Sarawak Property Market 2025: What Buyers Really Need to Know

A Market Finding Its New Footing

For the longest time, Sarawak’s property market was easy to describe. It was all about landed homes. Terrace houses, semi-detached units, bungalows: that was the everyday reality for most buyers. High-rise living? That felt like something meant for Kuala Lumpur, not Kuching.

But look around today, and you’ll notice something has shifted.

Step outside in Kuching, and you’ll see cranes dotting the skyline. New condominium projects are popping up everywhere. It’s not just a trend anymore: it feels like a real change in how people here want to live and invest.

For buyers, that change brings good news and bad news. Some segments are looking quite affordable right now. But with more high-rise units coming onto the market, there’s also a real risk of oversupply. That could make renting out or reselling your unit tougher down the road.

To get this market right, you really need to understand what’s happening locally: not just follow what the national headlines say.

A Quick Snapshot of the 2025 Market

Overall, Sarawak’s property market feels stable, though a bit mixed.

Here’s the good part: the number of unsold completed homes (what experts call "overhang") has actually gone down compared to previous years. That means buyers are slowly absorbing what’s already built.

But not everything is improving evenly. The overhang that remains is mostly in condos and apartments. Landed homes? Still selling steadily. Commercial units are also doing relatively fine.

Price movements tell a more complicated story. In some areas, prices have dipped: selectively, not everywhere. Even though the state average price went up, quite a few districts actually saw quarterly declines. That’s your reminder: state averages can be misleading. What matters is your specific neighborhood.

What’s Really Happening with Prices

Data from late 2025 shows that median prices dropped quarter-on-quarter in several areas. That means if you bought earlier in the year, you might have paid more than someone who waited.

But don’t assume this happened everywhere. Different districts behaved very differently.

Parts of Kuching saw prices soften. Miri and Sibu? They followed their own rhythms, driven by local jobs and industries. And areas near new infrastructure or commercial hubs held up much better.

The lesson? Don't shop by state average. Look at the district. Look at what's actually happening on the ground: new roads, new employers, new hubs. That’s what really moves prices.

What’s Still Keeping Demand Alive

Even with some market cooling, a few big factors are still propping up demand in Sarawak.

The Pan Borneo Highway is making a real difference, connecting cities and economic centers more smoothly. The Sarawak-My Second Home (S-MM2H) program is bringing in more foreign residents, especially retirees. More jobs mean more people needing a place to live.

Also, Sarawak’s population is aging: and that’s creating new demand for senior-friendly homes, lift-access units, properties near clinics and hospitals, and spaces for multi-generational families.

And here’s something you might not expect: Kuching is quietly building a reputation as a great place to retire. That could slowly bring more international buyers into the picture.

Why More People Are Choosing High-Rise Living

High-rise living is no longer unusual in Sarawak especially in Kuching. Two groups are driving this shift.

First, young professionals. They want lifestyle features such as gyms, pools, security and they love the convenience of being close to work.

Second, older homeowners who are ready to downsize. They’ve owned landed houses for years, but now they want something easier to maintain, with security and community.

If you’re thinking about a condo, remember: location is everything. Units near universities, medical centers, commercial hubs, or business districts tend to perform much better. They attract steady renters.

But do check the developer’s track record. With so many new projects coming up, not every developer delivers the same quality.

The Oversupply Risk You Should Know About

Yes, condo living is becoming more popular. But let’s be honest: there’s a risk here too.

Kuching has a large number of upcoming condo projects in the pipeline. When supply grows faster than actual demand, a few things happen: price growth slows, rental competition heats up, and some units sit empty for months.

We’re already seeing signs of this in the overhang data. Unsold units are mostly in high-rise developments, while landed homes keep finding buyers.

So here’s my advice: don’t buy just because you’re hoping prices will skyrocket. Buy where there’s real, everyday demand. Think student housing near a university. Homes for working professionals near offices. Retirement-friendly developments near medical facilities.

The Affordability Squeeze

Let’s talk about money. In prime areas of Kuching, home prices have climbed faster than local incomes. That gap is getting harder to ignore.

What does this mean in real life? Many young Sarawakians are finding it tough to break into the mid-to-high-end market. Some new developments are leaning heavily on investors, not actual families looking for a home.

If you’re buying, stick to the basics. Location. Build quality. Developer reputation. Long-term livability. A fancy show unit might look great, but what really matters is whether people will genuinely want to live there five years from now.

Help for First-Time Buyers

There are a few government schemes worth knowing about.

Rumah SPEKTRA Permata offers affordable housing through the Housing Development Corporation. The MUTIARA Financing Scheme gives you lower interest rates and deposit assistance if you qualify. The Housing Deposit and Repayment Assistance Scheme (HDRAS) has recently been expanded to include subsale and auctioned homes.

There are also SPEKTRA Lite, SPEKTRA Medium, and Sri Pertiwi for different income groups. If you’re a first-time buyer, definitely check your eligibility before you start shopping.

Protecting Yourself as a Buyer

If you’re from Peninsular Malaysia, note that Sarawak has its own rules for strata property management.

The Strata Management Ordinance 2019 sets the framework. The Strata Management Tribunal helps resolve disputes without dragging you through lengthy court processes. And the Strata Management Directions 2024 aim to make maintenance fund management more transparent and accountable.

If you’re buying a condo, it pays to understand these rules.

Why the SST Change Matters for Your Timing

One more thing: the Sales and Service Tax (SST) is scheduled to go up in July 2025.

That likely means higher construction costs, which developers may pass on to buyers. Before that deadline, though, some developers might offer purchase rebates, discounted packages, or promotional financing.

If you were already planning to buy, moving a bit earlier could work in your favor.

What to Keep an Eye on in 2026

Looking ahead, a few trends are worth watching.

Sustainable developments: energy-efficient buildings, water-saving features, eco-friendly materials: are gaining traction. Quality-driven projects from reputable developers are likely to do better than speculative ones.

The market is slowly separating the real deals from the weak ones. Also, Sarawak is hosting regional events like the ASEAN Summit, which could boost tourism and hospitality demand: though the direct impact on residential property might be modest.

Some Honest Advice Before You Buy

Before you sign anything, keep this in mind:

• Compare district-level performance, not just state averages.
• Landed properties still tend to offer more stability.
• Be careful with high-rise investments: especially in areas with a huge supply pipeline.
• Always verify the developer’s track record and property management quality.
• Look past the marketing gloss. Focus on real demand and what you can actually afford.

One Last Thought

Sarawak’s property market is changing. The move from a landed-home culture toward high-rise living isn’t just a headline: it’s happening in real time, shaped by how people actually want to live and work.

The opportunities are real. But so are the risks, especially where supply is growing fast.

For buyers, the winning formula hasn’t changed: understand the market, stick to the fundamentals, and buy based on real demand: not speculation.