Comparison of Land Cost Drivers in Sarawak Housing Development: A Preliminary Review

The persistent escalation of land costs in Sarawak’s principal urban centres Sibu, Kuching, and Miri has become a major barrier to delivering affordable housing, as land acquisition and associated costs typically account for 18–20% of the gross development cost (GDC), significantly influencing project feasibility and pricing. Sarawak’s land matters, governed by the Sarawak Land Code, are further complicated by native customary rights (NCR), complex approval processes, and overlapping jurisdiction between the State Planning Authority and local authorities, resulting in higher transaction costs, longer development timelines, and greater financial uncertainty compared to the more streamlined National Land Code processes in Peninsular Malaysia. This research reviews and compares land cost drivers in Sarawak’s housing sector, focusing on identifying and benchmarking elemental cost components and procedural requirements unique to Sarawak. It emphasizes the importance of robust feasibility studies to accurately forecast costs, manage risks, and ensure project viability in a complex regulatory environment. Using qualitative methods, including document analysis, the study identifies primary land cost drivers such as acquisition premiums, compliance and conversion costs, site preparation, and costs related to navigating NCR and local authority requirements. These components are benchmarked against Peninsular Malaysia, where clearer procedures and greater regulatory efficiency typically lead to lower transaction costs. Expected outcomes include detailed guidelines for stakeholders to manage land cost drivers, actionable recommendations for policy reform, and clearer insights into the monetary and procedural bottlenecks unique to Sarawak. By providing policymakers, developers, and local authorities with a practical decision-making framework, the research aims to enhance the accuracy of feasibility studies, support cost-effective project delivery, and ultimately improve housing affordability in Sarawak’s urban centres, with significant implications for industry practice and policy.