'Buy property in new housing areas now'

(Top) Homeowners look at layout plans of STKRJ (Skim Tanah Kurnia Rakyat Jati) Kg Lumapas `A', Lumapas during the draw for house lots last year. (Above) Lim Kok Shien says areas such as Lumapas, Bengkurong and Dadap are key growth areas. Pictures: BT/Rudolf Portillo

Quratul-Ain Bandial
BRUNEI-MUARA

Thursday, June 3, 2010

A GROWING population and limited land resources in Brunei-Muara will spur the growth of the real estate sector in the next few years, increasing the value of land and housing in new development areas, said a financial management lecturer from Universiti Brunei Darussalam (UBD) yesterday.

Areas such as Lumapas, Bengkurong and Dadap have been identified as key growth areas due to the improvement and augmentation of infrastructure, such as roads and drainage works.

"Now is the time to invest in these areas, because once the bridge (to Lumapas) is done it will only be a short drive to Bandar," said Lim Kok Shien in an interview with The Brunei Times.

The proposed bridge will provide convenient and proper access to Mukim Lumapas, said Lim, and will open the area to more economic development.

"In the past two to three years, the value of land in many areas has increased because of better infrastructure by government... It has enticed people to buy in places like Dadap, which is flood-prone, but a lot of people are buying in those areas because drainage is being constructed," said Lim.

The Ministry of Development has allocated $146 million for Public Works Department projects including the repairs and maintenance of sewers and drainage works, as well as road and water works in the Brunei-Muara district.

The potential for a bridge linking Bandar Seri Begawan and Lumapas has been mooted for several years and was also discussed during last year's session of the State Legislative Council. However, the government is still studying the viability of such a proposal.

The proposed main bridge from Kg Pintu Malim, near the capital, to Pulau Berambang would be about a kilometre long, and a smaller bridge to Mukim Lumapas would be about 500m long.

Independent consultants forecast the project's total cost at between $60 million and $100 million.

Campaigners for the bridge have said it will ease traffic congestion along Jalan Tutong, Jalan Bengkurong and Bunut and significantly reduce travelling time to the area, which currently takes about an hour, and even longer during peak hours.

The number of commuters along the Bengkurong-Tanjong Bunut road is increasing due to more residents moving into the area as national housing schemes are completed, such as Kg Lumapas 'A'.

The Housing Development Department has identified Lumapas as one of the few remaining areas in the district with the space for national housing schemes.

As reported in The Brunei Times last month, Hj Mohd Rozan Dato Paduka Hj Mohd Yunos, permanent secretary at the Ministry of Development said "We are running out of land space in Brunei-Muara district" for housing development, adding that there were only a few areas that could still be developed for housing and industrial activity.

An average of 1,200 people applying for housing each year and by 2017, it is projected that 30,000 houses will be required and the government is struggling to keep up with demand.

"One of the indicators that the market (for housing) will grow (in these areas) is the growing population. Land is not increasing, and demand will definitely be greater than supply," Lim commented.

Many of these formerly isolated areas have great potential as agricultural zones, which may be exploited by the government in future and would see their market value skyrocket.

"Once more development occurs in these areas, the value (of your property or land) is bound to go up," Lim said.

He added that property was always a sound investment, as its value appreciates over time, unlike other big-ticket items such as cars and electronics which depreciate the minute you walk out the store.

"If I was a fresh graduate, just started working and with a lot of disposable income, I would invest in a house, definitely. You can never lose on that," he remarked.

The Brunei Times