Property Hunter Magazine September Issue 2014 | Page 82

/// Hot Topic

Kota Kinabalu City Waterfront

Residential properties in Kota
Kinabalu such as Marina Court,
Jesselton Condominium, Puteri
Damai and Peak Condominium are
priced between RM500 and RM650
per sq ft. This price range falls
within the affordability range of local
buyers and there was no urgency
for developers to attract overseas
investors for take up of these units.
According to a recent report by
Knight Frank on the Sabah property
market, residential properties in
planned schemes in Kota Kinabalu
number approximately 53,956 with
condominiums making up 14,708
(27%) and landed properties 39,248
(73%). An estimated new supply of
4,318 condominiums are coming
on stream over the next 3 years
and with no significant landed
developments in the pipeline, which
is attributed to rising land cost and
scarcity of land, we will see a bigger
push to develop upwards.
Prices for high-end condominium
properties have achieved significant
increase with the completed Peak
Vista I & II selling for between RM850
to RM1,200 per sq ft. Two more
developments that are expected
to be completed in the city’s CBD
in 2015 that are within this range is
the Pelagos Designer Suites priced
between RM800 and RM1,000 per

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sqft and Jesselton Residence going
for between RM750 and RM1,200 per
sq ft. The Knight Frank Kota Kinabalu
report goes on to say that residential
properties over RM1 million per unit
has actually achieved the highest
increase in volume transaction in
2013, 22.4% up from 2012 and this
trend is expected to continue in the
future. The report singled out the
d’Banyan Residency @ Sutera in its
landed property category with a subsale price between RM3.2 million and
RM4.8 million for its villas.
Sabah has been very content with
the take up of its properties by local
investors but the recent cooling
measures by the central bank to
curb speculative property investment
will make it increasingly difficult
for local buyers to purchase these
high-end residential properties.
This will prompt the property
developers to start venturing out to
the international market to attract
foreign investors.
But is Sabah ready to play ball with
the big boys? Kuala Lumpur, Penang
and Johor Bahru have been active in
the property development market
targeted at overseas investors. And
the property developers there have
more thickly padded pockets and
more importantly, experience and
understanding of foreign investor

expectations of their potential
investment.
Adding to this is the more advanced
development of communication
networks, public transportation
systems, and availability of
prestigious international schools,
hospitals, shopping and recreational
centres to cater to the high quality of
life demanded by overseas investors.
In term of price for high-end
residential units in Sabah, and Kota
Kinabalu in particular, it is reaching
or already on par with the more
matured property markets of Kuala
Lumpur, Penang and Johor Bahru.
Its expanding population with an
estimated growth rate of 2.4%

per annum would see an increase
of 11,000 citizens a year and a
corresponding increase in demand
for housing developments in the city.
Ginn Lai, Associate Director of Knight
Frank Malaysia (Sabah Branch),
says that as the rest of developed
Asia struggles with heated property
markets, Sabah is at the tipping point
with a confluence of Borneo’s unique
offerings and strong property drivers.
“Sabah today is well on its way to
becoming an international hotspot
for travellers and savvy investors,” he
adds.
Blessed with an equatorial climate
of year long summer days, amazing

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