Property Hunter Magazine Issue 64 2015 | Page 68

HOT TOPIC | SHAREDA 2014 Property Development Annual Report & Market Outlook 2015 Similar to residential properties, commercial developments are also moving further away from the city centre and are concentrated within 20 - 30km distance from the city in areas such as Tuaran and Papar thoughthere were two significant launches near the CBD namely Donggongon Avenue and T1@ Bundusan, located in Penampang. After many notable projects like Imago Mall @ KK Times Square, Oceanus Waterfront Mall @ KK Waterfront, RiversonWalk, and PacifiCity in Likas Bay that took place in the heart of the city, most of the upcoming developments will befocusing in suburban areas within 18km radius from the city centre. LANDED PROPERTIES STILL POPULAR IN THE WEST COAST DESPITE PRICE INCREASE Landed residential property remained the preferred product in Kota Kinabalu’s property market. However, property developments continued to move further towards the outskirts with Tuaran, Inanam and Papar posting the largest number of project launches in 2014. Of these three districts, the selling price for houses in Inanam was higher asit is much closer to the CBD while developments 20 - 30km further away carried an average price tag of RM250 – RM295 psf which is still within the affordable range. T he significant drop for this year’s GDV (RM278,000,000) compared to last year’s GDV (RM830,878,000) was mirrored by a drop from 22 projects launched in 2013 compared to only 10 projects in 2014. The affordable price for an intermediate single and double storey terrace ranged from RM279,194 to RM288,800 with floor areas of 952sq.ft to 1,024 sq.ft. For the medium costing range double storey terrace houses, the prices went from RM338,800 to RM489,338 with floor areas of 1,024 sq.ft to 1,616 sq.ft. The upper and more luxurious landed properties located closer to Kota Kinabalu and its vicinity had considerably higher selling prices. The sharp decrease of 72% in supply and increase in prices of landed residential houses of up to RM550,000 - RM750,000 for a double storey house was attributed to rising land cost within 20km of the city centre. Double storey developments such as in Kinarut 68 www.PropertyHunter.com.my and Tuaran which is located some 30km away from the city centre boasted good sales performance, proving that the affordable range of landed housing of not more than RM300 psf can now only be found in the suburban areas. Even localities within 16km of the city centre such as Inanam was selling at RM405psf which pointed to the undeniable fact that Kota Kinabalu’s growth area is fast establishing itself within the northern corridor. Secondary sub sales market for double storey houses will continue to be active with limited landed houses from the primary market and developer preference for vertical stratified apartment or condominium projects due to higher return of investment in terms of density gain. Condominium and apartment development projects have been developed in suburban areas such as Sepanggar with a price range of RM325 – RM368 psffor a built up area of 958 sf - 1,112 sf, and in The GDV for commercial developments was only RM430.6 million compared to tEb