Tourism and government allocation continues to boost the property market in Sabah. WTW Sabah director Cornelius Koh said prospects for resort hotels outside Kota Kinabalu will increase once the Pan Borneo Highway opens up new areas in Sabah.

According to Koh, visitor arrivals have been growing in numbers at 4% per annum over the past 10 years. "We believe there is potential for more upscale resort hotels because the existing ones have been enjoying 80% occupancy. Furthermore, we have been having around 2,400 upscale resort hotel rooms over the past 18 years."

When looking at the residential sector, Koh predicts the condo market to be challenging in 2019 due to limited new supply of landed properties over the years. Prices have sustained. Kota Kinabalu now has about 10,000 condos and has a substantial incoming supply of 1200 units this year and 2400 units next year.

It is not expected for occupancy in stratified malls to be improved in Koh's opinion when it comes to the outlook of Kota Kinabalu's retail sector. "However, well-positioned and well-managed malls that are wholly or substantially controlled by developers are seeing improved occupancy."