Property value expected to appreciate by 5-10pc, says Mayor
Published on: Saturday, January 24, 2015
Kota Kinabalu: Property value is expected to appreciate by 5 to 10 per cent in the next few years, bolstered by the State's economic resilience and steady growth of core sectors. Mayor Abidin Madingkir on Friday said activities in the tourism, oil and gas, manufacturing and oil palm sectors over the past decade have elevated household income and businesses and resulted in a bullish demand for properties in all segments. This had been part of the State's lure to foreign and domestic investors who have viewed Sabah as the "to-go place" to conduct their businesses.
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"In fact, there are even a number of foreign financial institutions that can now be found in the city," he said during the opening of Sabah Property Expo 2015 at 1Borneo, here, Friday. Madingkir said the launch of several flagship projects worth RM45 billion of the RM135 billion that was pledged by Putrajaya to the Sabah Development Corridor (SDC) has further sealed Sabah's status as an attractive investment destination. Furthermore, the spillover of the Economic Transformation Programme as carried out by the Sabah Economic Development and Investment Authority and the aggressive effort of SDC and revenue from oil palm has already driven the value of properties up. As a result, demand for residential, commercial and industrial properties will be more focused to ensure positive economic performance and the city's livability factor, he explained.
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"The strong development has seen the expansion of more premium property within the 5km radius of Kota Kinabalu. "Many developers will be enticed to maximise their opportunities here," said Madingkir.
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As a result of this boom, the city has now been deemed as the third most advanced retail destination in the country after Klang Valley and Penang. This had been largely due the bullish retail segment that is bolstered by the perceived rising household income and vigorous tourism. "The city has now made its mark as one of the hotspots for retail outside of Kuala Lumpur, Penang, Johor Bahru, Kuching and Melaka," he said. At present, there are 17 malls in the city accounting for 2.59 million sq ft in space and nine more retail centers are set for completion by 2016. They include Aeropod Tg Aru, Lifestyle @ Jesselton Waterfront, KK Sea-Water Front Mall, Pacific City, Grand Merdeka, Imago @ KK Times Square and the Sutera Avenue. He said these developments are expected to have a significant impact on the retail landscape, here. Madingkir assured that the city had also built quite a reputation as one of popular retirement and holiday destinations for many foreigners due to its favourable weather, infrastructure, scenic sites and cost of living. Stay up-to-date by following Daily Express’s Telegram channel.
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