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KOTA KINABALU – In the past two years there has been greater interest shown by buyers for condominium residential properties, especially those having a sea view, resulting in the value of such properties shooting up by almost 100 %.

This observation was made by Chong Choon Kim, Managing Director of C H Williams Talhar & Wong (S) Sdn Bhd, one of the leading valuation surveyor firms in the state.

"Prices for condominium properties have shot up from RM250psf to at least RM400psf in a matter of slightly over two years."

These properties include existing ones, like the Jesselton Condominium and the Radiant Heights, and the new block of the Peak Condominium on Signal Hill.

According to the 2010 CH Williams Talhar & Wong property market report, the selling prices for the Peak Vista II that is now coming into the market, range from RM465 to as high as RM868psf.

Price offered for condominium units at the Signal Hill Residence, also in Kota Kinabalu, are from RM470 to RM565 psf whilst those at the Bayshore (Phase 3) at Likas Bay are going at RM430-450 psf.

New trend by plantation owners

Other condominium properties open for sale in Kota Kinabalu include : Hartamas Height at Kepayan (RM250 psf & above); 1Sulaman, Kuala Menggatal along Jalan Sulaman (RM248 psf); and the Peak SoHo, on the foothills of Signal Hill (RM340-576 psf).

A trend that has caught Chong's attention is that the property market in Kota Kinabalu "is fueled by plantation owners from the east coast of Sabah".
For example, a substantial proportion of the new Peak Vista condominium units on the foothills of the Signal Hill here are bought by these east coast planters.

"Otherwise KK properties would not have appreciated so much in the last two years if not for these buyers," he said in an interview here.

He says the property sector of Sabah's economy this year will remain bright and value is expected to continue to appreciate at a more moderate pace than previous years.

He said the reason for the 'moderate pace' of growth in values and prices in 2010 is because properties in Sabah, especially in the state capital, had appreciated a lot in the past five years.

More growth expected

"Growth this year is likely to grow instead at a slower rate, by about 10%, perhaps 5 %," Chong predicts.

"On the whole, he said, value of properties in Sabah generally speaking, including those in Sandakan and Tawau, is still appreciating.

Chong also noted that in terms of property development in Sabah, "Everyone seems to be thinking about building or opening a hotel".

This seems to be evident around the capital city where the hotel sector is "most active".

He pointed out some of the many hotel properties that are under construction or have opened for registration.

These include a boutique hotel and spa under construction next to where the former Cathay Cinema used to stand, the Gaya Centre next to Wisma Sabah being converted into a hotel, and there is another hotel project at the Asia City area.

"In Kota Kinabalu, any new building is very likely to be a hotel," he observed.

Chong said that unlike east coast towns of Sandakan, Tawau and Lahad Datu that are more dependent on agro-based economy, Kota Kinabalu has wider potential for property development.

This, he adds, is because it is not only the state's administrative headquarters, but also a centre for communications, education, the services sector and tourism industry.