KUALA LUMPUR: Sabah's real estate market is expanding as more first-time homebuyers, homeowners looking to upgrade, and investors look for quality properties to buy.
Record-breaking numbers were achieved at a real estate expo held at the Sabah International Convention Centre in March.
The property media network-organised expo created fresh interest in the real estate market, demonstrating that investors are once again prepared to invest in this industry.
More than 263 units of real estate were sold during the course of the exhibition, with sales totaling more than RM124 million. This is a 55 per cent increase in sales amount and a 46 per cent increase in units sold when compared to the previous year's exhibition.
According to an insider in the sector, Encorp Bhd. and other developers from Peninsular Malaysia are drawn to the expanding Sabah real estate market.
"We know that some property developers are looking for little plots of land to build apartments or large tracts to construct houses and industrial properties. They may either purchase and start developing the land right away after getting all the necessary approvals, or they can wait until they are more confident in the prospects," he told NST Property.
He claimed that the cost of land is gradually rising.
Early this year, industrial land at Kota Kinabalu's Delta Light Industrial Centre was sold for RM208 per square foot (psf), while leasehold land at Jalan Mat Salleh went for RM200 psf, slightly higher than the transacted prices in 2022.
A prime leasehold parcel for The Residency @ Sutera was sold for RM360 psf in June 2022 (lost size 18,091 sq ft) as opposed to RM315 psf in November 2021 (lot size 14,208 sq ft).
A detached site (11,075 sq ft) at Bukit Padang for a golf villa was purchased for RM241 psf in February this year.
"I believe that when developers come to Sabah, they know what they are doing. It's a good market for international buyers of real estate," he said.
Last year Encorp teamed with Jentayu Sustainables Bhd, formerly Ipmuda Bhd, to jointly develop a 1.6-acre piece of land at Bukit Kepayan in Kota Kinabalu.
The venture is Encorp's first property development in Sabah as part of its expansion plan.
The developer recently announced that it will develop Cahaya Kristal, consisting of 166 apartments in a 10-storey tower block with built-ups ranging from 530 square feet to 790 square feet and prices starting at RM440,000.
Group chief executive officer Hazurin Harun said that Sabah's thriving real estate market, beautiful scenery, and unrivalled views had encouraged the company to introduce Cahaya Kristal as its first residential project in Kota Kinabalu.
Hazurin said the company hopes to become the preferred choice in Sabah in this new market.
"With our 23-year track record in Peninsular Malaysia and the exciting incentives we offer, we invite homebuyers to experience a harmonious blend of nature and convenience in this new residential project," he said.
Encorp Development Sdn Bhd, a wholly owned subsidiary of Encorp, will develop the low-density leasehold development.
The project is expected to have a gross development value of RM79.2 million, and completion is scheduled for July 2026.
Hazurin said that the majority of units have either a panoramic view of the South China Sea or a tranquil, pastoral perspective of Sabah's hinterland's verdant hilltops.
He said that families and downsizers seeking a balance of nature, solitude, and convenience will be drawn to the careful design.
The project's prime position and its close proximity to major transit hubs and educational institutions are among its salient features, Hazurin said.
He said the development also encourages sustainable living by using energy-efficient lighting, water-saving techniques, and environmentally friendly building materials.
"We understand the importance of sustainable and environmentally conscious practises in our projects. We have diligently conducted comprehensive soil tests and incorporated the authorities' requirements for drainage and stormwater management facilities.
"Furthermore, we have made it a priority to incorporate the requirements set forth by the relevant authorities to ensure that our development plan adheres to the highest standards of safety and efficiency and causes minimal risk to the surrounding areas," he said.