This article first appeared in City & Country, The Edge Malaysia Weekly on July 15, 2024 - July 21, 2024

While the Sabah residential property market continued its upward trend in the first quarter of 2024, a cautious outlook is still needed, says Rahim & Co regional manager (Sabah) Max Sylver Sintia in presenting The Edge Malaysia | Rahim & Co Kota Kinabalu Housing Property Monitor 1Q2024.

“The outlook of the labour force in the construction industry as well as the increase in prices of building construction materials will not only affect the property supply but also developers’ pricing strategy.

“Homebuyers’ affordability as well as disposable income levels of consumers notwithstanding, the momentum of the Sabah property market is anticipated to remain cautiously optimistic for the rest of the year, with relatively steady performance year on year,” says Max.

Meanwhile, he says the performance of the state’s residential property market for the quarter under review showed positive growth.

“The Sabah residential property market improved in 1Q2024, indicated by higher volume and value of transactions compared to 1Q2023. The state registered 1,436 residential transactions worth RM589.921 million in 1Q2024, with a y-o-y growth of 17.03% in volume and 22.24% in value,” says Max.

He says properties below RM300,000 were the best sellers, with 677 transactions worth RM129.116 million, followed by properties in the range of RM300,001 to RM500,000 (452 transactions, RM180.183 million); RM500,001 to RM1 million (232 transactions, RM160.36 million); and above RM1 million (75 transactions, RM120.263 million).

The most transacted property types were 1-, 2- and 3-storey terraced houses in Sabah, with 536 transactions worth RM211.658 million. This was followed by condominiums and apartments with 370 transactions worth RM122.746 million; and 1-, 2- and 3-storey semi-detached houses with 185 transactions worth RM107.451 million. The number of detached residential properties transacted in 1Q2024 was 97, valued at RM80.664 million.

“The combined adjacent districts of Kota Kinabalu, Penampang and Putatan made up the bulk of the volume of residential property transactions in Sabah in 1Q2024, with 753 transactions worth RM378.85 million. Compared to 1Q2023, the number and value of residential property transactions in Kota Kinabalu, Penampang and Putatan rose 21.45% and 30.32% respectively,” says Max.

The most transacted property types in this conurbation were condominiums and apartments, with 277 transactions valued at RM103.352 million, followed by 1-, 2- and 3-storey terraced houses (221 transactions, RM108.798 million), 1-, 2- and 3-storey semi-detached houses (95 transactions, RM66.238 million), and detached houses (56 transactions, RM61.27 million).

Other districts have been performing well, too. Max highlights the combined adjacent districts of Sandakan, Labuk-Sugut, Tongod and Kinabatangan, with 232 residential property transactions worth RM66.06 million. This was followed by the Tawau district with 178 residential property transactions worth RM64.56 million.

In addition to sale activities, there were notable property transactions in the first quarter of the year.

“They include the purchase of a parcel of oil palm land measuring about 400.3 acres in Jalan Ulu Sahabat, Lahad Datu, by TSC Plantations Sdn Bhd for RM14 million,” says Max.

“Syarikat Keratong Sdn Bhd purchased seven parcels of oil palm land measuring 588 acres in Ulu Segama on Jalan Lahad Datu-Sandakan, for RM18.8 million.

“In the prime and exclusive residential area of The Residency @ Sutera in Kota Kinabalu, a parcel of residential land measuring 16,643 sq ft was transacted for RM5.68 million, or RM341 psf.”

There was also a project launch by BEDI Development Sdn Bhd, a subsidiary of EXSIM Group. Residensi Bayu Damai is a high-rise residential development occupying 10.2 acres. It is located on Jalan Fung Yih Ting in Damai, Kota Kinabalu, and comprises two towers — the 34-storey, 373-unit Tower A; and the 30-storey, 389-unit Tower B.

The development comes with six different layouts and sizes. The 190-unit Type A has a built-up area of 697 sq ft, a 2-bedroom, 2-bathroom layout, and a parking bay; the 158-unit Type B has a built-up area of 834 sq ft, a 3-bedroom, 2-bathroom layout, and a parking bay; the 128-unit Type B1 has a built-up area of 898 sq ft, a 3+1-bedroom, 2-bathroom layout, and two parking bays; the 158-unit Type C has a built-up area of 963 sq ft, a 3+1-bedroom, 2-bathroom layout, and two parking bays; the 64-unit Type D has a built-up area of 1,131 sq ft, a 4-bedroom, 3-bathroom layout, and two parking bays; and the 64-unit Type D1 has a built-up area of 1,132 sq ft, a 4-bedroom, 3-bathroom layout, and two parking bays.

Max says: “The selling price ranges from RM474,810 to RM961,800. Facilities include a pool, Jacuzzi, gym, multipurpose hall, children’s play room, children’s pool, barbecue pavilion, games room and basketball court.”

The 2-storey terraced houses in the monitor recorded an average price growth of 2.69% y-o-y in 1Q2024, an increase of 0.31 percentage points, Max says.

The highest y-o-y price growth was recorded in Taman Indah Permai, up 3.19% to RM485,000. This was followed by Ujana Kingfisher (up 3.15% to RM655,000), Millenium Height (up 3.13% to RM660,000), Taman Sri Borneo (up 2.88% to RM715,000), Taman Jindo (up 2.86% to RM720,000), Luyang Perdana (up 1.91% to RM800,000) and Golden Hill Garden (up 1.69% to RM900,000).

Prices in Taman Indah Permai rose 1.04% quarter on quarter, followed by Ujana Kingfisher (0.77%), Millenium Height (0.76%), Taman Sri Borneo (0.7%), Taman Jindo (0.7%), Luyang Perdana (0.63%) and Golden Hill Garden (0.56%).

Rents also showed improvement. According to Max, the average y-o-y rental growth for the 2-storey terraced house samples was 1.99%.

Rents in Ujana Kingfisher improved by 2.63% y-o-y to RM1,950 per month. This was followed by Taman Sri Borneo, with rental growth of 2.5% y-o-y to RM2,050 per month, Millenium Height (up 2.44% to RM2,100 per month), Taman Jindo (up 2.33% to RM2,200 per month), Luyang Perdana (up 2.13% to RM2,400 per month) and Golden Hill Garden (up 1.89% to RM2,700 per month). No y-o-y rental growth was recorded in Taman Indah Permai.

Meanwhile, the average gross yield for 2-storey terraced houses was 3.65%. “Comparing the gross yield in 1Q2024 with 1Q2023, there was a slight decrease of 0.03 percentage points,” says Max.

The highest gross yield was registered at Taman Indah Permai (3.84%), followed by Millenium Height (3.82%), Taman Jindo (3.67%), Luyang Perdana (3.6%), Golden Hill Garden (3.6%), Ujana Kingfisher (3.57%) and Taman Sri Borneo (3.44%).

“For 1-storey terraced houses, the y-o-y price growth for the quarter in review was 3.87%, down from the 4.03% recorded in 1Q2023, a decrease of 0.16 percentage points,” says Max.

The highest y-o-y price growth was recorded in Taman Tuan Huat, with an increase of 4.04% to RM515,000, followed by Taman Sri Kepayan (up 3.81% to RM545,000) and Taman Nelly Ph 9 (up 3.77% to RM550,000).

Quarterly results show Taman Tuan Huat registering 0.98% growth, Taman Sri Kepayan, 0.93%, and Taman Nelly Ph 9, 0.92%.

Rents in Taman Tuan Huat improved by 3.13% y-o-y to RM1,650 per month. In Taman Nelly Ph 9, rents rose 3.03% y-o-y to RM1,700 per month; and Taman Sri Kepayan recorded an increase of 2.86% y-o-y to RM1,800 per month. The average rental growth y-o-y for the samples was 3%.

Only Taman Tuan Huat registered a q-o-q increase in rent, by 3.13%; other areas remained unchanged.

As for the average gross yield, 1-storey terraced houses achieved 3.84%, down 0.03 percentage points from 1Q2023. The highest yield was registered at Taman Sri Kepayan, with 3.96%, followed by Taman Tuan Huat (3.84%) and Taman Nelly Ph 9 (3.71%).

Max says condominiums in the monitor recorded an average price growth of 1.62% y-o-y in 1Q2024, up 0.11 percentage points.

“Bayshore Condominium registered the highest price growth y-o-y (up 3.6% to RM570 psf), followed by 1 Borneo Condominium (up 2.6% to RM395 psf), Likas Square (up 2.4% to RM420 psf), Radiant Tower (up 1% to RM500 psf), Jesselton Condo (up 0.8% to RM605 psf), Marina Court (up 0.8% to RM605 psf), Alam Damai (up 0.8% to RM605 psf) and The Peak Condominium (up 0.8% to RM665 psf). Overall, prices of our condominium samples averaged at RM546 psf in 1Q2024.”

Meanwhile, Bayshore Condominium registered a q-o-q price growth of 0.9%; the others remained unchanged.

Rents in Bayshore Condominium rose 3.45% y-o-y to RM1.67 psf per month, followed by 1 Borneo Condominium (up 3.13% to RM1.67 psf per month), Likas Square (up 2.5% to RM1.52 psf per month), Alam Damai (up 2.44% to RM1.91 psf per month), Radiant Tower (up 2.17% to RM1.81 psf per month), Marina Court (up 1.92% to RM2.04 psf per month) and Jesselton Condo (up 1.67% to RM2.03 psf per month). No y-o-y rental improvement was recorded at The Peak Condominium.

Radiant Tower registered an improvement in rents of 2.17% q-o-q, followed by Jesselton Condo, with a 1.67% increase. The others remained unchanged.

Condominiums in the monitor registered an average gross yield of 4.09% — a slight increase of 0.02 percentage points from 1Q2023.

The highest gross yield was recorded at 1 Borneo Condominium with 5.06%. This was followed by Likas Square (4.34%), Radiant Tower (4.34%), Marina Court (4.04%), Jesselton Condo (4.03%), Alam Damai (3.79%), The Peak Condominium (3.61%) and Bayshore Condominium (3.51%).

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