Property Hunter Magazine September Issue 2014 | Page 60
/// East Malaysia Property News
Inaugural Sabah Property Report released by Knight Frank
From left; Knight Frank Malaysia’s managing director Sarkunan Subramaniam, Sabah’s Resident Branch Manager Stephanie Wong and Associate Director Ginn Lai
Knight Frank Malaysia released it’s first-ever
Sabah Property Market Report at its new Sabah
branch office in KK Times Square on 7 August,
2014. The report reviews the high-end residential,
office and retail markets in Kota Kinabalu in 2014
and gives an outlook for the second half of 2014.
According to the report, the Kota Kinabalu
property market has remained buoyant and
stable during the first half of 2014 despite recent
negative factors primarily the tightening of
mortgage lending, tariff hikes on electricity and
fuel, and the impending Goods and Services Tax
(GST) in 2015.
The city’s southern corridor would be significantly
transformed with the completion of major
projects this year including Imago shopping mall,
The Loft apartments, OCEANUS waterfront mall,
Pelagos Suites, Riverson and Gleneagles private
hospital – bringing about a positive impact on the
modernisation of Kota Kinabalu.
Mr Ginn Lai, Associate Director of Knight Frank
Malaysia (Sabah Branch) says that they expect
the second half of this year and early 2015 to pick
up in terms of new major development launches
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and announcements, particularly in the new
development precincts of the old Jesselton port
area and TanjungAru Eco Development.
“We are also seeing pressure as a result of land
scarcity and rising land costs which will push
future landed property supply to be contained
outside of 15km from the city centre,” he adds.
The outlook for the second half of 2014 will see
a handful of new residential projects officially
launching. Given a lack of new inventory this year,
we expect take up rates to be solid albeit subject
to affordability and the availability of end financing
to buyers.”
There has been no new supply of new office
space over the 2012 and 2013 period and the
same is expected this year. Pent up demand
for city office space will be met in 2015 with the
completion of several notable projects namely
Menara Hap Seng, Aeropod, Sutera Avenue and
Riverson Suites, totalling approximately 814,613
sqft – an average of 3% new supply per annum.
“Based on current market values, yields are
achieving an average of 5% per annum. The
development of purpose built and signature
offices continues to uptrend and replace
traditional shoplots at Kota Kinabalu’s commercial
sector mature and modernises.”
The Sabah Property Report also mentioned the
unprecedented supply of retail malls that are
coming to completion over the next three years,
adding another 2.65 million sqft (5 malls) of new
supply to the existing 4.6 million sqft (17 malls)
and further cementing Kota Kinabalu’s position as
Borneo’s getaway city.
According to Lai, tenant take up rate could be
slow, but the sector is expected to perform in the
mid- to long-term.
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