The review period observed the maiden entry of several notable retailers into the Kota Kinabalu market, mainly under the trade categories of F&B, fashion and sports apparel. — Bernama photo
KUCHING (Jan 8): Sabah anticipates further recovery in the performance of its hotel and resort segment, supported by growth in its tourist arrivals as well as increase in direct flight frequencies into the State.
This was among the highlights from Knight Frank in its real estate report for the second half of 2023 (2H23) released yesterday.
The federal government announced a 30-day-visa-free entry to nationals from China and India, subject to security clearance, commencing December 1, 2023.
The investors’ confidence towards the recovery and potential of Sabah’s tourism sector was also observed via the unveiling of
notable launches in the pipeline.
“Melingsung, Papar is set to welcome a five-star luxury resort offering 450 rooms. The development, a joint effort between Taiwan’s Sinyi Group and United Kingdom-based InterContinental Hotels Group (IHG) and Resorts, comes with an estimated cost of RM1 billion,” Knight Frank said in the report.
“Sabah Urban Development Corporation Sdn Bhd (SUDC) and Borneo Semporna Resort will jointly construct 188 units of chalets in Semporna.
“The proposed development will form the first phase of a 41.4-acre seafront project located in close vicinity to Semporna’s jetty.”
Meanwhile, the monthly passing rental rates of selected shopping malls in the CBD range from RM1.34 per sq ft to RM24.62 per sq ft depending on the mall, unit visibility/size/floor level, rental structure, and other factors.
Knight Frank said the review period observed the maiden entry of several notable retailers into the Kota Kinabalu market, mainly under the trade categories of F&B, fashion and sports apparel.
“These include the South Korean sports apparel retailer MLB, Portuguese luxury clothing brands Sacoor Brothers and Sacoor Blue, German craftmanship Braun Buffel and handmade artisan tea brand KOI Thé into Imago Mall,” it added.
“Harvey Norman, a prominent household name in Malaysia that is founded in Australia, has expanded its first physical retail store in Suria Sabah Shopping Mall.
“Spanning across circa 32,000 sq ft of retail space, it offers a comprehensive selection in electrical, computers, furniture and bedding retail.
“Additionally, the retail components of larger mixed-use developments, namely Sutera Avenue and Jesselton Quay are garnering popularity in their F&B offerings as they generate high footfall from local consumers and visitors.”
Prime shopping malls in the city centre are witnessing a strong recovery in terms of footfall and tenant performance, Knight Frank said, leading to the expansion and debut of prominent brands into the local scene.
“Mall operators will continue to engage and facilitate the entry of new brands to solidify their respective differentiated market positioning, shifting away from overlapping tenant mix that was observed in the past.
“Sabah’s domestic tourism will continue to improve steadily, whilst international tourism remains on a gradual recovery path and is expected to take longer to recover.
“Nevertheless, the potential of Sabah’s tourism industry is positively viewed, as reflected in the ongoing interest in the hotel and resort sub-sector, denoted by recently launched resorts and known projects in the pipeline.”