Property Hunter Magazine Property Hunter Magazine Issue 52 - March 2014 | Page 41

hood and hob, plus a microwave oven. SLOWER GROWTH EXPECTED FOR LANDED HOMES According to Sulaiman, slower growth in landed home prices due to the surge in supply over the last 18 to 24 months. Prices would have to be supported by actual occupation or tenancy demand to be sustainable in the long run.. “Nevertheless, fluctuations in price growth rates do occur and generally, prices are still climbing,” he adds. Developments north and south of KK will continue to be targeted by genuine and first-time buyers due to their affordability says, Sulaiman. An average y-o-y growth of 7.36% (about RM27,000) was recorded during the 3Q2013 review, slower by 1.54% compared with 2Q2013. The average y-o-y growth for the same review period in 2012 was 8.41%, indicating slower growth of 1.05%. Taman Indah Permai continues to lead price growth for the second consecutive review period with an average growth of 11.67% y-o-y (about RM35,000) in 3Q2013. Q-o-q, the area recorded 1.52% growth — up RM5,000 from RM300,000 in 2Q2013. Values for homes in Taman Indah Permai, which currently hover at RM450,000 to RM500,000, are set to catch up with those of neighbouring developments such as Taman Bukit Sepangar as they are marginally lower. According to Sintia, a similar scenario is seen in Taman Jindo, which recorded 11.43% growth y-o-y in 3Q2013 — up RM40,000 from RM350,000 in 3Q2012. In comparison, y-o-y growth for the same period during the previous year was 7.69%. Two-storey terraced houses are priced from RM450,000 to as high as RM1 million. Ujana Kingfisher recorded 9.72% y-o-y price growth in 3Q2013, slower by 1.71% and 1.05% compared with 2Q2013 and 3Q2012 respectively. For other sampled properties, y-o-y growth was between 3.57% and 4.44%, all below the average y-o-y growth for the current review. Single-storey terraced houses saw price growth of 10.22% y-o-y (about RM25,000), slower by 1.06% compared with the previous quarter. Compared with 3Q2012, however, growth rose 3.65%. Taman Sri Kepayan was the only area to record q-o-q growth (1.72%) — up RM5,000 from RM290,000 in 2Q2013. Strategically situated in the Kepayan area, off Jalan Pintas Penampang, Taman Sri Kepayan continues to lead the price growth chart with 18% growth y-o-y, or about RM45,000. Though homes there are sought after because of the good location and accessibility, the higher asking prices makes it hard for potential buyers to obtain loans. Taman Tuan Huat recorded an average y-o-y growth of 9% — higher by 2% compared with 2012, while Taman Nelly Ph9 recorded 4% growth, the same as last year. CONDOMINIUMS TO PERFORM WELL The strong sales performance of condominiums in the city, including the “100% sold out” luxury Pelagos Designer Suite (priced at almost RM1,000 per sq ft) as well as The Loft (prices start at an average of RM700 per sq ft), suggests the market will continue to perform well, according to the report. Overall, the outlook for the condominium market has been positive over the last five years, especially in some of the earlier schemes such as The Peak Condominium, where values rose 56% to about RM500 per sq ft, Sulaiman says. Some renovated units were transacted for as high as RM700 per sq ft. The second best performing condominium development was Alam Damai, which saw prices increasing 51% in three years (from RM290 to RM440 per sq ft). The average price for condominium units in KK rose from RM403 p in 3Q2012 to RM434 per sq ft in 3Q2013 — an increase of 7.79%. This was, however, slower by 0.44% compared with the average growth of 8.23% in 2Q2013 and down 2.22% compared with the 10.01% recorded in 3Q2012. The sampling registered a y-o-y growth of between 4% and 11%. Likas Square was the best performer (11% growth) while Alam Damai continued to impress (10% growth). With the exception of Radiant Tower and Marina Court, the other samples recorded more than average growth. Marina Court registered 4% y-o-y growth, which is the same as 2Q2013 and the slowest pace since 2011. Although newly launched condominiums have been known to be launched at RM700 per sq ft (The Loft), the price appreciation for units in Marina Court was rather sluggish despite being located in the town centre, says Sintia. This, he adds, might be due to the large number of new units in the primary market, leaving buyers spoilt for choices. Another factor may be a new development, Ocenus Waterfront Mall, which is under construction, will block the sea view once enjoyed by Marina Court. STEADY GROWTH IN RENTAL YIELDS Rental growth for 2-storey terraced houses averaged 12.72% y-o-y, 3.47% higher than that recorded in 3Q2012. Taman Indah Permai registered the highest growth rate at 22.22% (from RM900 per month in 3Q2012 to RM1,100 per month in 3Q2013). This was followed by Ujana Kingfisher with 20% growth y-o-y (up RM200 from RM1,000 per month in 3Q2012). Overall, rents for 2-storey terraced houses are still growing, with all Northern Corridor of Kota Kinabalu City www.PropertyHunter.com.my 41