Condominium In Kota Kinabalu

For the past 2 week, I have heard 3 condominium projects launched surrounding Signal Hill with selling price not less than RM400 per sf. The best part for developer is that they sold out in less than 2 hours and some even fully registered before launching.

One of the listed company known as SBC Bhd gets all their unit registered before 10am after they start at 9am. Another new condominium project expected to be launched in the middle of this month located in front of Wisma Perindustrian is even better – fully registered and taken up without any brochures.

Have you wonder why all new coming condominium development will continue to command higher price yet buyer will keep buying?

By middle of next year, I foresee double storey terrace house at reasonable location with land area of less than 1800 square feet will exceeded RM400K. Developer will not be so kind to sell their terrace house lesser than this amount due to the land costing effect.

Good location especially around Damai, Likas, Luyang, Iramanis, Kelombong, Penampang and Kingfisher will continue to command good price but will developer construct double storey within this few area? NO!! Within this hot area, for sure developer will develop 2 ½ or even 3 storey house with prices will be not less than RM700K.

I believe majority of the developer will maximize their land for condominium or apartment development especially area like Signal Hill and Likas. This is located only about 3KM to town with potential sea and Mountain View. All newly launched condominium at Signal hill area last month commanding prices of not less than RM450 per square feet and mark my words it’s going to be more for coming new condominium development within this area in next 6 month.

Time has change. Younger generation has different concept and living style. This group of young professional will demand a different living style at “signature address” especially glamour place like Signal Hill and Likas, while in KL are places like KLCC and Mont Kiara. Not only that, condominium which promises one stop lifestyle living also provide plenty of facility like gym, tennis court, badminton court, swimming pool and BBQ area.

But bear in mind, the more facility given the higher the management fees is going to be. So watch out when you buy condominium as the fees itself will kill you if your investment turns sour.

Lately I saw old generation also moving to condominium due to security reason. So everyone is accepting the condominium concept which will lead to the higher demand especially new place like Kota Kinabalu.

Dear all, remember what I told you today, human wants hassles free and convenience when it comes to purchasing property. Developers are tapping this market thus providing smaller units, fully renovated unit, fully furnished, and of course with attractive bank interest package to make sure all of us bought their unit without any doubts.

Bank will continue to support as younger professional are financing all the above under one roof. This solves all the hassle of renovation, shopping for furniture and shopping for lower bank interest. No doubt developer is enjoying extra profit from their effort but its hassle free for you.

Within the next 2 years I can assure you all, Signal Hill area and Likas area will be the main development area which developer will attack for luxury condominium. Prices of condominium will continue to rise depending on location, view, design and concept. Please don’t hope for cheaper and lower price when you talk about Signal Hill and Likas.

But one thing that doubt me so far is whether the rental market is going to stablize at 7%-10%? Not likely, in developing country rental yield will drop when property price when up. Like in HK rental yield is only around 3%-5%. Therefore, for those who bought luxury condominium for rental collection, watch out.

I notice that in KK, the market for rental of RM5K per month is tough unless our government really promoting MM2H and attract more foreigners to come in. Otherwise, pray hard if you already bought it for rental collection.

Happy Investing.

You cannot Grow Land.. CK Wong & KH Wong

Related posts:

1. Win-Win Property in Kota Kinabalu
2. Greater Kota Kinabalu
3. Relaunch of Pacific Parade, The Heart of Kota Kinabalu
4. Shopping Mall in Kota Kinabalu
5. Greater Kota Kinabalu 2011

Tagged as: Condominium, high price, rental