Sabah’s residential property market saw improvement in 2Q2024, thanks to the higher volume and value of transactions compared with 12 months earlier.

“The state registered 1,297 residential transactions worth RM556.61 million in 2Q2024, with a year-on-year (y-o-y) growth of 8.26% [in volume] and 15.97% [in value] respectively,” says Rahim & Co regional manager (Sabah) Max Sylver Sintia in presenting The Edge Malaysia/Rahim & Co Kota Kinabalu Housing Property Monitor 2Q2024. 

However, the quarter-on-quarter (q-o-q) results saw a decline.

“Compared with 1Q2024, the volume and value of residential transactions in Sabah for 2Q2024 declined by 9.68% and 5.65% respectively. This shows that despite positive results in terms of volume and value of transaction y-o-y, the market momentum in 2Q2024 was not as high as in 1Q2024,” explains Max.

Properties priced below RM300,000 were the best performing with 614 transactions worth RM118.97 million (47.34% of total volume; 21.37% of total value). This is followed by properties priced between RM300,001 and RM500,000 (with 384 transactions worth RM152.74 million); RM500,001 and RM1 million (with 232 transactions worth RM160.62 million); and above RM1 million (with 67 transactions worth RM124.28 million).

The 1-, 2- and 3-storey terraced houses were the most transacted property type in Sabah with 488 transactions worth RM188 million (37.63% of total volume; 33.78% of total value). This is followed by condominiums and apartments (355 transactions worth RM124.9 million); 1-, 2- and 3-storey semi-detached houses (174 transactions worth RM107.78 million); and detached residential properties (77 transactions worth RM73.4 million)

As for the district or districts that performed the best were the conurbation of Kota Kinabalu, Penampang and Putatan.

“The combined adjacent districts of Kota Kinabalu, Penampang and Putatan made up the bulk of the volume of residential property transactions in Sabah in 2Q2024 with 682 transactions, accounting for 52.58% of the total volume of residential property transactions in Sabah, worth RM374.35 million, 67.26% of the total value of residential property transactions in Sabah. Compared with 2Q2023, the number and value of residential property transactions in Kota Kinabalu, Penampang and Putatan increased by 12.17% and 22.90%, respectively,” says Max.

The property type most transacted in Kota Kinabalu, Penampang and Putatan was condominiums and apartments with 270 transactions worth RM107.8 million. This is followed by 1-, 2- and 3-storey terraced houses (207 transactions worth RM102 million); 1-, 2- and 3-storey semi-detached houses (89 transactions worth RM72.08 million); and detached residential properties (37 transactions worth RM53.01 million).

Sandakan and Tawau rank second and third on the list of district performance.

“The next districts with highest volume of residential properties transactions during the quarter under review is Sandakan with 209 residential property transactions, which is 16.11% of the total volume of Sabah residential property transactions, worth RM57.19 million, 10.27% of the total value of Sabah residential property transactions,” says Max.

“Next is Tawau district with 175 residential property transactions, 13.49% of the total volume of Sabah residential property transactions in 2Q2024 worth RM57.35 million, 10.3% of the total value of Sabah residential property transactions in 2Q2024.”

There was one notable transaction in 2Q2024, Max reveals, which was the purchase of two parcels of vacant industrial land totalling 1.87 acres in Jalan Tuaran for RM15.5 million or about RM190 psf by Angkatan Hebat Sdn Bhd.

There was one property launched in the quarter under review.

“In April, KTI Development Sdn Bhd, a subsidiary of KTI Landmark Bhd (KL:KTI) launched Kayana Heights Apartment — a 39-storey apartment located in Alamesra, Kota Kinabalu. The development is part of Ayuria Place — a mixed-use development scheme that comprises the 39-storey twin tower Kaya Heights Apartment, 36-unit double storey superlink houses known as Araya Garden, and 12-unit shoplots,” says Max.

“Kaya Heights Apartment has a total of 433 units and it comes with two different layouts and sizes starting with Type B which is a corner unit with144 units having a built-up area of 900 sq ft each with three bedrooms and two bathrooms; and Type C, which is an intermediate unit of 289 units with a built-up area of 650 sq ft each with two bedrooms and two bathrooms. Type B units are sold from RM368,000 to RM493,000, while Type C units start from RM314,000 to RM399,000.”

Looking ahead, Max believes the upward growth will continue, however, with a caveat. “The Sabah residential market is expected to continue its positive momentum in 2H2024. Buyers are gradually gaining confidence in their property purchases but are remaining cautious.”

The 2-storey terraced houses in the monitor recorded an average y-o-y price growth of 2.74%, an increase of 0.26 percentage points (ppt).

According to Max, the highest y-o-y price growth was recorded in Taman Indah Permai with an increase of 4.26% to RM490,000. This is followed by Ujana Kingfisher (3.13% to RM660,000), Millenium Height (3.1% to RM665,000), Taman Sri Borneo (2.86% to RM720,000), Taman Jindo (2.84% to RM725,000), Luyang Perdana (1.9% to RM805,000) and Golden Hill Garden (1.12% to RM900,000).

As for q-o-q, Taman Indah Permai increased by 1.03%, followed by Ujana Kingfisher (0.76%), Millenium Height (0.76%), Taman Sri Borneo (0.7%), Taman Jindo (0.69%) and Luyang Perdana (0.63%). Golden Hill Garden remained unchanged.

As for y-o-y rental performance, Taman Sri Borneo improved by 5% to RM2,100 per month. This was followed by Millenium Height (4.88% to RM2,150 per month), Taman Jindo (4.65% to RM2,250 per month), Luyang Perdana (4.26% to RM2,450 per month), Golden Hill Garden (3.77% to RM 2,750 per month), Taman Indah Permai (3.23% to RM1,600 per month) and Ujana Kingfisher (2.63% to RM1,950 per month).

“The average y-o-y rental growth for the 2-storey terraced house samples is 4.06%,” says Max.

Compared with 1Q2024, rental in Taman Indah Permai improved by 3.23%, followed by Taman Sri Borneo (2.44%), Millenium Height (2.38), Taman Jindo (2.27%), Luyang Perdana (2.08%) and Golden Hill Garden (1.85%). Ujana Kingfisher’s rental rate remained unchanged.

Yield-wise, the average gross yield was 3.7% with a slight increase of 0.05 ppt, compared with a year ago, Max highlights.

The highest gross yield was registered at Taman Indah Permai (3.92%). This is followed by Millenium Height (3.88%), Taman Jindo (3.72%), Golden Hill Garden (3.67%), Luyang Perdana (3.65%), Ujana Kingfisher (3.55%) and Taman Sri Borneo (3.5%).

The y-o-y price growth for 1-storey terraced houses was 3.84%, down by 0.04 ppt from 3.99% recorded in 2Q2023.

The highest y-o-y price growth was recorded in Taman Tuan Huat, with an increase of 4% to RM520,000, followed by Taman Sri Kepayan (3.77% to RM550,000) and Taman Nelly Ph 9 (3.74% to RM555,000).

Compared with the previous quarter, Taman Tuan Huat registered 0.97% growth q-o-q, followed by Taman Sri Kepayan (0.92%) and Taman Nelly Ph 9 (0.91%).

According to Max, the rental rate in Taman Tuan Huat improved by 3.13% y-o-y to RM1,650 per month. Taman Sri Kepayan recorded an increase of 2.86% y-o-y to RM1,800 per month, while there was no rental growth recorded in Taman Nelly Ph 9.

“The average rental growth y-o-y for the 1-storey terraced house samples is 1.99%,” he says, adding that there was no q-o-q rental growth for this house type.

The average gross yield achieved for 1-storey terraced houses was 3.8%, down by 0.07 ppt compared with 2Q2023. The highest yield was registered at Taman Sri Kepayan with 3.93%, followed by Taman Tuan Huat (3.81%) and Taman Nelly Ph 9 (3.68%).

“The residential high-rises in the monitor recorded an average of 1.6% price growth y-o-y in 2Q2024, which translates into a slight decrease in percentage points by 0.07 compared with the average y-o-y growth registered in 2Q2023,” says Max.

Likas Square registered the highest y-o-y price growth, up 3.7% to RM425 psf, followed by Bayshore Condominium (3.6% to RM575 psf), 1 Borneo Condominium (1.3% to RM395 psf), Radiant Tower (1% to RM500 psf), Jesselton Condo (0.8% to RM605 psf), Marina Court (0.8% to RM605 psf), Alam Damai (0.8% to RM610 psf) and The Peak Condominium (0.8% to RM665 psf).

“Overall, the price for our residential high-rise samples averaged at RM548 psf in 2Q2024,” says Max.

Meanwhile, Likas Square registered a price growth of 1.2%, followed by Bayshore Condominium (0.9%) and Alam Damai (0.8%) q-o-q. The others remained unchanged.

Residential high-rise yields, on the other hand, registered an average gross yield of 4.08%, which was the same as recorded in 2Q2023.

“The highest gross yield for our condominium samples was recorded at 1 Borneo Condominium with 5.06%. This is followed by Radiant Tower (4.34%), Likas Square (4.29%), Marina Court (4.04%), Jesselton Condo (4.03%), Alam Damai (3.76%), The Peak Condominium (3.61%) and Bayshore Condominium (3.48%),” says Max.