If you're from Kota Kinabalu, you would know this already, Kota Kinabalu City is rapidly being over-developed. It's too fast, too quick, the people are too slow to comprehend what is happening, too many investors investing on the wrong sectors, it's like a gold rush without any gold to be found.
What is happening? Is the government spending too much money on Sabah? I doubt it. It's more like investors trying hard to be the quickest to hold on to a property entity in Kota Kinabalu. I understand that everyone in Malaysia thinks that Kota Kinabalu is the next big city in the country, but hold up. Being the next big city should mean better opportunities. Now let's see what opportunities there are in the city at the moment.
Shopping Malls - We have Centre Point Sabah, Wisma Merdeka, 1Borneo Hypermall, City Mall, Likas Square, Megalong Mall, Central Shopping Plaza, 1Place Shopping Mall, Suria Sabah Shopping Mall. Rapidly being developed, malls in and around Kota Kinabalu are plenty. What's not plenty is the fact that there isn't much retail outlet with a running retail business for the public. Why is that so? High property prices, that's why! How could someone charge RM5,000 per month for a ground floor outlet when they're only selling things like sandals or shoes or perhaps a boutique. On average, a retail outlet's overhead costs includes, workers' salary, electricity, products and rental. But with a rocket high rental price, and with the typical LOW levels of Sabahans spending power, how would a retail survive? Other means! That's how. Sometimes they resort to other businesses or online selling. To me, that way of life doesn't do justice to businesses. So again, what kinds of opportunities does these rapid over development give to Sabahans? Nil!
These investors aren't even stopping anytime soon. Just look at KK Times Square, they're already starting up their other phases. Do we need them? Yes! But should they be over charging rentals or lot sales? No! Should DBKK (Kota Kinabalu City Hall) interfere? Yes! Can they? No! What they could have done was to not approve certain developments within the city. Plan the city grid properly, not to give in to the federal government and investors just simply.
In other words, we're stuck with this for now. Over priced properties, Sabahans and their low spending culture, all of these will stay for some time (I'm predicting about 5 years more). Unless!!!!!
Unless, in the coming General Election, a new government in Sabah forms up. Sabah's an open book for now, but the book is messy, no matter how open it is. If things don't start to get fixed, we'll see more disasters in the near future.
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