Greater Kota Kinabalu

by CKWong

Sabah especially city of Kota Kinabalu expected to have another great year for the year of 2011. A lot of people expected KK property mart to downturn but it has been constantly proven that they are wrong. I remember back in 2007, a lot of my clients believe that “crisis” will happen every 10 years. But it does not happen in 2007!!! That time our terrace house prices are in the range of RM250K (average of 2000sf), despite “financial crisis” in 2008/2009 our terrace house still on uptrend mode and surprisingly has exceeded RM350K an increase of 40% especially for existing or sub-sale market. Not only that, the whole picture getting uglier if you compare with newly launched properties whereby the prices are easily exceeding 50% with smaller land size. In general, newly launched houses in town are prices between RM380K-RM450K with land area of less than 1700sf (20sf x 75sf). This has eventually benefited sub-sale market!!!   

Overview of 2011 for KK properties

Residential market

In general I still strongly believe our residential will continue to do well. Rental market especially for selected area will continue to hold strong and appreciation will remain steady.

For non-landed (ie condominium & apartment) at matured area namely:

Likas-Indah Court, Lucky Height, Dah Yeh Court, Likas Court, Radiant Court, The Peak

Luyang- Hilltop Apartment, Fairway Mansion, Luyang Perdana Town house

Beverly Hill- Beverly Hills Apartment, Tmn Penampang

Penampang- Eden Height, Rainfield Court, Ganang Villa  

Landed properties in general will continue to command good price due to high demand due to location, bigger land size, bigger built up and some with 999 titles. Rental yield for landed also remain steady for 2011 whereby I believe it will command better rental in the range of RM1k-RM2K depending on furnishing and location while selling price commanded will remain above RM350K-RM450K or even above RM0.5M! Preferred location will be more on matured area ie Luyang, Damai, Kingfisher, Kingfisher Sulaman, Penampang, Bundusan, Likas, Kolombong & Putatan area.

Commercial property

Is there an oversupply for our commercial property? Frankly speaking, I can’t answer this question. If there is really over supply, new project launched will not be so hot. The best example would be, KK Taipan whose started selling back in late 2007 for less than RM800K per block (1200sf x 3 storey, intermediate unit). Today it was transacted not less than RM1.3M with potential rental of RM6K per block. Not only that, 88 Market Place along Kepayan area sell for RM700K for 2 storey shop lot was transacted for more than RM1.22M last month with potential rental of RM5.5K-RM6.5 per month!!! So whether you think the market is saturating or not that is YOUR PROBLEM!!! The rich will continue to flood the market and continue to invest even though the rental yield is lower. But the fact remain, as long as the rental yield above our current FD rate, the rich will continue to invest in property market knowing it’s the only proven way to fight against inflation.

Focus in 2011 will be…

Residential – For those who want to accumulate property for rental collection you can focus more on residential mainly on area like Beverly Hills Apartment, Api-Api Apartment, Grace Court, Indah Court, Likas Court, Lucky Height, Hilltop Apartment or in general Non-landed properties below RM300K. While those who has a bit of capital you might consider landed properties at matured area like Likas, Damai, Kingfisher, Penampang, Luyang & etc as the rental yield is on uptrend more while sub sales is getting lesser due to increasing of owner occupancy.

Commercial – The best if you can accumulate at un-matured area especially these below RM1M for 3 storey shop lot / 2 storeys. Other than that, warehouse are under-supply in the market causing rental remain high at RM1 psf especially matured area like Kolombong. Last week there is owner wanted to sell his land at Kolombong area for RM95psf even though the land tenure is less than 17 years!!! With extention premium of RM15 psf (estimated), land price within Kolombong will remain steady above RM100 on average. Will there a buyer for this kind of land? Wait and see then…

Concluding my view for 2011, I’m very conscious on the “entry cost” of any of residential and commercial investment. I preferred to shy away from non-landed properties which prices above RM400 psf which I believe KK are not ready for it. While for commercial properties, growth area would be more focus on NORTH area especially along Kingfisher, Sulaman highway, Tuaran by-pass highway, & Menggatal. Big company like Pang Sheng, Permaju  Bhd, Wah Mie, Wong kwok & Hap Seng is on the way to facelift the whole place and transform it into another half of KK’s. With the flush in of oil palm money and spillover effect, I personally hold strong confident on our property mart especially the next 5 years. The rules in 2011 remain that is “Buy & Wait” not “Wait To Buy” Happy Investing.

 

You cannot Grow Land..CK Wong & MY RiCH DAD

 

button Greater Kota Kinabalu

Related posts:

  1. Greater Kota Kinabalu 2011
  2. Win-Win Property in Kota Kinabalu
  3. No Property Bubble in KK Part 1
  4. Condominium In Kota Kinabalu
  5. Shopping Mall in Kota Kinabalu

{ 44 comments… read them below or add one }

simon December 30, 2010 at 1:03 am

I am start lacking interest on your blog.
reason is not you are not giving good content. But, you are mainly/99% talking about EAST. I am not sure most of your reader are EAST or WEST, maybe I am only the 1% of WEST that favorite you all time.

But I hope you may talk about WEST or General topics, your real life sharing experience is excellence.

Reply

CKWong December 30, 2010 at 11:46 am

Hi,
The mountain never move, only human move. The principles in life is SAME everywhere..you eat same right as what I eat..Nothing make different between W or E!!! Im giving you all the CONCEPT and IDEA using my E idea/story..my dear friend..use it, learn it and practices the IDEA behind my story..I’m not a story teller…Happy Investing.

You cannot Grow Land..CK Wong & MY RiCH DAD

Reply

Ryuken December 30, 2010 at 6:04 pm

Hi Simon, can you find me a blog where the writer is from residing in the west but talk about the east?

If you find it please share it here, as we would like to know other people opinion for our EAST property market. Currently Kota Kinabalu, is booming, I even read an article in Iproperty recently http://www.iproperty.com.my/news/2886/Gold-Rush-in-the-East stating that a lot of developers (SP Setia, WCT, IJM) from west is coming to KK to build properties here, and that Sabah is the fastest capital appreciation state in Malaysia, beating KL and Penang, so better come and have a look here.

Reply

Irwan Dahnil December 31, 2010 at 1:22 am

The blog domain is investkk.com … KK = kota kinabalu.. Surely it will talks about more properties in E than W :)

Reply

jenkazama December 30, 2010 at 12:17 pm

Hello sifu CKwong.

How about inanam area?

Reply

Taiko January 12, 2011 at 11:56 pm

I heard Jusco is planning to be set up its hypermarket in front of UMS or Alamesra area. So the spillover effect will be tremendous for Kingfisher areas in the coming years.

Reply

jenkazama January 13, 2011 at 11:25 am

WOW. Really?

Reply

paul poh January 19, 2011 at 9:16 am

Sifu CK Wong,
I had learned about your blog today and immediately I am hooked and subscribed to it. I wished I had known about your informative blog much earlier. Not only it is easy to read and understand for a layman it is full of logic and it makes sense for a simple mind like mine.
Basically, I am a novice investor trying to invest in my old age. Appreciate if you could advised me on what i heard on the grape vine that someone is plannind to build a block 30+ storey high end condo near the junction Jalan Pasir and Jln Tuaran, over looking Likas Bay.
Apparently, the 30 storey condo will be built on 0.5 acres of a 3 acres+ gradual slope hill land. The first 5 floors are for residence car parks and the swimming pool and other condo facilities on the 6th. Residential units stasrt at the 7th floor onward. All in they will be about 130 units of 3 bedrooms of various sizes from 1400-2000SF.Prices from RM450 – 550. I was thinking of investing in it but as usual I am at a lost and don’t know what to do? Particularly, after reading your Greater Kota Kinabalu articles you said “I preferred to shy away from non-landed properties which prices above RM400 psf which I believe KK are not ready for it.”. The condo is scheduled to be completed in 2013. Do you think KK is ready for it by then.

Old but novice investor.

Reply

CKWong January 19, 2011 at 12:33 pm

HI,
The rental yield for non-landed is not ready. It might be only around 3%-5%..Its not easy to rentl condo at the price of RM3k-RM5K now especially inmatured market like KK. If you already prepare to spend RM700k-RM1M, you might consider commercial property for better appreciation and rental yield. Happy Investing.

You cannot Grow Land..CK Wong & MY RiCH DAD

Reply

paul poh January 20, 2011 at 7:14 am

Hi Sifu CK Wong,
Thank you for your speedy advise.
However, what would your advise be base on the following facts and assumptions of the Likas bayview condo?
Facts : 1)The developer is a dear friend.(2)Though the DP had yet to be approve 70% of the 130+ unit had been booked.(3) Upfront I was given a 5% discount.The 11th floor 1800sf unit would cost me RM810K @450psf.
Assumptions :
1. Projection : By end 2011 the piling work should be done. 20% Capital outlay (RM162,000).(2). To sell the unit @ RM540. A handsome 20% profit in 12 months.

Is this a realistic projection or am I living in Disney Never Never Land ?

2. To sell the unit by end 2011 or early

Reply

CKWong January 20, 2011 at 10:30 am

HI,
I’m abit doubt over the condo prices after 2012. If you want to be sure the real price of condo in KK, wait till The Peak Vista Block A ready for occupancy/rental. If the pick up rate is good ie rental yield is high and reasonable…then I believe the condo prices will be stable and rise slowly. If the demand is slow and low, this indicating the market is not ready for RM450/RM500 psf even at prime location like Likas & Signal Hill. Happy Investing

You cannot Grow Land..CK Wong & MY RiCH DAD

Reply

Anonymous March 25, 2012 at 6:22 am

Hi CK,

Though rental yield may not be ready for non-landed properties, as you might have noticed, in the last few years, well managed condominium developments with sea views in prime locations have yielded good returns and price appreciation of the property. Especially with the picking up of business and transactions in KK, China cash rich investors, Japanese investors fleeing from their own country and preferring Malaysia as their second destination, people from overseas, KL, Sarawak, oil and gas companies etc. would prefer rental for these condominiums since they can just pack up, lock and leave the place with security in check. That is why I would think otherwise that condominiums will be an increasingly preferred way of living and also rental from here on.

Reply

CKWong March 25, 2012 at 11:32 pm

HI,
I hope so. But in fact, the main thing that concern alot of outside people coming is our politics stability and our policies. It seem like most of them love our country but our Malaysian not loving their own country that much!! Happy Investing.

You cannot Grow Land..CK Wong & MY RiCH DAD

Reply

David January 19, 2011 at 2:49 pm

Hi Paul,

do you know the name of the developer of the condo you mentioned and also any address or office number to contact? I would like to get more information to invest in this. I would appreciate a lot if you could share more info with us :)

Reply

paul poh January 20, 2011 at 7:21 am

Hi David,

I would share with you the developer’s name once they had been given the DP and whatever other government redtape they is to do.

Do you think I am dreaming in my today reply to Sifu CK Wong?

Reply

Joe Lee January 20, 2011 at 9:00 pm

I think the project is the bay and the developer’s name is Francis Wong.

Reply

CKWong January 21, 2011 at 11:55 am

HI,
One of the director. He is one of my ‘sifu” also. Happy Investing

You cannot Grow Land..CK Wong & MY RiCH DAD

David January 22, 2011 at 4:06 am

then there is nothing to hide about any information

developer is Unique Flex if you guys are talking bout The Bay Residences condo

paulpoh January 23, 2011 at 11:31 am

Hi sifu,
I am glad to hear that one of the director is also your sifu. I understand that clearer condo pricing will immerge after The Peak Vista Block A is ready for occupancy/rental. Do you know when will it be? are they high end condo? (I am not from KK/Sabah I don’t live there either.I just loved KK. Please do forgive me if i asked stupid questions).

Question is can one compare Peak Vista Block A with Bay Residence? To me Bay Residence is a high end fully furnished ultra modern condo. Very low density of only 130+ units occuping on a 0.5 acre out of the 3++acres land area. The entire remaining land will be used for the benefit of the residences only.

JENKAZAMA January 22, 2011 at 4:17 am

David,
Seems that there are insiders here.
That’s how to play the game.

Reply

CKWong January 22, 2011 at 8:48 am

HI,
Its always insider games anyway.. That why I seldom purchase new constructed property due to:
1. Cant collect rental directly
2. Maturity risk
3. Completion risk
4. Cannot Discount/purchase below market value
5. Extra costing on interest
6. Etc.. Happy Investing

You cannot Grow Land..CK Wong & MY RiCH DAD

paulpoh January 23, 2011 at 11:35 am

hi David,

I am not trying to be secretive but try to understand i am not in a position to disclose the identity of the developer when their DP had yet to be approved.

Reply

CKWong January 23, 2011 at 7:26 pm

HI,
There is no secret Paul. The developer has been promoting all over town. As I met the developer, they are focusing on the (software) marketing first rather than hardware (DP). So this is the their strategy. So no worry. Happy Investing.

You cannot Grow Land..CK Wong & MY RiCH DAD

Reply

David January 24, 2011 at 2:03 am

hi Paul,

i didn’t mean to be harsh from my statement but I would definitely share with you guys if I know of any new development in the city like how CK Wong has shared his knowledge with us. It’s nice to know more new developments in the city and I’m looking forward for Likas Bay area to grow in the future comparable to Gold Coast

Reply

paul poh January 25, 2011 at 1:32 am

Hi David,

None taken. You seem to be aware of the Bay Residence condo. Would you invest in it?
Any comment of my posting on January 20, 2011 at 7:14 am asking Sifu CK is it realistic to hope to be able to sell my unit for RM540psf ? Or i am just plainly living in Disney never Never land!

Reply

Alfred March 26, 2011 at 3:09 am

Hi CK,

I m a beginner in property investment.
wonder how is your view at area around Putera Perdana which is surrounded by Bandar Sierra and PutraJaya (3km near by before telipok area) . it seems a lot of housing development there due to 15minutes drive to 1 borneo, university and KKIP. and the pricing is more affordable for me such a beginner in property investment. The housing there cost ard RM 250k (terrace intermediate 4 rooms – 22ft x 80ft) and RM 400k (semi D – 37ft x 80ft).
Appreciated your view sharing.

Reply

CKWong March 26, 2011 at 3:41 am

Hi,
Rental market is still nit matured, personally I prefer to avoid non Chinese or less chinese populated area as this will drag down the potential appreciation. Happy Investing

CkWong

Reply

DC March 29, 2011 at 7:29 am

Hi CK,

I saw on the news. International Technology and Commercial Centre Penampang is going to be launched. Any idea where is the exact location of this project?

DC

Reply

CKWong March 29, 2011 at 11:24 am

HI,
After CKS Dongongon bypass. Happy Investing.

You cannot Grow Land..CK Wong & MY RiCH DAD

Reply

Fen June 29, 2011 at 7:51 am

Hi CK,
How many followers do you have?

Reply

Christy August 7, 2011 at 11:17 am

Hi, just wanna ask is it worthy to purchase the Eramas double storey at Dongongon at RM340k?

Reply

CKWong August 7, 2011 at 7:38 pm

HI,
Looking at your email..I expect you are from Tawau? So what for you buy the house?Investment or own stay?Rental or capital appreciation? Where you work if you are at KK? Anyway there is alot of factor to consider. Let me know more about yourself first before I can help. Happy Investing.

You cannot Grow Land..CK Wong & MY RiCH DAD

Reply

Ling October 20, 2011 at 3:55 am

Hi CK,

I’m new in property investment. I need advice in property investment. Is it worth to invest in low cost apartment such as sri maju in sepanggar as the demand for renting is high around RM500 – RM650. Mostly the potential tenant are politeknik, Uitm students and also government servants working in PutraJaya. The actual price of the apartment is around RM43000 and they are selling at RM80,000 to RM85,000. Any risk to buy this low cost apartment? What the market will be after 10 year from now? Hope to hear from your advice.

Reply

Ling October 20, 2011 at 4:11 am

Hi CK,

I’m new in property investment. I need advice in property investment. Is it worth to invest in low cost apartment such as sri maju in sepanggar as the demand for renting is high around RM500 – RM650. Mostly the potential tenant are politeknik, Uitm students and also government servants working in PutraJaya. The actual price of the apartment is around RM43000 and they are selling at RM80,000 to RM85,000. Any risk to buy this low cost apartment? What the market will be after 10 year from now? Hope to hear from your advice.

Reply

tiong January 19, 2012 at 11:38 am

hi Ck,

I m new investor in property ..i need your advice about 1-Sulaiman condo , I buy at 230k level 21 but now my situation is whether want to sell it off or keep it for future growing market …

Reply

CKWong January 19, 2012 at 11:49 am

H,
Up to you. But if you really got such many residential underw our portfolio..I think you should switched to commercial for better return and rental yield. But if you have only one??. Just keep it..Happy investing.

Ckwong

Reply

KC April 21, 2012 at 4:20 pm

Hi Tiong,

are you still planning to sell your unit at level 21? If yes, please contact me, we can talk further. Thanks…

Reply

Tiong April 22, 2012 at 10:53 am

Yes kc , if there is a good price then I won’t mind to let go ..do contact me if u r serious buyer

Reply

sue stokes January 27, 2012 at 6:41 pm

I am very keen to consider opening a real estate company in KK with a good local partner whereby innovative marketing and sales would make it more professional and up to speed, especially with the web marketing as i have the resources… is anyone interested ?

Reply

Vincent July 15, 2012 at 3:55 pm

Hi sue,

Is ur offer still on? I would like to find out more, Tq

Reply

christopher July 9, 2012 at 11:57 am

Hi there
I’m new to kk. Planning to buy n stay in kk once my office move. Is rh residence worth the buy at 580k @1722sf.

Reply

CKWong July 12, 2012 at 12:27 am

HI,
If you notice there is one cemetry in the middle of this project. I’m not keen on this area. Anyway if you buy for own usage, should be ok..but if you bought it for capital appreciation and rental..I think its required big cashflow to turnaround. Happy Investing.

You cannot Grow Land..CK Wong & MY RiCH DAD

Reply

christopher July 12, 2012 at 11:41 am

Hi ck thanks for your feedback. Do you know if rh residence in.sulaman built on mountain or swamp land?

Reply

CKWong July 13, 2012 at 12:48 am

Hi,
The whole project is below the road, that mean its at “high side”..very small hill. Unless you bought the end lot at the back otherwise should be ok. But better go and view yourself there first. The actual picture should be clearer. Check on the beam, road and the drainage. If you notice there is cracking then better avoid. Happy Investing.

You cannot Grow Land.. CK Wong & MY RiCH DAD

Reply

Leave a Comment

You can use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Previous post:

Next post: