Will property price in KK continue to surge? (Part 1)

by CKWong

IMG 0901 300x225 Will property price in KK continue to surge? (Part 1)

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:

  1. Saturn Group from Korea – Developing condominium and landed property at Bukit Padang area selling price starting from RM700K for a unit of condominiums.
  2. Kim Gaya Group – Developing housing project next to Pantai Dalit Rasa Ria
  3. Philip Group – Kudat Riviera selling only to the “Rich & Famous”, starting price is from USD1M – visit www.kudatriviera.com
  4. Nexus Resort – World class destination for beach with condominium selling for USD200K
  5. 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!!

button Will property price in KK continue to surge? (Part 1)

Related posts:

  1. Continue rising of property price in K.K (Part 2)
  2. Likas Continue To Shine
  3. Kolombong will continue to shine

{ 117 comments… read them below or add one }

Sherry October 22, 2011 at 6:43 am

Hi CK,

Ive just been transferred to KK and am working at KWSP building. Am renting a house at Grace ville for RM1500.00. Am thinking of getting a house/condo of my own:- can you recommend a few places that offer reasonable prices ( 300k-450k). Thanks

Reply

Vincent March 23, 2012 at 9:03 am

Sorry,
I accidentally bumped into dis website, Btw, which particular areas r u Looking for?

Vincent

Reply

wong February 18, 2012 at 12:05 pm

Hi, ck wong.

Good evening. Mind to ask do u have others website recommended like mudah.com. I’m agreed with mudah is user friendly. But I’m still looking for others website. Hope you are able assist me. Thank you.

Wong

Reply

terry April 12, 2012 at 3:19 pm

HI guys.

Any advise on investing in kinarut condo?Can it be consider to invest? Any future prospect?

Reply

CKWong April 12, 2012 at 11:58 pm

HI,
its tough to say. The main thing that push up our overall property prices is the “cost”. So whether you like it or not..new development going to be more expensive from current. But in terms of potential, I still prefer KK area. Happy Investing.

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

Reply

Ling April 13, 2012 at 1:38 am

Hi CKWong,

What do you think of Suria Shop Apartment for investment?

Thank You.

Reply

CKWong April 15, 2012 at 11:24 pm

Hi,
Shop apartment would not really enjoy appreciation and rental yield over the long term. Its cheap entry cost but bear in mind…better than nothing. Happy Investing.

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

Reply

EY April 15, 2012 at 11:57 pm

hi CK, how do you think of Eden Height? I’m thinking of buying 1 unit there for long term investment. I think the condo is undervalued considering its prime location however the main concern is its poor management.

Reply

JW June 14, 2012 at 2:54 pm

Hi CK,

Are you able to advice the average year over year % increase in KK housing property?
2010 vs 2011 vs 2012

Reply

CKWong June 14, 2012 at 9:02 pm

Hi,
I think The best we follow inflation rate which is around 4-5% per annum. Of course if you look at the real market, the price increase more than that..easily 10-15% per year. Happy investing.

CKWong

Reply

Jessica June 20, 2012 at 3:10 pm

Dear Everyone;

This blog is no longer active.

Why????

Reply

CKWong June 21, 2012 at 12:41 pm

Hi
Owner getting busy and abit lazy to update:) Happy investing

Ckwong

Reply

vincent November 14, 2012 at 8:47 am

Dear CK,

I would like to ask your opinion about UUC phase 2 in Sepanggar. Can it be invest? the price is RM 207k (fully furnished)for 2 rooms 527 SQ?

Reply

CKWong November 16, 2012 at 10:46 pm

Hi Vincent,
Pls tell me your own view first. Happy Investing.

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

Reply

Vin November 17, 2012 at 3:11 am

ya good. so we all can hear different kind of opinions and views

Reply

jenn November 22, 2012 at 2:31 pm

Dear ck wong

What do u thing of investing in retail lot at pacificity next to likas square? selling price at rm2800-3000 per sft. Is it a good investment?

Reply

CKWong November 22, 2012 at 7:35 pm

Hi,
I did bought Pacific City but my entry cost is around RM1000 psf only..but for you to enter at RM2800psf I think a bit tough..happy investing

Ckwong

Reply

Kelly M Fernandez November 24, 2012 at 1:17 am

I JUST CAME ACROSS YOUR WEBSITE.
IT IS INFORMATIVE AND MAKES ME THINK SERIOUSLY ABOUT PROPERTY IN KK.

WHAT IS THE PROPERTY CLIMATE IN MENGGATAL IN YOUR OPINION?

Reply

Mark January 10, 2013 at 3:52 pm

Dear CK Wong,

I’d like to ask your advice about some property I own. I have a corner shoplot at 1Borneo (1st Floor, 900 sqft). Do you think the demand for our property will rise in the future? I’ve been trying to sell the property but have not had any luck, and I’ve offered a very good price. If possible, can you email me. I’d like to get your opinion on some things if you don’t mind. Thanks in advance.

Mark

Reply

bear April 8, 2013 at 12:59 pm

hi can i seek the advice from all of u..
indah court likas apartment, 4floor corner, no renovate..
selling price RM320,000. is it worth to buy?
thank you ;)

Reply

huey August 27, 2013 at 2:25 am

Dear CK,

There is a property in Sri Kepayan Apartment, corner, about 900sq ft, partially furnish with 1 car park that the owner is selling for the price of RM340K. The location of the apartment is facing south on its balcony. Is the property worth buying? Thanks in advance

Reply

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