This article first appeared in City & Country, The Edge Malaysia Weekly on May 5, 2025 - May 11, 2025

Sabah’s residential property market ended last year in a strong position and this steady growth is expected to continue.

“The Sabah residential property market ended 2024 with a strong performance driven by an exceptional fourth quarter performance,” says Rahim & Co regional manager (Sabah) Max Sylver Sintia in presenting The Edge Malaysia | Rahim & Co Kota Kinabalu Housing Property Monitor 4Q2024.

“Although the market pace fluctuated throughout the year, by the fourth quarter, growth in both the volume and value of transactions still outpaced the first three quarters of the year.”

Despite this, Max explains that market sentiment among buyers is mixed and varies by location, asset class and price bracket. Moreover, living costs, purchasing power and global economic uncertainty have an impact on sentiment. Nevertheless, he does not see this hampering the market’s performance.

“Sabah’s real estate sector has shown resilience, adapting to new demands while navigating the complexities of a recovering market. The growth within Sabah’s residential property market highlights the industry’s ongoing vibrancy,” says Max.

The market, he adds, is shifting towards more sustainable and tech-driven property solutions that have reshaped how developers and buyers view real estate.

“Looking ahead, Sabah’s property market will be driven by the convergence of digitalisation, sustainability, ESG awareness and a growing demand for integrated urban living. With continued support, such as through incentives for affordable housing, investor-friendly policies and tech-driven initiatives, the property market is expected to continue [growing] steadily. While market challenges remain, the outlook is positive for those who can adapt to the market’s evolving needs, especially with the promising indicators of late,” he says.

For the quarter under review, Sabah’s residential market achieved a total of 1,583 transactions valued at RM672.77 million. This is an increase of 2.73% and 5.76% respectively compared with 4Q2023. Compared with the previous quarter (3Q2024), the volume and value of transactions saw an increase of 40.1% and 47.21%.

Properties priced below RM300,000 per unit dominated the residential market segment in the quarter under review, with 717 transactions valued at RM138.6 million. This was followed by those in the RM300,001 to RM500,000 bracket (486 transactions, RM194.1 million), RM500,001 to RM1 million (304 transactions, RM210.77 million) and above RM1 million (76 transactions, RM129.26 million).

Going by type, 1-, 2- and 3-storey terraced houses were the most transacted properties in Sabah, with 600 transactions worth RM231.65 million. Condominiums and apartments were second with 487 transactions worth RM137.92 million. This was followed by 1-, 2- and 3-storey semi-detached houses (175 transactions, RM114.98 million) and detached houses (118 transactions, RM58.08 million).

Zeroing in on the adjacent districts of Kota Kinabalu, Penampang and Putatan, this conurbation made the bulk of the volume of residential property transactions in the state, with 830 transactions worth RM433.18 million, says Max.

“Compared with 4Q2023, the number and value of residential property transactions in Kota Kinabalu, Penampang and Putatan increased 0.36% and 2.31% respectively.

“The property type most transacted in Kota Kinabalu, Penampang and Putatan in 4Q2024 were condominiums and apartments, with 288 transactions worth RM113.06 million. This is followed by 1-, 2- and 3-storey terraced houses with 252 transactions worth RM117.55 million.

“Next are 1-, 2- and 3-storey semi-detached houses with 86 transactions worth RM72.03 million. The number of detached residential properties transacted in the combined districts of Kota Kinabalu, Penampang and Putatan in 4Q2024 was 65 transactions worth RM58.08 million,” he adds.

Max notes that the next conurbation with the highest volume of residential property transactions during the review period was the combined districts of Sandakan, Labuk-Sugut, Tungod and Kinabatangan with 242 transactions worth RM75.33 million. This was followed by the Tawau district with 197 transactions worth RM69.49 million.

On average, the price growth of 2-storey terraced houses sampled was 2.57% year on year (y-o-y), says Max.

“The highest y-o-y price growth was recorded in Ujana Kingfisher with an increase of 3.08% to RM467,000. This was followed by Millenium Height (3.05% to RM675,000), Taman Sri Borneo (2.82% to RM730,000), Taman Jindo (2.8% to RM735,000), Luyang Perdana (2.52% to RM815,000), Taman Indah Permai (2.08% to RM490,000) and Golden Hill Garden (1.68% to RM910,000),” he explains.

Quarter on quarter (q-o-q), average prices at Ujana Kingfisher and Millenium Height increased 0.75%, followed by Taman Sri Borneo (0.69%), Taman Jindo (0.68%), Luyang Perdana (0.62%) and Golden Hill Garden (0.55%). Prices held steady from the last quarter for Taman Indah Permai.

Rental rates in Taman Indah Permai improved 3.23% y-o-y to RM1,600 per month while Ujana Kingfisher recorded a rental growth of 2.56% y-o-y to RM2,000 per month. This was followed by Taman Sri Borneo (2.44% to RM2,100 per month), Millennium Height (2.38% to RM2,150 per month), Taman Jindo (2.27% to RM2,250 per month), Luyang Perdana (2.08% to RM2,450 per month) and Golden Hill Garden (1.85% to RM2,750 per month).

“The average y-o-y rental rate growth for the 2-storey terraced house sampled is 2.4%,” says Max, adding that there was no rental growth for these houses q-o-q.

The average gross yields stood at 3.67%. “Comparing the gross yield in 4Q2024 with 4Q2023, there was a slight decrease of 0.01 percentage point.”

The highest gross yield was registered at Taman Indah Permai (3.92%), followed by Millenium Height (3.82%), Taman Jindo (3.67%), Golden Hill Garden (3.63%), Luyang Perdana (3.61%), Ujana Kingfisher (3.58%) and Taman Sri Borneo (3.45%).

For the 1-storey terraced houses sampled, the average y-o-y price growth for the quarter in review was 3.76%, down from 3.91% in 4Q2023, says Max.

“The highest y-o-y price growth was recorded in Taman Tuan Huat, with an increase of 3.92% to RM530,000, followed by Taman Sri Kepayan (3.7% to RM560,000) and Taman Nelly Ph 9 (3.67% to RM565,000).”

On a q-o-q basis, Taman Tuan Huat registered 0.97% growth, followed by Taman Sri Kepayan (0.91%) and Taman Nelly Ph 9 (0.9%).

In terms of rent, Taman Tuan Huat’s improved 3.03% y-o-y to RM1,700 per month, followed by Taman Nelly Ph 9 with 2.94% to RM1,750 per month and Taman Sri Kepayan with 2.78% to RM1,850 per month.

Q-o-q, there was no rental increase.

“The average gross yield achieved by 1-storey terraced houses was 3.84%, an increase of 0.01 percentage point compared with 4Q2023,” says Max.

“The highest yield was registered at Taman Sri Kepayan with 3.96%, followed by Taman Tuan Huat with 3.85% and Taman Nelly Ph 9 with 3.72%.”

The condominiums in the monitor recorded an average price growth of 1.3% y-o-y in 4Q2024.

“Likas Square registered the highest y-o-y price growth, up 3.6% to RM435 psf, followed by Bayshore Condominium (2.7% to RM580 psf), Alam Damai (1.7% to RM615 psf), The Peak Condominium (1.5% to RM675 psf) and Radiant Tower (1% to RM505 psf). No y-o-y price growth was recorded for Jesselton Condominium, Marina Court and 1 Borneo Condominium.”

“Q-o-q, Likas Square registered a price growth of 1.2%, followed by Radiant Tower (1%), Alam Damai (0.9%) and The Peak Condominium (0.7%). No q-o-q price growth was recorded for the others,” says Max.

The average y-o-y rental growth for the condos is 2.63%, with Radiant Tower achieving an increase of 4.35% to RM1.85 psf/month, followed by Jesselton Condominium (3.33% to RM2.07 psf/month), 1 Borneo Condominium (3.03% to RM1.72 psf/month), Likas Square (2.44% to RM1.56 psf/month), Alam Damai (2.38% to RM1.95 psf/month), The Peak Condominium (1.92% to RM2.04 psf/month), Marina Court (1.89% to RM2.08 psf/month) and Bayshore Condominium (1.67% to RM1.69 psf/month).

“Q-o-q, 1 Borneo Condominium increased 3.03%, followed by Likas Square (2.44%), Alam Damai (2.38%), Radiant Tower (2.13%), The Peak Condominium (1.92%), Marina Court (1.89%), Bayshore Condominium (1.67%) and Jesselton Condominium (1.64%),” says Max.

Condo yields registered an average gross yield of 4.13%, an increase of 0.06 percentage point compared with the yield in 4Q2023.

1 Borneo Condominium registered the highest yield with 5.22%, followed by Radiant Tower (4.39%), Likas Square (4.29%), Marina Court (4.12%), Jesselton Condominium (4.1%), Alam Damai (3.81%), The Peak Condominium (3.62%) and Bayshore Condominium (3.51%).

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