and weighing the available options thoughtfully, we are confident in our efforts to foster a thriving investment climate in Sabah, attracting foreign investors and injecting much-needed cash into our local economy.
Enhancing professionalism in Sabah
The SHAREDA Institute Initiative
PH: In your opinion, what are the key initiatives needed to enhance the professionalism and skills of real estate developers and professionals in Sabah?
DC: As the President of SHAREDA, our focus is on enhancing the professionalism and skills of real estate developers and professionals in Sabah.
We recognise the importance of construction training and will work with CIDB to ensure that the levy charged to developers contributes to comprehensive training programs for skilled workers.
Collaborating with the University of Management and Technology, we have initiated a specialised Property Development course under the SHAREDA Institute with HRDF-certified lecturers, aimed at equipping participants with the expertise needed for our industry. Our commitment to professionalism, ethical conduct, and effective project management will help mitigate issues like abandoned projects, ensuring a prosperous future for real estate development in Sabah.
Together, we will build a strong and skilled workforce that drives the sustainable growth of our sector.
Datuk Chua touring the Bay Suites construction site
Datuk Chua touring the Bay Suites construction site
The future is here
Integrating AI technologies in property development
PH: Can you elaborate on your plans to promote innovation and the adoption of new technologies within the housing and real estate sector?
DC: Our strategic vision is focused on advancing fully sustainable developments within the housing and real estate sector. To achieve this, we actively promote the integration of renewable and conservation technologies among developers.
Our emphasis is on harnessing the potential of cutting-edge innovations, particularly in the realm of smart homes, where AI technology can revolutionise construction processes by optimising material usage and reducing reliance on manual labour. Embracing these new technologies will pave the way for more efficient and environmentally conscious practices within our industry.
Employing data and AI technologies is key to addressing the issue of mismatched properties in the real estate market. Developers are required to obtain the Advertising Permit and Developer License (APDL), providing valuable data on ongoing construction projects in the vicinity, be it high-rise, commercial, or residential properties.
By analysing this data, we gain insights into the supply aspect. However, it is equally important to understand the demand in the area, which can also be studied using advanced technologies. Armed with this comprehensive information, developers can make well-informed decisions, significantly reducing the likelihood of creating mismatched properties.
Datuk Chua reviewing building plans with his team at Medovik Coffee House
Datuk Chua reviewing building plans with his team at Medovik Coffee House
Despite the challenges posed by security concerns in accessing such data, the SHAREDA Institute proves immensely beneficial as it provides a platform to obtain and study this crucial information, enabling better decision-making in the industry.
In addition to SHAREDA's visionary plans for the Sabah property market, Datuk Chua Soon Ping's commitment to enhancing the professionalism of property developers in the region through the SHAREDA Institute is commendable.
By equipping industry professionals with cutting-edge knowledge and expertise, this initiative aims to raise the bar and foster a culture of excellence within the sector.
As we conclude this insightful interview, let us all rally behind SHAREDA's bold vision and embrace the opportunities it presents for sustainable growth and innovation.
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