Sabah Real Estate: An In-Depth Discussion with a Top Sales Expert
This article summarizes a podcast discussion with Hemsley Ah Fook, a top real estate sales expert from Sabah, Malaysia. The conversation explores the Sabah property market, tourism, and the unique characteristics of living and investing in the region.
Sabah's Unique Appeal
Tourism Hotspot
Sabah is a renowned tourist destination, particularly for Chinese tourists, boasting attractions like Pulau Sipadan in Semporna, often referred to as the "Malaysian Maldives." Its natural beauty gives a sense of national pride.
The Sabah Sunset Experience
A must-do in Sabah is experiencing the sunset, especially from Shangri-La. It's described as a watercolor painting in the sky, an experience beyond typical sunsets.
Sabah Real Estate Market
Pricing and Land Scarcity
Sabah's property prices, especially in Kota Kinabalu (KK), are comparable to Kuala Lumpur (KL) due to limited land suitable for development. The mountainous terrain restricts construction.
KK's Tiered Locations
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First Tier: Highly sought-after areas like Luyang, Damai, and Likas, located close to the city center. These are mature residential areas with strong demand.
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Second Tier: Located 4-5 kilometers from the city center, including areas like Penampang, Kolombong, and Inanam. These offer more affordable options.
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Third Tier: Outskirts like Tamparuli, Sepanggar, Tuaran, Putatan, and Papar. These are further from the city center and offer entry-level housing options.
Traffic Considerations
Sabah's traffic can significantly impact travel time. A 40-45 minute drive in KL might only reach the outskirts (third tier) of KK, emphasizing the importance of location.
Demographic Trends
Staying Local vs. Urbanization
While many Malaysians urbanize to places like KL, Sabah has a mix. Talented individuals may choose to stay in Sabah if they find opportunities, making them the "elite of Sabah's elite."
Young People and Opportunities
Young people see opportunities to earn a good living in Sabah and prefer to stay in their hometown. The demand for housing from locals is strong.
Luyang: A Prime Residential Area
Luyang, Likas, and Damai are mature residential areas with established commercial centers, schools, and amenities, making them desirable for families. It's considered the "OG of OG" due to it's longstanding popularity.
Unique Sabah Market Dynamics
School Proximity
A unique factor in Sabah's property market is the importance of proximity to schools, with parents often buying homes in specific areas to ensure their children can attend desirable schools. Properties in DBKK (Dewan Bandaraya Kota Kinabalu) areas are particularly valued.
The "LCP" Approach
When buying property, especially for first-time buyers, consider "LCP":
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Loan: Determine your loan eligibility.
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Capital: Assess your available cash for upfront costs.
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Property: Choose a property within your financial means.
Investment Opportunities
Gaia Street and New KK
Gaia Street in KK is a historical area similar to Georgetown in Penang or Bukit Bintang in KL. The area from Imago to Gaia Street will become "9KK," a new township. This area is becoming a hub for Airbnb investments.
Airbnb Market in KK
The demand for Airbnb rentals in KK is high, particularly in the city center. The supply in prime locations is limited, making it a promising investment.
Investment Advice
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Commercial: Focus on locations in the city center with high tourist traffic. The "new KK" area is a prime spot.
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Residential: Prioritize first-tier locations like Likas and Luyang for rental demand, especially from families seeking access to good schools. Second-tier locations offer more affordable options.
Sabah's Potential
Sabah's property market is estimated to be 5-10 years behind KL, indicating significant room for growth and development. The real estate industry needs more manpower, presenting opportunities for those interested in joining the field. It's a good environment to make a good income while staying in your hometown.
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