Back in 1960’s when one of my business associate parent’s came down from Kudat with RM4000 in hand with intention to purchase vacant land at Kolombong area. But after seeing and visited the land personally, he decided to call-off his intention as the land is swampy and flooded. At that time the seller is only asking for RM500 per acre @ RM0.011 per square feet. Last month one of my client continue buying land at this area for not less than RM60 per square feet @ RM 2.6M per acre with land tenure remaining around 25 years. Why they continue buying knowing the land tenure going to expired 25 years from now? They bought it for a reason.
Kolombong area in Kota Kinabalu is known as industrial and warehouse area since early 1980’s. The location is about 10KM from city centre and surrounded by mostly residential and commercial. Most of the residential are including Taman Kolombong, BDC, Taman Khidmat, Pearl Tower Condominium, Taman Nelly, Nounton Apartment, Taman Bayumas (almost completed), Taman Segar, Taman Saga and etc. While commercial usage mostly occupied by big boy like Harrison, Sebor, Proton, CCM, Pharma, Hume Industries, Tan Chong Group, Toyota Group, Honda Group, Proton Group, local car dealer, heavy machinery business and etc. All of the above crowd and customer base will continue to flooded this area in return will support the growth of retail and wholesales activities.
If you drive around Kolombong area nowadays, land for sale is virtually none. And even if there is, the price will be spicy and of course you have to bear additional premium to extend the land tenure. Thus the initial cost is not going to be cheap and low. Recently one of my clients purchase one pieces vacant land for RM60.00 per square feet excluding premium of RM25 per square feet (estimated) to extend the land tenure back to 60 years leasehold. Thus any development constructed will sell for not less than RM250 per square feet for them to stay profitable. On average, double storey semi-light industrial with land area of 5000 sf will easily commanding prices exceeding RM1.2M per unit with potential rental of RM6000 per year or 6% rental yield per annum. That why you will see steady growth of warehouses and industrials lot at this areas in the near future.
To own a unit of warehouse cum retail unit is a dream of business operator if there is such development. A lot of business operator is moving away from conventional shop houses due to various reasons. To name few:
- The biggest problem for shop house is car park. Without proper car park space you will loss a lot of customer.
- Low utilization of the area, as retail activity is only within ground floor area (1200sf) whereas warehouse cum retail unit are operating within the 5000sf (ground floor alone)
- Expensive rental per sf, a unit of ground floor easily commands RM2500 @ RM2.10 per sf compare to warehouse which is around than RM1.00.
With the opening of new bus terminal at Inanam via Tuaran by pass highway, the crowd within Inanam and Kolombong will rise further. As I always say Inanam is our second most crowded town after KK. Why I say so? Simple, Inanam is township that has most complete banking facility. Which local bank didn’t open their branch at Inanam? Even Papar and Tuaran didn’t have such complete banking. The best part is some local bank like Public Bank and EON bank will move to their new premises next few months which show business growth at Inanam is tremendous. In addition to that, government is trying to link up Sulaman Highway, Tuaran Highway and Menggatal Old Road via middle road near Taman Inanam Laut to New Inanam Bus Terminal and all the way up to Taman Permai (Master development by Sinar Penbangunan). With the completion of all this bypass and road, Kolombong will definitely not left behind.
In summary, Kolombong is lacking of vacant land for development, rising banking activity and tenanted by MNC, car dealer, major trading activity area, forwarding companies and multi usage of the unit. So you might consider adding this type of property into your portfolio for potential rental and capital appreciation. Happy Investing.
You cannot Grow Land..CK Wong & KH Wong
Related posts:
TNBC Motor Sdn. Bhd.
Lot 1, Neutron Point,
Jalan Lintas Khidmat,
Kolombong, 88300
Kota Kinabalu
Tel: 088-438000
Fax: 088-439000
{ 61 comments… read them below or add one }
What is your advice on investing on Duta Garden’s 3-storey duplex residential unit? It is located along Jln Bundusan & the entrance is opposite JPJ. The price is $360k onwards. Phase 1 is fully sold. Phase 2 still available. The developer is Panasaran Pelangi S/B & they have a website http://ppelangi.com.
Thanks.
HI,
You buy for owner occupied or investment? Happy Investing.
You cannot Grow Land..CK Wong & KH Wong
Mr Wong,
Thanks for your valuable tips. I would say most chinese will not share such tips with others cos they want to enjoy all the wealth by themselves, you r one of the rare generous ones. I am not a chinese basher for I am one also.
After reading some of your articles, my husband & I become keen to invest in an apartment for rental. We already bought a terrace house for our own dwelling purpose, still owe bank RM90K house loan. Anyway we want this apartment to be at popular area like Kolombong & Bundusan. After some googling, we have 2 places in mind :
1. Bundusan Villa
2. Nounton Apartment
My questions are :
1. Can u offer advise on the pros & cons of these 2 places?
2. Which floor usually can fetch highest rental? Ground flr some said dirty cos tenant at upper flr throw things down, 2nd flr better? 4th floor too high?
If it is too long to ellaborate here, pls email me redyoyo20@gmail.com
Thanks a lot!
Hi,
I prefer Nounton apartment as its near to Kolombong area which will fetch stable and steady rental due to less numbers of unit. While Bundusan villas has to compete with huge numbers of unit from Beverly HIlls and Tmn Penampang. At all time 1st floor of walk up apartment will be the best choice as its not too high and not too low. Happy Investing.
You cannot Grow Land.. CK Wong & KH Wong
Dear CK Wong,
My sister is renting a 2nd floor apartment in Nounton Apartment. Understand that the rental is in the range of RM550 – RM650 and some of the owners are selling the units for RM135k – RM165k (depending on which floor). Do you think the value of the apartment unit will increase in the next 5 years?
Hi,
Yes. Industrial & commercial property at Kolombong has appreciated very much for the past 18 months. If you notice trafic jam always happen around Kolombong area especially road connecting to Lintas Highway (nearby Universal Motor). This already indicating residential prices will appreciate soon. Happy Investing.
You cannot Grow Land..CK Wong & KH Wong
CKW,
I cant help but feel many parts of roads are jammed up partly due to inefficient use of the traffic lights ie green at one part then red in front so the green at the back also cars will not move, unlike singapore.
secondly, like some bottleneck roads (near tmn daiming baru roundabout), there is ample and unused road reserve by the side but not extended another lane to accomodate the growing car population but u r rite that growing means getting more popular but i tot the whole kk is also growing i.t.o. car population ,no? hehe
dont have to wait for 5 yrs. merely 5 weeks is enough. Someone bought Nounton 2 apt for 195k fully renovated w/ furnished.
HI,
Good…more to come, I saw alot of development started already along Tuaran highway moving towards Menggatal. The games just started.. Happy Investing.
You cannot Grow Land..CK Wong & My Dad
Hi,
What’s is your opinion on vista kiranau apartment at Donggongon for investment ?
The place is a bit far, price for 850 sf start from RM 161k.
HI,
Sorry I’m not familiar with apartment at Donggongon area. Perhaps you should try somewhere nearer like Beverly Hills. I bought my Likas condo for less than RM115K 4 years ago. The location is fantastic but the developer fail to bring up the value but I saw future value is tremendous, that why I bought it. Happy Investing.
You cannot Grow Land..CK Wong & KH Wong
hi,
what is your opinion about Taman Cerah in Menggatal in terms of future investment and dwelling purpose? End lot cost RM440,800.
If I remember correctly, this location is about 1KM away from Futsal stadium. For RM440K, I prefer buying Corner lot at Kingfisher as the whole housing is surrounded by few thousand houses, Hospital and schools. I strongly believe this area commanding better appreciation value with stronger rental market. Happy Investing.
You cannot Grow Land..CK Wong & KH Wong
Do you think i still can get 30% profit out of this in the future?
Hi,
Double Storey price will hit RM400K and above next years if you talking about good location like Kingfisher. So to make 30% for corner unit at Kingfisher, I think its quite easy. Happy Investing.
You cannot Grow Land.. CK Wong & KH Wong
err…. i was talking about 30% profit from Taman Cerah….
Dear CK,
“Double Storey price will hit RM400K and above next years if you talking about good location like Kingfisher”
Intermediate or Corner Lot?
10Q
aint some good location INTERMEDIATE double storey already break the 400k price barrier? such as Tmn Bestari, Iramanis, luyang perdana, etc. (even tmn sri manis? asking for 470k =.= or that was corner…shrug)
Dear CK,
As an investor, what do you think of Taman Sri Manis at Kolombong area for investing or dwelling purpose?
As a developer, is it worth to invest a RM40/sf land with CL999 under residential zoning (B) worth to buy land nearby Taman Saujana and Taman Sri Manis area? Do you think this type of land which has 80% flat land and 20% hill land will suit for which type of property in the market for next 3 years? Will condo project or SD or like Duta 3 storey townhouse able to excel?
HI,
Zone B vacant land are allow to construct around 40Units of condo pr apartment per acres. Its a good buy if you can find flat land at this area. Of course if there is mountain view even better. But this might need huge acquisition cost. You need to start your development plan immediately after you acquired the land to save cost. Happy Investing.
You cannot Grow Land.. CK Wong & KH Wong
hi CK,
Recently, i had put a deposit to confirm a property at Taman Nelly phase 9 kolombong. It is a intermediate corner. Renovated but no kitchen extension (which i preferred it to be as i do not like kitchen too big as hard to manage). Very well done with inside renovation and auto-gate and nice garden at the side. No need to worry about renovation after buying this house. I can say, prefect move in condition.
The things that i am concerned right now is that the selling price is 340k. I got a valuer to value that house and it is only 250k which is quite surprise me alot as there say it will cost less in valuation if there isn’t any build in cabinet and extension of room/kitchen.
Do you think it is a right choice to invest this property? Am i paying for a high side. Should like not invest and forget about the deposit which i had pay 10k for. From my understanding on research of properties this one year, it is no more cheap. A new house behind bukit padang and small in size (intermediate) cost around 320k. Anywhere i will not stay as will rent it out for maybe 1200 or less per month so that it would cover part of my installment.
Do you think it is worth the price since house is getting more and more expensive.
I hope to hear your reply soon as i will be getting the reply from the bank loan soon.
cheers and many thanks!
Winson
HI Winson,
For your information, I havent bought any p[roperty for investment exceeding RM250K as for my opinion, above RM250K property will fall into different costing and its quite tough to rent out. Landed property is getting more expensive, but single storey (if I’m not wrong) at RM340K is too expensive. If you want to buy for investment please watch out your costing and monthly repayment. Bear in mind, rental for landed property is not as good as non-landed.
Winson,
One thing for sure landed property is getting more expensive with your RM340K you can get double storey house at prime location like Kingfisher easily. So next time better consult few people or family members first before you commit your decision. This is expensive lesson for you to learn. I dont know what decision is good for you now. But make your wise decision. For me I will drop this case. Happy Investing.
You cannot Grow Land.. CK Wong & KH Wong
“Bear in mind, rental for landed property is not as good as non-landed.”
___________________________________________________
Mr CK Wong,
Why do you say so? I’m keen to know. Landed property has a proper title while non-landed has only strata title. Pls ellaborate. TQ.
Hi,
In time to come I will explain further. Continue explore my blog for more information and try expand your mind further with your own experience. Happy Investing.
You cannot Grow Land.. CK Wong & KH Wong
hi,
I had decided to buy taman nelly phase 9 as part of my investment.
Since property in KK is still booming and i believe in the next 10 years, KK property would be extremely expensive (similar to KL).
And moreover i am renting this out. Eventhough the rental will not fully cover my installment, but i will feel secure compare to my money where it parks in the bank. So, buying this property is harmless since renting it out could have help me in my financial statement.
I may or may not sell this property in future but i again believe that the property market will NOT goes down to drain. I wish this property that i bought will bring me Good Luck too
That is my 2 cents:
cheers!
Winson Wong
Hi Winson,
Its good to know that you started your investment early. I just come back from auction and help my friend from Sarawak to aquired another property for rental collection. Hope he will be more brave after this. Nothing goes wrong with calculated risk. Happy Investing.
You cannot Grow Land.. CK Wong & KH Wong
what do you think with Indah court 1st floor RM210K and currently rent out RM950 to student and Hiltop Apartment RM250K with rental RM1250? which one will you consider?
HI,
I will consider taking Indah Court compare to HIlltop Apartment. If you notice nearby Indah Court government going to build “Wisma Pendidikan”. It going to serve all administration of school and teachers for state of Sabah. Furthermore there is another pieces of land which measuring about 16 acres already sold to tycoon from Sandakan for RM37M cash. He expected to build mix developement comprising condominium and commercial next 2 years. Development plan now is under drawing. All this will push up Indah court maturity in terms of rental and market value next 2 years. Happy Investing.
You cannot Grow Land..CK Wong & KH Wong
Visited Metrojaya /Suria Sabah today but it seems to cater for the “rich and famous” clients and wonder whether it has any impact on CPS (which cater for middle and lower income group) in the immediate future? I have a friend who sold RM270k for 180 sf in CPS recently and it seems CPS are selling at RM1,500 psf for 1st floor shoplot. Your comment?
HI,
CPS will continue to enjoy the crowd coming years but the number sure will detorate in view of increase numbers of mall. But like you say, this mall is for middle to lower end which consist of 90% of the people. Demand will always be there. Happy Investing.
You cannot Grow Land..CK Wong & KH Wong
I have a friend who wish to sell his Kolombong 3 storey shophse at RM450k but it’s leasehold ends at 2043 . He paid RM180k premium for a 60 year period in 1984. Why is the premium so expensively that, the cost is as much as apartment? So better buy a 999 years property as the premium may kill you. Are there any such 999 property nowadays in KK?
Hi,
Some of the Industrial shoplot located at Bundusan still have 999 titles. Happy Investing.
You cannot Grow Land..CK Wong & KH Wong
I was just asking myself why i liked property and real estate? Is it just about buildings and land? Well, it is more to it. It talks about the changing taste, lifestyle of a growing population. Some people call this population dynamics as it evolves with the mass economy and buying power of a nation.
Look at shopping malls. People are becoming more affluent and able to choose what malls to frequent, what malls to skip. Introducing 1borneo and metrojaya here in KK has indeed introduced new taste buds to sabahans. In fact more are yet to come as plans begin to unveil in the coming year. Enjoy.
HI CK,
I am looking at a 2nd floor, 3B-apartment unit at LINTAS COURT. The seller is asking for RM228K, and is currently rented out at 1.0K per month. The weird thing is that the buyer also bought it for 228k in 2006 (2006 valuation at 190K). There doesn’t seems to be much capital appreciation going on, despite the busy surrounding. Why is that so? I would really appreciate your comment.
HI,
Valuation is very subjective. Most of the the valuation is mainly depend on latest transaction price and type of renovation in the particular unit. If the transacted price hit record high, then the valuer will value your property at higher price and if not then they will follow previous selling prices. For Lintas Court, most of the unit is bought for owner occupied, that why the value hardly when up as people buy to stay and not for sale. It should commanding good rental if the area is well maintain. Happy Investing.
You cannot Grow Land..CK Wong & My Dad
Hi!
Perhaps you can help me out..I am looking for a place to rent, preferably a terrace house in kolombong and the price is not more than 1,000. I saw winson’s email to you and wonder if you have his number or whether he has rented out his place at Taman Nelly? Tqvm. Shirley
hi Shirley,
referring your comments. Yes i am going to rent it out but not that soon as my loan have not been release yet. It should be around middle or end of April. I will rent it out with fully or partial furnish. Sorry to say that i could not able to rent out as low as 1000 ringgit. i am planning to rent out around 1200 ringgit.
If you still interested, you can email me at winsonwongsg@yahoo.com and i have the picture of the house external and internal.
cheers
Winson
Hi,
Out of curiosity, i saw someone selling an intermediate single storey house for 298k. Around 1980 sq ft. Looks like it is a good deal. Why i say that…. where can you let a house less than 300k in a prime area nowadays. It is difficult. And i am pity for those who earn less than 3k. Standard of living in KK is difference compare to last time. No way we can eat a plate of wan ton mee for 3 ringgit.
I was in KK for vacation and also viewing my new house that i just bought. I was impress the environment over there. The things that i like is the area is clean, quiet and have a nice cooling breeze all night and day long. It’s a place that i call a retirement area. I had been in overseas for 16 years now and always looking forward to have a nice quiet area to relax and live in compare to those where it is busy and noisy area.
Looks like i will not sell my new bought house in near future as it really a house for retirement. Thanks to my brother who introduce the owner to me so that i can buy from him.
Winson Wong
Hoping to invest on a property in Inanam
or Kolombong. Somewhere near to my work
place close to Cherry Lounge or the Government
Flat at Mile 5 1/2 Jalan Tuaran would be ideal.
What sort of pricing would that come for
say land area 8500 sq. ft with a 3 storey
building nowadays.
HI,
Depends..what types of property..zoning…usage..and etc..Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
What I should have added is that
the property is for residential use.
A 3-storey detached building or house
or flat type dwelling with parking
space for 4 to 5 cars would be ideal.
As far as I know residential
lot is very limited in this area.
What would be the likely price
involved?
Regards
HI,
If you are talking about 3 storey building with land area of 5000sf in Kolombong, my friend is selling for RM2M for newly constructed semilight industrial. But for 3 storey house like Kesington Height I heard they are selling around Rm480K-520K. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
hi, Ck
How big is the building floor area? eg.50ft x50ft?
10Q
Mr. Wong,
I am looking at Pearl Tower in Kolombong selling for ard rm200k, the owner claimed it to be freehold, is it true?
Comparing Indah Court for rm200k, Penampang Apartment for rm190k and the pearl tower for rm 200k, which one will be better? I am buying it for residential purpose but since I am not local and may get transferred to work in other states, I am looking at their marketability and future capital appreciation.
HI,
There is no freehold title in Sabah. The property is under 999yrs leasehold..still pending subdivision of title. Once its subdivided should be 99 years only. All are easy to market in the even you wanna sell in the near future as its affordable. Make your own decision. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
Hi CK,
Pearl Tower 1009sqft RM230K, for my own stay and plan to rent or sale it next 5 years. What is your opinion ?
HI,
Market Value is only about RM210K. Unless you going to pay more cash otherwise I dont think you can get the value of RM230K. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
Mr Wong,
Do you have any idea about Pearl Tower’s developer? Or do you have any information about the land title of Pearl Tower, whether it’s country lease and how long is the remaining lease? (when viewing, the owner told me it’s actually leasehold)
In Sabah, is it a pratice that the owner asked for 3% earnest money even before the title search?
Thank you in advance.
HI,
Its a normal process of getting 3% earnest money..some are asking for 5% even but with condition. If you doubt over the whole process..you can pledge the money with the lawyer. At least its more secure. Its a leasehold property..if I’m not wrong its under 999 yrs title. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
1′m 32nd in the coming year, is it too late to start any investment? my husband and i earn rm3700 only per month. and our target is nounton apartment, kelombong. thanks…
HI,
If you dont start you, do you think the property prices will stagnant and wait for you to purchase? If you cant buy today, next 5 years also you will not afford to buy. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
that’s meant with such a monthly income is impossible to buy any apartment?
Hi, CK,
Pearl Tower unfurnished unit 1350sq ft is selling for RM380k. What do you think? May I know what’s the market price?
Thanks!
Hi,
I don’t think you can get such value as Psf is less than RM230. Seller are asking current newly develop pricing. Anyway if you compare newly developed condo I believe it would be much more higher price. Happy investing.
Ckwong
Hi Mr CK, can you give your opinion on Taman Wijaya Park at Menggatal?Its a double storey 2 bedroom house, fully extended,freehold.Selling price less than RM220k. We are planning to buy for residential use. We are not local, so was wondering if this place has flood or any negative news that we are not aware of. Any infor from u is much appreciated. Thanks!
Hi,
30% from your purchase price mean you need to sell for RM 650K…I can’t see that far especially in this location. Happy Investing.
You cannot Grow Land..CK Wong & KH Wong
Hi.
Intermediate unit and the land area will be less than 2000sf. Happy Investing.
You cannot Grow Land..CK Wong & KH Wong
Dear CK
“Intermediate unit and the land area will be less than 2000sf” at reasonable location will hit rm 400,000.oo next year as quoted.
If that’s the case, we better buy now for capital appreciation gain next year. Any project favourable beside Kingfisher area to suggest for short term investment?
10Q
HI,
The holding cost is too high and rental yield is low(Double risk). Once the price reach this level (RM400K) it will stagnant for few years before grow further unless our economy really strong. To have high income economy is not easy. So better buy good rental yield property so that your investment can be cushion of by slow capital appreciation. Happy Investing.
You cannot Grow Land..CK Wong & KH Wong
Hi,
I think government will improve further the road connection in the near future once they completed the drainage system. But better dont hope so much. Try look for property which is having less jam problem.Kolombong is good if you can have warehouse or commercial there..you will command better rental yield over your residential property. I heard HSBC going to operate their office at new Kolombong commercial side (currently under construction). So Kolombong will definetly continue to shine..Happy Investing.
You cannot Grow Land..CK Wong & My Dad
Hi,
Thank you for making the picture clearer for me. I know the prices already exceeded RM400K 2 years ago. But whenver I told people they will not believe it. That why I mention here it will only exceeded next year. Anyway it will continue to rise but at slower pace from now on. The condominium market going to be main development next 2 years especially at Likas & Signal Hill. Happy Investing.
You cannot Grow Land..CK Wong & My Dad