Top builders urged to invest in Tg Aru project
Published on: Saturday, October 18, 2014
Chris Maskilone and David ThienKOTA KINABALU: The State's property sector is expected to pick up by early 2015 through new major development projects at the precinct of the old Jesselton port area and Tanjung Aru Eco Development.Sustainable Energy Development Authority (Seda) Chairman Datuk Dr Yee Moh Chai said some of the key factors driving the increase in Sabah's real estate market included the region's lower capital value, availability of financing, low interest rate and transparent legal and title system.
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Opening the Sabah Property Expo 2014 at the Suria Sabah here, Friday, he said the Sabah property rise was in a preliminary stage and has much potential for growth."Many of the country's biggest developers are making their presence felt in the State. The development focus has been mainly in Kota Kinabalu but growths in other parts of the state are also gaining momentum," he said.The rapid and unprecedented supply of retail malls coming to completion over the next years had also cemented Kota Kinabalu's position as Borneo's gateway city, he said.Currently there are 17 malls in the State Capital offering a total net lettable area of 4.59 million square feet while nine more retail centres are expected to be completed by 2016.
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Among the major projects set to change the landscape of the city were the Aeropod Tanjung Aru by SP Setia, Jesselton Waterfront, KK Sea Water Front Mall, Pacificity as well as the Sutera Avenue by Mah Sing Group.Meanwhile, Sabah Housing and Real Estate Developers Association (Shareda) President Datuk Francis Goh Fah Shun urged Malaysia's top developers to invest in Sabah's leisure property development like the Tanjung Aru Eco Development which will be world class and second to none in Malaysia.
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"You are encouraged to invest in leisure property development for more hotels and resort development such as the Tanjung Aru Eco Development so as to get away from the active competition by local and peninsula-based developers who always target residential and commercial mixed development only in urban areas."Over three million tourists visited Sabah last year and there has been an increase in tourism arrivals in 2014. Having said that, there is a need for more hotels and resorts, and other tourism-related leisure properties to be developed to support the demand of the increasing number of tourists," he said.He said this in a welcoming function at his Wisma Kinsabina office in Penampang, Friday, with Shareda council members for top executives from Sunway Berhad, Sime Darby Property Berhad, SP Setia Berhad, UEM Sunrise Bhd, Gamuda (Property) Berhad, Tropicana Corporation Berhad, IGB Corporation Berhad, Eastern & Oriental Berhad, Mah Sing Group Berhad, IOI Properties Berhad and 20 other or so listed and honoured by the Edge Magazine.He said Sabah developers hope to participate in The Edge Property Excellence Award competition in future."The property sector is, of course, very important. As we all know, the property development sector is a key driver of the Malaysian economy and is central to the financial health of some 140 related industries.""We are very honoured and proud that Sabah has been chosen as the destination for the first ever networking trip with the property industry leaders and winners of The Edge Property Excellence Award, and my thanks goes to Datuk Abdul Rahman Dahlan, our Minister of Urban Wellbeing, Housing and Local Government, for his assistance and strong support for making your visit here to Kota Kinabalu as one of the state promotional activities in real estate development."Goh spoke strongly on the excellent prospects on investing in leisure properties or projects, and show by example what he has developed on beachfront property and planned to develop in future – hotel and mountainside resort at the vicinity of Kinabalu Park."Sabah lacks leisure properties like beachfront villas, paddy field villas to sell to investors. Do you think a rich Singaporean staying in a posh condo in Singapore would want to come to Sabah and buy another posh condo to stay? "No, he would be looking for a beachfront villa, or paddy field villa, something different. Sabah just does not have these products to sell," Goh said."If you invest in Tanjung Aru Eco-Development (TAED), you will save a lot of hassle of acquiring lands under trying conditions if at all there is any more for sale for and big enough for resort development. You just point to the piece you want (with title and reclaimed) and bid for it and take off from there if you get it," he said."I will give RM1,000 to anyone who just provides me with information on any beachfront resort zoned land for sale," he said, adding that it is difficult to find any more such pocket parcel piece of land."I feel the Malaysia My Second Home programme has not been properly promoted. Sabah is the best state in Malaysia for the success of MM2H."Do you know how many foreigners bought properties in Sabah or properties sold to foreigners? About three hundred a year. I went to the Immigration to check how many applicants were approved for the MM2H programme. Only about a hundred a year."Why? Partly, because we do not have the suitable property products to sell to them even if they want to stay in Sabah."TAED is expected to fill such gaps in demand and supply. According to Goh, if 10,000 foreigners renting properties to taste or try out the Sabah environment lifestyle and culture before deciding whether to buy property to stay, it would be good for developers and investors too."In Bali, a kilometre of beach has 20 resort hotels. In TAED, a 1.6km beach has planned only six resort hotels," Goh said, telling the audience that each hotel room at Magellan Sutera Harbour Resort which was sold recently was worth RM2 million in valuation.Shareda Deputy President Chew Sang Hai called on developers like Sunway to set up Sabah's first theme park.Meanwhile, the project director for Tanjung Aru Eco Development Sdn Bhd, Peter Adam, dismissed comparisons by West Malaysian-based developers to Iskandar Malaysia.He delivered his presentation entitled, 'Tanjung Aru Eco Development the next property investment hotspot?'"Iskandar Malaysia is not a comparison to Sabah which is better. Tanjung Aru Eco Development is second to none in Malaysia, and is a world class development," he stressed.On the pricing for TAED lands for development, Adam said it would be based on the highest bidder on an open tender exercise. He said there are sale target figures and reserve prices which are confidential now.Stay up-to-date by following Daily Express’s Telegram channel.
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