/// Hot Topic
The Booming of Greater Kota Kinabalu
acres are currently in progress
of being developed. That shows
that almost 60% of the gazetted
land area is under progress. The
remaining 1,017 acres of land are
reserved for future development.
There are 260 entities currently in
operation in KKIP, comprising 223
industrial clusters, 15 research and
development and institutions, and
22 commercial entities.
in Penampang (leasehold; 90%
take-up; average selling prices
(ASP): RM360per sq ft), Taman
Rimba phase 2 terrace houses in
Bandar Sierra, Menggatal (56% at
RM400,000 per unit), and Loft C at
KK Times Square phase 2 in town
(50% with ASP at RM900 per sq ft).
The research firm also noted that
there was a new trend where
condos were becoming more
popular with their variety of facilities
and because they were more
affordable than landed properties
which had appreciated significantly
in the secondary market.
Influx of Foreign Interest
The construction of Kota Kinabalu convention centre begin in Tanjung Lipat with over 100,000 sqft of exhibition space
G
reater Kota Kinabalu refers
to the urbanised areas
surrounding the city of Kota
Kinabalu which is fondly known as
KK. The contiguous built-up urban
agglomeration around Kota Kinabalu
goes beyond the city boundary on
the south side and into the districts
of Penampang and Putatan, and
to a lesser but growing extent into
the districts of Papar (38 km t o the
south) and Tuaran (34 km to the
north).
The term Greater KK is normally
used by the state and federal
government in relation to social
and economic development
planning and strategy such as the
Sabah Integrated Coastal Zone
Management, Sabah Economic
Development and Investment
Authority, Sabah Town and Regional
Planning Department. Greater
KK is also referred to as Kota
Kinabalu Urban Area, Conurbation
of Kota Kinabalu or Kota Kinabalu
Metropolitan Area.
Kota Kinabalu is the main business
hub in Sabah providing higher order
services with an international airport
and a dedicated container port,
making it one of the fastest growing
cities in Malaysia. Promoted activities
under Greater KK encompass
investments in the services,
tourism and transportation sectors,
focusing on education and training,
health and wellness tourism, the
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creative and leisure industry, waste
management, real estate, hotels and
resorts, integrated waterfronts, and
Meetings, Incentives, Conventions
and Exhibitions (MICE).
Growing Population
Based on historical growth rates of
2.42% and data from the Malaysian
Department of Statistics, it is
estimated that the population of
Kota Kinabalu alone will reach nearly
one million by 2020.
Prime areas that are located within
five kilometre of the city centre
are very limited and a lot of these
areas have to be redeveloped and
upgraded as high density residential
zones or mixed used zone. To
fulfil the housing requirement and
demand, the Kota Kinabalu City
Hall (DBKK) wants to increase the
population within the prime area.
In 2013, the Sabah Housing and Real
Estate Development Association
(SHAREDA) concluded that due to
the increasing cost of land, most
landed property developments in
Kota Kinabalu are moving out to
suburban areas beyond 15km from
the KK city centre. Many landed
residential were developed in areas
such as Kinarut, Tuaran, Pulutan
Menggatal and Jalan Sulaman.
On the Rise
By year 2030, DBKK aims to have
100,000 new residential properties
to cope with the expected increase
of population, plus replace transition
houses or squatters and houses
that are dilapidated and not fit for
living.
According to assistant director of the
City Planning Department Stanley
Chong, DBKK wants to encourage
mixed used developments to help
reduce the movement of traffic.
They have identified areas such
as Menggatal and Tepilok that is
considered adequate in size for such
developments.
High rise developments are also
going to be increasing and the
biggest challenge will be to ensure
that the infrastructures such as the
roads, sewerage system, plus water
and electricity supply are improved.
Hwang DBS Vickers Research noted
that there is strength seen in KK
with new condo launches hitting
RM600 to RM900 per sq ft and
some breaching the RM1,000 per
sq ft mark. The research house
which conducted a site visit there
noted that the peak pricing in the
secondary market was RM1,400RM1,800 per sq ft.
Launches in Greater KK also saw
healthy take-ups, for example the
Lido Four Seasons Residences
Sabah is currently facing rapid
economic development, and this
will make it an exciting and vibrant
place for foreigners. The state has
Kota Kinabalu International Airport,
which is the second busiest airport
in Malaysia.
Tourist arrivals have been increasing
each year to the point they almost
doubled every four years. There is
a young and growing popu