KUCHING: The recovery of the oil and gas (O&G) industry may give a lift to the industrial market in oil town Miri, which has been in the doldrums.
The Miri’s industrial market is the only market which has been on the downside recently as other markets in the region are generally quiet and stable, according to C H Williams Talhar Wong & Yeo Sdn Bhd (WTWY).
“Miri’s industrial market may undergo some slight improvements in 2019 on the hope that the oil and gas industry recovers.
“Despite the lack of new supply in Miri, there is optimism arising from the signs of recovery in the oil and gas industry,” the leading property consultant said in its “Sarawak Property Market: 2018 Property Market Review & Outlook” released recently.
Global crude oil is currently trading close to the US$70 per barrel level.The price was volatile last year which saw Brent climbing to almost US$70 per barrel in mid year before plunging to US$50 per barrel by year-end.
In Kuching, the WTWY report said the city’s industrial sector was dull in 2018 with few completions following the paucity of industrial projects launched in recent years.
It said while the sector currently lacks vibrancy, there is potential but lacks the hype to attract property players.
In 2018,there were no new industrial projects launched in the city,with only 26 units in Industri 87,Jalan Batu Kitang scheduled for completion.
“However, there is interest in secondary market, especially for units located in established industrial areas.
“Semi-detached units and warehouses remain popular with market prices ranging from RM600,000 to more than RM1 million, depending on the land size.
“Occupancies and take-up rates were stable and may remain unchanged for 2019 whilst rentals ranged from RM1.20 to RM1.50 psf for semi-detached units.
“In the long run,there is good potential with the increasing presence of SMEs (small and medium enterprises) which will demand space for workshops,showrooms and storage/warehousing,” said WTWY.
It said Bintulu should continue to benefit from its identity as an industrial town to attract more investments,in addition to the existing foreign corporations such as Sakura Ferroalloy and OCIM,both of which have large factories established in Samalaju Industrial Park.
On Sibu industrial sector,the report said new supply of industrial units is usually piece meal.
“Vacant land with development potentials are located along Jalan Ding Lik Kwong area,Sibu Jaya and Jalan Tun Ahmad Zaidi Adruce.”
Overall, WTWY said investment on industrial properties in this region could be regarded as a safe option given the slowly rising rental and constant yield over the years.
On Sarawak’s infrastructure development,the report said it was high on the list,with many projects underway by second half of 2018.
“The Pan Borneo Highway is in good progress and expected to be completed as scheduled by 2021.
“The Sarawak Coastal Road project was tendered out during the year and expected to start by mid 2019,” it added.
WTWY said the coastal road project would comprise of feeder roads and bridges to improve connectivity between the coastal towns/kampungs to the highway.
In 2018, several major road and bridge projects with combined contract value of more than RM465 million were completed.These are the Batang Samarahan Bridge (RM93.8 million),Mile 10 – 15,Kuching-Serian Road (upgrading) (RM84.5 million), Matang-Batu Kawa new link road and bridge (RM220 million) and Datuk Abang Haji Kipali underpass in Petra Jaya (RM67 million).
Several other bridge and road projects in various stages of construction as at October 2018 include Long Lama Bridge (RM67 million;87% completed), Batang Tatau Bridge (37%) and Marudi Bridge (due to start in Q1-2019).
The on-going road projects include Menjawah-Belaga Road (RM86 million),Jalan Ulu Sikat -Sebakong (RM75.4 million) and,Kampung Kupang-Bajau Road/Bridge (RM180 million).
