Kota Kinabalu housing trends in the first quarter of 2026 show landed homes pulling ahead of condos as limited land pushes prices higher.
Land‑based homes outpace condos on price growth
Data from the latest Rahim & Co Chestertons Kota Kinabalu Housing Property Monitor indicates that selected one‑storey terraced schemes posted an average year‑on‑year price increase of 5.38%, while two‑storey terraces rose 2.88%. By contrast, comparable condominiums recorded only 1.75% growth.
Land scarcity drives price growth.
Even though apartments and condos remain the most frequently traded residential product in the city and its surrounding districts, the report notes that the scarcity of developable land is limiting new landed projects. Most existing terraces sit in mature neighbourhoods and now form part of a secondary market that benefits from structural supply constraints.
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Max Sylver Sintia, director of the local office, said the consistency of price movements across the selected schemes points to a market underpinned by sound and sustainable fundamentals rather than cyclical volatility.
Owner‑occupiers dominate a steady market
Overall residential activity in Sabah held steady during the quarter, with 1,364 transactions totaling RM593.26 million. Volume rose 1.11% year‑on‑year, while transaction value climbed 8.24%.
Transaction volume slipped slightly from the previous quarter, but values kept rising, suggesting buyers are still willing to pay for quality assets despite a more measured pace of activity. The analysis attributes this to continued demand from owner‑occupiers rather than speculative investors.
Affordability continues to shape the market. Homes priced below RM300,000 accounted for 610 sales, or 44.7% of all transactions. Another 434 deals fell in the RM300,001‑RM500,000 bracket, meaning properties under RM500,000 made up more than three‑quarters of total sales.
Properties priced between RM500,001 and RM1 million represented 18.3% of the volume but nearly 30% of the value, indicating healthy demand from upgraders. Units above RM1 million comprised 5.2% of sales yet generated over one‑fifth of the total transaction value.
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Greater Kota Kinabalu remains the market hub
The combined districts of Kota Kinabalu, Penampang and Putatan delivered 716 transactions worth RM364.24 million, or 52.5% of Sabah’s residential volume and 61.4% of its value.
Within this region, condominiums and apartments led in activity, with 317 deals amounting to RM124.84 million. Terraced houses followed, tallying 209 transactions worth RM99.96 million.
Given the tight land supply and rising construction costs, price pressure is likely to continue, but developers appear mindful of affordability, which may temper any sharp spikes.
Looking ahead, the residential market in Sabah is expected to stay stable despite broader economic uncertainties. The combination of limited developable land and a strong owner‑occupier base suggests that landed homes will keep delivering solid capital appreciation, while condo projects will see more differentiated performance based on location and quality.
