KUALA LUMPUR: The property market in Kuching, Sarawak, is currently in a recovery phase, steadily progressing toward the peak of the property clock.

While the supply of high-rise strata properties continues to expand, demand remains strong for sustainable, high-quality landed homes, according to Albert Ko, managing director of Exal (Malaysia) Sdn Bhd, a subsidiary of the Australian-based EXAL Group.

He said that major investments in Affin Bank, MAS Wings, the ART system, green technologies, the Second Coastal Trunk Road, the Pan Borneo Highway, Kuching Deep Sea Port and the Kuching Smart City Master Plan have reignited optimism in the market.

Ko attributed Sarawak's strong economic growth to visionary leadership, particularly under the Premier's post-Covid Development Strategy 2030.

"With a stable government, the region is experiencing sustainable and robust economic expansion," he told Business Times.

He said that major investments in Affin Bank, MAS Wings, the ART system, green technologies, the Second Coastal Trunk Road, the Pan Borneo Highway, Kuching Deep Sea Port, and the Kuching Smart City Master Plan have reignited optimism in the market.

"With Sarawak's economy projected to grow by 5 per cent in 2025, we are confident that this positive momentum will continue to benefit businesses and all Sarawakians. We see this as an exciting period for the property market, particularly in the context of sustainable development and infrastructure advancements," he said.

Founded in 2016 and headquartered in Perth, EXAL is recognised for notable projects such as Melvista on Broadway, One McCabe, North Fremantle, and Waterford, a purpose-built student accommodation for Canning College and Curtin University valued at over RM450 million.

The company currently has over RM3 billion in development projects in Perth.

Marking its first venture outside of Australia, EXAL introduced SÓL Estate, a premier gated and guarded community in Kuching, Sarawak, featuring 269 bespoke homes.

Phase 1, consisting of 42 semi-detached houses and 32 terraced homes, is set for completion this year.

Looking ahead to 2025, Ko said the company will maintain its focus on innovation and sustainability.

The priority is fulfilling commitments to Phase 1 (Prime) homeowners while progressing with the construction of Phase 2 (Apex) homes, he said.

Additionally, EXAL is laying the foundation for SOL City, a visionary master plan integrating residential, recreational, and commercial spaces, renewable energy hubs, community farms, and expansive green spaces.

Ko noted a growing demand for energy-efficient homes, driven by improved accessibility through the Kuching Smart City Master Plan and the Pan Borneo Highway.

He also observed increasing foreign investor interest in ESG-compliant and green-certified properties due to their sustainability and long-term value.

Malaysia's diverse demographic and rising global interest in ethical investments have led to a surge in Sharia-compliant property investments.

"We address these trends by offering developments like SOL Estate, which are GreenRE certified, reducing operational costs and enhancing asset value. We partner up with financial institutions that provide Sharia-compliant financing options, ensuring inclusivity and catering to evolving investor preferences," he said.

Ko said these strategies position EXAL as a leader in sustainable and ethical property development.