2d) © Development SHAREDA eer iii) ttyey eed 3 ‘Message From The Minster Of Local Government And reer) ee a {An Oversiew Of Property Developments Launched By Coo eee Oey oe eee ey oe een eee et Roce ene renters HER Hee a een Cee ete) ees Price Hike Of Properties In Sabah: An Overview 9. Price Comparison For Building Materials Between Sabah KK) OL cre ara) One ee eeerd rp 10.1 The Negative Impact Of Telekom (TM) As An Essen eee ee Renee ten ese eee eet ere te eer eae ey ‘Approval Of Development Plans rete gee ee eet ee eae ent) 0.5 The Potential And Challenges Faced By Property Developers coroners steno setae oe ceca cel a uetir CeaS Dee etn eee et oo Roe ea eee eee ee ed Pevrmesrommrey oat entrants Pee eee ee Cetera a eel Pecans ana1.0 MS sae | am glad and grateful 1 receive such a revealing and informative report. In this Age of Information, the value of information sels of most imporanceto many. | read through this report and found it tobe stimulating andthe data compiled isjust outstanding. Apractical guide to all players involved inthe property development industy and more, lwould lke o extend my compliments tothe SHAREDA Research Unit fr dedicating ther time and effort fulfilling this inaugural repor. Their innovative approach willdefinitely propel the property developmentindustryin Sabah to another level |-can see that the report ao dented numerous pressing issues and problems faced by SHAREDA members with government departments. Lam pleased o inform that our government departments are more than wilin to work hand in hand with SHAREDA to resolve the issues in question, am proud to say that under the leadership of Mr Francis Goh as president of SHAREDA, SHAREDA had been extensively reimagedto bea better and excellent professional association, The assistance provided by all ellow SHAREDA members in fulfilling the promise of building affordable homes isgreally appreciated bythe government. Working together and bringing us closer will ensure hal we progres fast without neglecting any industry, ' boiove there will be more contributions from Mr Francis Goh and SHAREDA in years to come as key players in Sabah property development industy. Thankyou IK ‘Yang Beshormat Datuk Seri Panglima Mali Haji Haji NoorSince | joined SHAREDA in 2004 as a council member, | constant highlighted the importance of producing property development annual repor. ough the formation of an exclusive research team consisting of property executives who specialize in compiling market studies and market analysis by recording property news, property launches, price range, project sales performance and gross development value of each development projec launched by our SHAREDA members. However this vision was not executed until now. [ter | took over as president of SHAREDA on 27 March 2013, | decided to accommodate this dea of creating an annual report as one of my promises to my fellow SHAREDA members. There isa need for crucial and detailed information on property development and market analysis in Sabah, With this Property Development Annual Report prepared by SHAREDA, it will act as relevant source of reference for related government depariments professional bodies, eal estate players, SHAREDA members and our counterparts REHDA in West Malaysia and SHEDAIn Sarawakas well In the past, SHAREDA's member relied on market repors prepared by professional valuers and economic archers. The ‘of figures that didnot accurately reflect the total revenue generated by Sabah proper pers. The gross development value of a project was not recorded due to developers reluctance to disclose and only the number of units of the property built were included. Absence of the right information may diminish the accuracy of such valuation. This may also afec the gross development value [GDV) and gross contract value (GCV) fa precise market assessment, Therefore, this SHAREDA inaugural annual reporaimsto reveal he actual data which eflectsthe importance of propery development industyt0 Sabah’s economy and affirmed that this industry is performing in parwith or even superior than the 4 main Key industries namely palmoil, oil & gas tourism andmanufacturing sectors, The SHAREDA Council and | representing 183 SHAREDA members are proud to present our very fist, Property Development Annual Report. With this report, we aim to provide greater clarity and serve as a juiding beaconinthe property development industry of Sabah Thankyou Francis Goh Mr. Francis Goh, AS.D.KAn Overview Of Property Developments Launched WAS a alk DAM nel a0 enc acer eae 3.1 INTRODUCTION Through observation ofthe period before Match 2015, SHAREDA ined lacked accurate and adequate lformation made available the public due tothe shortage ‘experisein analysing the propery market and conducting matke surveys. Eventhough ou secretariat di record sales and property launches by SHAREDA member, ‘ourmembers would also rely on property reports and outlook condited by exer profesional bodes and vals Propery development projets wth a Gross Development Value (GOV) ofRM Obilion pr annum hadben archived by SHAREDA membersfor3 conseculve years {rom 2010 uni 2012. wasrepretabethat thorough market assessment of these 3 years couldnatbe exectted Under the helm of out visionary Presiden, Francs Goh SHAREDA property rescarcheam inedlately took constructive measurestorealisesuch areport tough the ‘ecruimentfsiul and experianced propety executives. This annual report prepared by SHAREDA isa pilot projettha willbe produced annually with precise data statics formarkel reference alla estate playersin Sabah 3.2 PROPERTY MARKET TREND ANALYSIS SHAREDA membershave generated an esimated Gross Developmen Value of RMS. ilion to Sabahsstate economy fr the year 2013. Such an achievement has proven abe ranked thirds comparc\o other major industries in Sabah, namely palmolindsty (RM 15. bilo) 01 & gas industry (RM 10 bili) uri nesty [RMS 6 lion and manufacturing ndust'y RMS billion) Iris ddheareningto note thatthe conrbutionsby developers ate often misconstued and projected a wrong impression a public and goveinment agencies Hwee, [7 78,00 a ee or ecrhcticeiaae ” emacs dove ‘3 | Mixed Developments ** 2014 2,008,000,000 my a (integrated sevelopments) Mined deepens come of reall mal, anchor mal, hel ToRTEOV | FSEAAADOT] — ste sevice sparen SOMO, SOVO andbusness sues ‘The recorded RM 7-562 bllon GOV is derived fom various residential, commercial industial an mixed development pojecs implemented by SHAREDA members. Resulting a spillover efecto over 164 related Indust, “—4.4 PROPERTY DEVELOPMENTS ARE CONCENTRATED ON 5 MAJOR DIVISIONS IN SABAH ‘Among te total GD of RMY,562,214,000, the West Coast Region has always been the hotest region which produced a GDV of RM 5, 133,878,000. Lahad Datu is ranked second in the race sth a total GDV of RMB7000,000 and is the highest i the Cast Coat regan. The Interior rion has produced a total CDV of, Re15, 900,00 ranking thir, Tawa inthe East Coast gon sn 4th place producing a total GDV of RMS47,936,000 and Sandakan ranked fith with & GOV of 'RW#77/500,000, Kut vision eranked lst with total GD of 800,000,000. ae] ages] ao aa [DRE [CORES RRS [RET pT Cie RT peor ENT 2 festontrepen —[uessteoree | tabruns | Romo [aan serum [00009 stows | searaone | oassun | SSTa Sinan aweanes_[ sen | We ents | see] pare f somo | stews | erseace feast Taseuooo [zis |W Teun [WA ne oa 4.5 TOTAL GROSS DEVELOPMENT VALUE HAS DROPPED BY 25% IN 2013 AS COMPARED TO PREVIOUS YEAR. According to SHAREDA satistics and records ftom 201002012. Although Sabah property developmen industry has achieved a igificant growth wih total CDV of RM TObilion consecutively inthe past 3 years. Yet ln 2013, the sectorhas experienced s substantial drop in supply for about 25% die othe oowing factors ()Thedecrease in GDV inthe fist quater of2013 was neiabl and amicipated- One fhe notable reasons isthe delay ofthe developmen’ plan approvalproces de tothetechnicalnstureothe aproval procedure. The delay iemainy caused the following procedures 2. Environmental impact Asessment(A)-anassessment ofthe posibieimpactofa proposed projectmay have eflecsonthe environment b. Trafic impact Assessment (TIA)~ study which asssses the adequacy ofthe existing o future transportation infrastructure to accommodate addtional trafic flows reatedby apropoted development «New ring that necessitates the submission of development plans 10 Cenal Board for perusal before approval given by local councl 4, Cerain sensitive developmentunder DBKK's jurisdiction requiresthe consent andendorsementhy Sabah Sate Cabinet. €e, Delay of endorsement or ub-vsion and conversion approval by Has Sumi Speculations onthe imposition of Goods and Sevice Tax (GST) and uncerainties about the Sudget 2013 had aso affected the property maker vemendousl and Gelayed the launching of new developmen inthe Ath quaner of 2013. Some negative remarks and presumptions by market observes deterred investors fom {engaging he market. Rumourson goversmen measures (0 curb speculation in he property makel andthe increase in Real Propeny Gain Tax RPG) to cab sho tm gain by propery investors are some reasons forthe slowdown, i) Slow sales performance duetodifculy in obtainingendinancing rombanksby purchasers— —? = BB > t0ene770 sULD Aremevts AND CONDOMINIUMS DEVELOPMENTIN KOTA KINABALU Fe eae or he cay fate ee a Soe MC! te os Cl ce ope geet Re erence For example the Second lt at Jalan Bundusan has saling rice ranging rom RM 3.5 million to RM 4 rillor/ace. i common that a developer ean only build 12 unitsflandederaced-house per acre of and The developer will have to sel ata minimum price of RM 750,000funt in order o aan 220% profit or RM. 150,000 per unt. The return of investment at RM 1.8 rillon wil nt be compatible to the capital input for RM2.5 milion asthe investment factors only 50% of the nial capital nvestrus ‘This growing trend in developing condominiums and apanments can be afmed with recent launches in year 2012 = 2013, Among the sable launches daring his peti are Topicana Landmatk and Lido Four Seasons Residence in Ponamnpang, The SutzinKolombong, and Jessekon View in Luyang. According to SHAREDA'S corded satis, there are 4652 units of apartments and condominiums launched in 2013 with a GDY of RM 1.651 billion. The launching pris ofthese high tise residential condominioms loealed within 12km fadius from city conte range from RM 380 10 M5001 fees5.7 PROPERTY DEVELOPMENTS LAUNCHED IN 2013 - THE WEST COAST REGION OF SABAH ‘Highise Condominiums & Apatiments Developments “ — "7 roe eee Te | Pemwiee [ome | somue ] pie | INT RST] Giaee] cre sn oui ‘co 7 [termes ham 7 | ewiment | oe | anos | anaas-aonano | wecaea | temmomen | anna() PRICES FOR HIGH RISE CONDOMINIUMS IN KOTA KINABALM It is noted that there are afew condominiums with the price range af RM 6300 RM 1,175) bitin km fom the ety cent a spite the relatvey higher ples erst isjstfable for such pricing duet is premium locaton with sea view that these condominiums ate bull on, fr instance ay 21 Tao at ikas Bay The Loft Cat KK Cy Centre, iverson Walk and The Pesk SOHO Tanjung Lipa Lika Duet liited supply premium location with sea view it isunikay to havemany high end. condominium development in the near future. Hence, the matket price of condominiums and apartments expected hover around RMSOOKs Higher selling price or sth premjum properiess justifiable as vacant land within km in city capital ‘snow soldat RM 300% RM 400/54(i) DEPLETING SUPPLY OF LANDED DEVELOPMENTS. The ats collected by SHAREDA Research Unit concluded that 4421 units of landed residential pods were launched in 2013, The number of landed development is lower comparedte condominium developments. Among helanded properties aunched ae Taman CerahPh 7B Tuaran Bypass, Taman Rima 2 & 3 at Menggatal, O'S Gayang at Sulaman, and Vistana Heights at ramanis. Most of the landed developments are located beyond 13k from the KK Giy2.8. PROPERTY DEVELOPMENTS LAUNCHED IN 2013 IN THE WEST COAST REGION Landed (Residential Property Developments inthe West Cast Region co PESTS Ta a srs wish ‘2ith the eseaatng land cost inthe town cence, developers are moving towards suburban aea tbeyond 13hm fom city centre where lad prices per acre are sill telatvely cheaper. Developers ate sill able to build move landed residential ‘roduets to meet the ever ready market demand. Many landed residential were developed in suburban ateas of Kota Kinabalu such tke Taman Seri Juta at Kinart, Taman Bukit #jau8Green Hill Park at Turan Bypas, Taman Albion at Pulutan Menggatal, Taman Rimba at Bandar Siera and Taman Seri Gayang at JalanSulaman. Landed residential developments remained the mos sought ater despite ‘ising land and ding cass This is mainly duet the lower risk natreo Koi RM400,000 per unit and JPN house price capped at >RM50,000 per uni. MPS infrmed hat in Sandakan, the new projec launched by PRIMA spiced at -RM260,000 per unt, SHAREDA assured that all allordable home providers willbe given a recogition ceria for thir contibutions by MLGH, Inthisnote, MPS assured SHAREDA thatthey will prortse and asttrack approval or afordablehousingschemedevelopmentinSandakan SHAREDA also highlighted to MPS on other causes of delay in DP approval such asthe compliance of DID or MSMA or Detention Pond, IR or Trafic Impact ‘Assessment Report or road networks and EIA pot for sensitive area; the compliance of 10% Open Space fot highrise residential and commercial developmen proposed fr conslderationstoinchidethe spon and recreation actives inthe retesion pond, gym ales, common property with covered roofing between the2 blocks, et requested the deferment of assessment pad for issuance of Dra Tile of properties tobe allowed as practiced by DBKK: the resriton of 30% Bumipuera quota and application for waiver of Bumiputera Units wer also discussed in-depth and to pursue futher with he Government SHAREDA conc by puting in record of thanks and appreciation to ¥.thg, Datuk. James Wong, MPS President and his Senior Oficers who came out nll force to welcome and meet with SHAREDA Council in a succestul and dynamic roundtable discussion to mitigate issues of concern and o sock for amicable solutionsintandem with SHAREDA‘ssveowardsthebetermentf housing and propety developments in andakan and troughouthe state centers Sandskan Municipal Counc, rey hospitality given during our Poet eee Sentero eerSHAREDA Council Members (2013-2014) with Guest of Honour Y.B. Datuk Seri Panglima Haji Hajiji Haji Noor (Minister of Local Government and Housing, Sabah)SHAREDA PROPERTY RESEARCH UNIT Disclaimerese aco me See oa ee eee cers RECT re er RT et