The answer is YES. As I always say, for property investor who is keep waiting for the right price to enter, stop dreaming and start take action now acquiring it. Remember, in property investment we need to buy and wait. Not wait to buy. The longer you wait the higher the price is. Landowner will definitely not going to sell you cheaper price next year if you don’t buy it now.
One of the main reasons why I say property price in KK will continue to surge is due to high rental yield which supported by strong spending habits. On average ground floor shop lot in KK is commanding good rental of RM2800-RM7000 per month depending on location. The best ground floor rental yield situated at Damai area, Gaya Street, Segama Commercial Centre, Sinsuran, and new commercial area like Lintas Jaya and Putatan. The whole block of three storey shoplot in Lintas Jaya costing RM900K-RM1000K easily can collect RM6K per month @ rental yield of 7.2% – 8.0%. Per annum. But why businessman willing to rent even the costing is high? Remember, as long as people spend businessman will continue to open more and more branches to cater the demand. Take a simple example, Coffee Bean, Starbuck and San Francisco Coffee is having 13 branches in Kota Kinabalu!! This shows the revenue generated is fantastic; otherwise they won’t have so many branches. Latest figure I got from my friend from Kuching, they only have less than 5 branches and yet struggle for surviving!
As we know, Kota Kinabalu is known to the world for their beautiful and white sand beach, coral, mountains and other local cultural events. Foreigners love KK especially from Korea, China, Singapore, Europe, Australia and etc. Their present at KK eventually supporting the property price as to them it’s too cheap. Beside that, the living cost is low for them. We can see clearly when Korean started to setup their embassy office in KK last year. They don’t stop there; they even started to join in developing our land into world class living place. Few of their property developments are selling above local’s affordability but too cheap for their own people. To name a few:
- Saturn Group from Korea – Developing condominium and landed property at Bukit Padang area selling price starting from RM700K for a unit of condominiums.
- Kim Gaya Group – Developing housing project next to Pantai Dalit Rasa Ria
- Philip Group – Kudat Riviera selling only to the “Rich & Famous”, starting price is from USD1M – visit www.kudatriviera.com
- Nexus Resort – World class destination for beach with condominium selling for USD200K
- More to comes..
If foreigner started to become local developers, why we can’t see the opportunity? Furthermore by the end of 2009, our upgraded KK International Airport worth RM1.4 Billion is ready for operation. Imaging if every country in the world added one flight per month to KKIA, the potential for tourism is tremendous which will boost our property market as a whole.
Kota Kinabalu is the capital city of Sabah surrounded by Tawau, Sandakan, Lahad Datu, Keningau, Papar, Kota Belud, Tuaran, Ranau, Telupip, Kudat, Kota Marudu and Kuala Penyu. To support my view on property price please answer my below 2 questions:
1. How many percent of people from outsider going to buy property in KK? I would say 70% or more of the people will come to capital city to invest in property.
2. How many percent of KK’s people going to invest outside of capital city? I would say 30% or less will go outside KK to invest.
Simple, if you are from KK, are you going to invest in Tawau property especially for residential and commercial? But that is not the end of the world, as there is other thing that you can invest outside KK that is vacant land. I love accumulating vacant land outside KK as the cost is cheaper. We will talk more in details about vacant land outside KK next session.
Population of Sabah reaches 3 millions people last year, but of course this including foreign works who works here. Do you know that foreigner who works here actually support our economy a lot especially property market? First they need a home to stay (rented our residential) and second they will spend half of their money for living expenses here (good for commercial property). So sometime I don’t understand why locals always complaint about them. Like I always say traffic jam is good as its mean the particular location is hot and highly in demand. That’s provided you own some unit there, but what happen if not? So make sure everything happen around is related to you. If not you can only complaint while people like me is harvesting the fruits!!
I will continue to update you all on the property mart in KK. So remember to take action before price when up further!!
Related posts:
{ 29 comments… read them below or add one }
Wow, CKWong, I had been waiting for a website like this, something solid about property investment in KK. Thanks to CKLau who introduced your blog, I had quickly bookmarked your page. This is one page I will not want to miss, will be sure to visit daily.
My other property website that I visit daily is the mudah.com. It has great updates on the property scene in KK.
You are sure right about escalating prices in KK but I do sometime wonder if some of these properties are over the top eg damai condo, radiant, jesselton. I wonder how many locals can really afford sure high end. I myself go for the middle class as I find rental income rather good in this class. I am currently looking at Cyber city apartments phase 1. Any comments?
Yong,
Thank you for your compliment. Anyway Mudah.com is free website and user friendly. I also put up my property inside. Property price from KK will continue to rise. So once you find a good deal better buy. As I mention, don’t wait for buy property. You must create a habit “buy and wait”. Area like damai, Radiant, Jesselton condo will continue to do well simply because the unit is limited. Do you know how many unit Jesselton condo is?Its only 133 units. Imaging if 60% of the purchaser buy for owner occupied.Only left 50 Units for sub sales. That why you can see the price appreciate so fast (at least 40% or RM200K per unit).
About Cyber City, I saw the area and its nice and good location. But the unit is tremendous (if I’m not wrong about 3000units). The project will take longer time to really matured and appreciate in terms of their value. Do you know Beverly Hills area? The area only appreciate lately after the highway complete. If you want to accumulate property for rental collection, you might want to consider this area but you must buy below market value. Say 3 rooms apartment for about RM125K-RM140K depending on which phase,floor, and condition. Frankly, I don’t really appreciated new project completed by WONG’s. Happy Investing.
Ck Wong
Wong,
Thanks for your sharing and the hardship set up this website. Thanks to CKLau for directing such a GREAT blog to us.
Credits shall go to you both CKx2.
I wonder if you have a Millionaires’ Club in KK?
Jon
Jon,
How I wish we have it in KK. At least I’m not so bored. Anyway, hope you can join the club soon and share with us how you make it. Happy Investing.
Ck Wong
Hi CK,
First of all I guess now you must be pretty busy answering all of the qurestions, views and comments posted on this blog evry night. But make sure you still have time for yourself ,,you know !??
I really admire you name, CK ! You know why ? It either meant Cash King or Cepat kaya ! You should thank whoever that give you this name ! Bravo !!
OK…. lets get abit serious. Talk about will kk property price continue to increase ! The answer to that is<<<< why not ?
KK being :
- the businest and most international airport in Malaysia, second only to KLIA. These attracted many foreigners to invest here
- the capital for Sabah with the last 15 years of oilpalm boom especially in the east coast . These has poured so much cash into the system and end up in the property market because there's not much land left to be purchase for new planting. Thus help push up the property price and will continue to do so with the steady OP price.
- Many of us was hoping the property price to drop in kk during this recession. But It didn't . Not only that . Most of the good area has gone up in price.
In view of these i believe it will continue in the up trend , more so in the coming recovery of our economy .
Cheers
Ah Fook
Ah Fook,
Dear all readers, Ah Fook is one of my best friend. His hobby is nothing more than buying property. I fully agree with all the additional point that he mention above. I believe rising pProperty price in KK’s is just a beginning. So why wait, listen to the successful people like Ah Fook. Happy Investing.
Ck Wong
Hi CK,
I noted on your comments on Wong Kwok’s project. At Sulaman, the University Apartments, those are selling very well. Can you share your views on the propeties that are located at this area.
Appreciate your feedback. TQ
flora
Hi there,
Selling well is very very good for developer. But if you notice that the shoplot is fully occupied but the apartment is hardly occupied. I just manage to convince one doctor to rent from me at likas area as the rental offer to her is the same as what University Apartment expect. For me, the apartment unit is too many..and it might took abit of time (maybe 5 yrs) to really see the maturity of the property. Mean time you need to bear with low rental and high competition for renting and selling. If you notice auction list lately, University apartment started to come out already.
Think twice before you invest…as pull few cow is much much easier than pull few thousand of cow. Right? Happy Investing.
Ck Wong
Talking about the over supply of small apartments in KK, (country hts, beverly, lok kawi, melinsung, etc,etc) I did voice my concern to the sales agent in cybercity apt. His reason was location, location, location. Thus I believed him and booked myself a 3 bedroom unit in CCA1 at the 1st flr, corner unit at RM200,888. Its only 750 sft, so small I can hardly imagine. But we had to find a place of our own rather than staying with my in-laws everytime we visit KK.
The point is, its RM267 psft!! Just rm60 psft difference from subsale grace garden condo>
Tell me I did a big mistake, I don’t mind. But the unit is near my in-laws family home-,its ok. It made my wife happy!
P.s. cybercity has 1600 units, Beverly has 5000 units!
Yong,
If by purchasing the property can bring more happiness for your lovely wife, RM1000 per square feet also you need to buy. Right? That why
I always say if personal reason been use as one of the consideration to purchase property, you tend make out of ordinary decision. Like you say Grace
Garden is only RM60 extra per sf, do you think CCA1 going to command high appreciate and rental yield compare to Grace Garden which total unit is less than 500?
Yong, don’t forget CCA1 & CCA2 is consist of more than 3000 unit right? Since you buy for owner occupied, this issued is not your concern but for those who buy for
investment hoping to get capital appreciation and high rental yield will be affect. Happy Investing.
Ck Wong
There are a lot empty units at 2nd and 3rd floor but 1st flr is apparently full house. With the facilities and its proximity to KKIA and Open university, we expect a healthy demand, esp for the 1st floor units. If it goes up 20% I may even sell it off!
The unit was launched at Rm188,888, appreciate about 8% per annum. Hope it continues to appreciate when completed.
As investors, I think we should buy with our calculators and not our hearts. But it is sometimes difficult to do that.
Yong,
Anyway Happy Investing.
I’m not 100% correct all the time. But the fact is this group of developer will flooded the market with apartment and I know they have few more mega project in their pipeline. And if you notice buletin news under Sabah Housing Association 60% or more residential property in KK is developed by them and the best part is that the auction list also the same
Ck Wong
You are right. I heard they gathered the kampung folks with IC , to sign up and S&P done. Simple as that….
Shall I back out from the deal. We don’t mind losing the booking fee 1k if this project is perceived a dead fish as the rest. Need your opinion as i am not from KK, neither am I staying in KK. We just visit 3x a year during the school hols.
Yong,
Which project you refering to?You buy for investment or owner occupied? Seem like you coming back from overseas? Where are you now?Working as what? Happy Investing.
Ck Wong
We are based in KL/Miri. As for CCA1, i think we must visit the site and see the apt first. Will decide later. Thanks.
Wong, what do you think of Putatan/ Lok kawi/ Kinarut areas? Will these areas see growth in the next 5 years?
Yong,
Yes. Putatan is consider a district now. So the development will be huge there but the target market is definitely not chinese..majority is still monopolise by bumiputra market. So if you want to buy for rental collection..think twice. Happy Investing.
You cannot Grow Land.. CK Wong & KH Wong
1sulaman is so tempting. Just pay 3k and the rest of the 10% is waived, so is the legal and stamp duty. For 1100sft, 3 bedroom, it sells at 263k ( about 239 psft). Thus our investment is only 3k, the rest is leverage fr banks.
The only problem is potential rental appears rather low. What do you think?
Joe,
The entry cost is cheap. I fully agree but please look at surrounding.. the development is huge..1Borneo Tower A & B comprising 800 unit, University Apartment – 1500units, University Condo Phase1 & 2 – Around 3000 units. To see the maturity of the price and rental market for this area might took another 5 years. So think carefully. Its not easy to let go property if the environment is too competitive. Look at Rower A & Tower B.. even though completed 6 month ago the occupancy still low..and look at University apartment auction list is increasing..Happy Investing.
You cannot Grow Land.. CK Wong & KH Wong
Hi, I have been reading your blog since beginning. would like to know your opinion on ceriamas 118 ph 3 in putatan. do you think this property will appreciate in time to come? it’s 3 storey semi-D selling for RM700k. i see potential in it because of the new township concept here. just want to know how you see it?
thanks
HI,
Appreciation will definetly there, but how much?Are you cash rich base? If you are not better dont touch such high price property. Its “HURT” if the property return go against you especially when interest rate pressure come in. Happy Investing.
You cannot Grow Land.. CK Wong & KH Wong
Hi everyone, i just come back from oversea and would like to start investing in KK properties. Please could anybody give me any guidance where about shall i start or keep an eye on? Thanks!
Hi,
Please contine reading. I will continureshare with you about property investment at KK, Sabah. Happy Investng.
You cannot Grow Land.. CK Wong& KH Wong
Hi ck, what do u think of commercial property at Hap Sings kingfisher Plaza?new commercial developments sold block by block..costing more than a million!In your opinion is it good to invest ina commercial property or residential and where in KK.Thanks ck.
HI,
KK is booming with strong purchasing power. Kingfisher side is growth area now with strong back up from KK industrial Park and Sabah Port. But its take time. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
Kind Regards,
I’m looking for a single or double-storey terrace house.
I’m interested to buy, preferably KK area…. My budget is from RM300,000.00 to RM350,000.00
Regards,
Christine
I think u shd look elsewhere because this isn’t really a house searching website. U can start by reading local newspaper, Borneo Post thursday edition has lots of listings by KK based agencies. Over the internet, u can try :
http://www.mudah.my/
http://sabah.metrohomes.com/
Or google until u find the best websites where u can do instant search.
I m thinking of buying a unit of double terrace house at Taman Cerah located at Tuaran By-pass near to New Tshung Tshin campus and UA. The house size is 22 x 36.9 and the land area is 22 x 80 at the price of RM398,800 for intermediate lot. What do you think?
Hi,
Might as well you consider Kingfisher area, BDC, & Iramanis which is also selling at the same price or even lower..The land size is bigger and some are 999 titles. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD