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SEPANGGAR: The costs of properties in Sabah and particularly within the city capital area are expensive due to the high cost of materials and land values. The price of a semi-detached house located within 5km radius from the city centre can easily fetch a price of between RM700,000 and RM1.2 million, said Wah Mie Group managing director, Kong Kwok Wah yesterday.

He said when speaking to reporters after the launch of the Taman Sepanggar build-and-sell detached showhouse unit that they were also facing sand shortage.

“The last time, we faced shortage in cement supply. I hope it will be resolved, but as it is now, we are constantly facing such problems,” he said. But aside from that, he promised that Wah Mie Group would continually upgrade the quality of their properties.

“We are aiming towards zero defects as much as possible. Of course, in some areas, our hands are tight because much of our materials are bought from the mass market such as bricks and sand, but in areas where we can control, we will upgrade,” he said.

He added that in some of their newer build-and-sell concept detached single and double storey houses they have even incorporated the use of shingle roofs, which are produced only in US. “The roof material is expensive, but it carries with it 30 years warranty,” he said.

In his speech earlier, Kong said that most of the units in Taman Sepanggar were already sold. He added that they were launching 32 units of semi-detached houses yesterday.

Wah Mie Group will be launching the sales of another 100 units of terraced houses possibly by October this year, he said.

He said that the Taman Bukit Sepanggar consists of 380 acres, where approximately 40 percent of the area was kept as green lung. “That is why Taman Sepanggar stands out as a unique development with plenty of greens and natural landscape,” he said.

Source : New Sabah Times, Published on 23 August 2009
Image Source : Wah Mie Group

My Say :In addition to the two factors mentioned above, I believe the following factors also play their parts in the high properties value.
(1) Greed; from my experience a developer normally takes about 40% - 50% profit from each property sale. If a Developer can lower down its gross profit margin, the selling price of a property will become lower and attractive and this will make the property easy to sell.
(2) Speculation; There are cases where a project registered a high take up rate or even sold out in a few days after being launched. The ones who booked or bought the properties the most are the Owners/Directors & Co. This is where Resale starts to come in. Price will go up by another 20% - 40% depending on the response from the public / potential buyers.

If the selling price of newly launched project is not controlled, the price of properties in the secondary market will go up like crazy. This is what happening in Kota Kinabalu at the moment.


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