Popular Residential Areas in Sabah: Long-Term Investment & Living Guide (2026)
Why Sabah Is Attractive for Long-Term Property Investment
1) Tourism-driven economy with diversified support sectors
Sabah’s economy is anchored by tourism, services, trade, agriculture, and public administration, making it structurally different from manufacturing-heavy states.
Malaysia’s overall economic growth of around 4.9% in 2025 supports travel, hospitality, and services-led regions such as Sabah, particularly in urban centres like Kota Kinabalu.
2) Property prices grow slowly but tend to be more stable
National housing data shows that Malaysia’s residential prices increased by only +0.7% year-on-year (MHPI Q2 2025, preliminary), indicating a controlled market environment.
Sabah typically experiences slower price cycles, with lower speculative activity and stronger reliance on end-user demand.
3) Rental demand supported by tourism, education, and public sector
Sabah’s rental market is driven by:
Tourism and hospitality professionals
Education and healthcare workers
Government and public-sector employees
This results in steady, practical rental demand, particularly in Kota Kinabalu and its surrounding residential districts.
4) Interest rate environment supports owner-occupier demand
With Bank Negara Malaysia’s OPR at 2.75% (6 November 2025), affordability remains manageable for local owner-occupiers, helping to stabilise the residential market while limiting speculative inflows.
5) Infrastructure and urban improvement initiatives
Ongoing infrastructure upgrades, including Kota Kinabalu urban road improvements, airport upgrades, and port-related developments, continue to enhance long-term liveability and connectivity within Sabah’s capital region.
Kota Kinabalu City Centre: Core Urban & Rental Market
Why this area fits “live-in + rent”
Kota Kinabalu CBD is the administrative, commercial, and tourism core of Sabah. Rental demand is driven by professionals, expatriates, and long-stay visitors, while owner-occupiers value walkability and proximity to offices and amenities.
Best for
Rental-focused investors
Urban professionals
Buyers seeking city-centre living
Connectivity + access
Direct access to major city roads
Short drive to Kota Kinabalu International Airport
Close to government offices and business districts
Lifestyle / amenities
Waterfront areas and shopping malls
Offices, hotels, hospitals, and cafés
Tourism and commercial facilities
Typical property types
High-rise condominiums
Serviced apartments
Commonly searched projects (examples)
Jesselton Quay
Jesselton Residences
The Shore @ Kota Kinabalu
Riverson SOHO
Riverson Residence
Marina Court
Api-Api Centre Serviced Apartments
Api-Api Apartment
Sutera Harbour Marina Court (CBD-facing blocks)
Aeropod Commercial Suites (CBD fringe)
FAQ
Is rental demand strong? Yes, one of the strongest in Sabah
Suitable for owner-occupiers? Yes, for urban lifestyle buyers
Short-term or long-term rent? Both, depending on project rules
Luyang
Why this area fits “live-in + rent”
Luyang is a mature urban neighbourhood close to the city centre, known for strong local demand and stable long-term rentals rather than speculative buying.
Best for
Families
Professionals working in the city
Investors seeking stable occupancy
Connectivity + access
Quick access to Kota Kinabalu CBD
Well-connected local road network
Lifestyle / amenities
Hospitals and clinics
Local retail and food outlets
Established residential community
Typical property types
Mid-rise apartments
Landed houses
Commonly searched projects (examples)
Luyang Perdana
Luyang Hillview Apartments
Luyang Phase 1–Phase 6 residential areas
Taman Luyang
Taman Tai Hong
Luyang Commercial & Residential Apartments
FAQ
Rental profile? Long-term local tenants
Price volatility? Generally low
Investor or own-stay market? Both
Likas
Why this area fits “live-in + rent”
Likas is a well-established family-oriented area close to the city, offering a quieter living environment with consistent owner-occupier demand.
Best for
Families
Long-term owner-occupiers
Connectivity + access
Short drive to city centre
Connected via coastal and inner-city roads
Lifestyle / amenities
Parks and sports complexes
Schools and healthcare facilities
Typical property types
Landed houses
Low- to mid-rise apartments
Commonly searched projects (examples)
Likas Heights
Taman Likas Jaya
Taman Indah Permai
Taman Bukit Indah (Likas area)
Taman Foh Sang (Likas fringe)
Kingfisher Park (Likas–Inanam corridor)
FAQ
Is it good for rental? Moderate, mainly family tenants
Suitable for speculation? No
Main buyer group? Local families
Sadong Jaya
Why this area fits “live-in + rent”
Sadong Jaya offers practical urban living at more affordable price points, with demand driven by city workers and local households.
Best for
Budget-conscious buyers
City workforce
First-time buyers
Connectivity + access
Close to city centre
Easy access via local arterial roads
Lifestyle / amenities
Local shops and markets
Daily-use amenities
Typical property types
Apartments
Terrace houses
Commonly searched projects (examples)
Sadong Jaya Apartments
Taman Sadong Jaya Phase developments
Taman Sri Gaya (Sadong Jaya zone)
Sri Gaya Apartments
Sadong Jaya landed housing clusters
FAQ
Rental demand? Consistent but not premium
Capital growth profile? Gradual
Target market? Local residents
Penampang
Why this area fits “live-in + rent”
Penampang is a suburban growth area adjacent to Kota Kinabalu, popular with owner-occupiers seeking more space and affordability.
Best for
Families
Long-term own-stay buyers
Connectivity + access
Direct road access to Kota Kinabalu
Close to education and healthcare hubs
Lifestyle / amenities
Community shopping areas
Schools and local services
Typical property types
Terrace houses
Semi-detached and detached homes
Commonly searched projects (examples)
Taman Penampang
Taman Suria Penampang
Peak Vista Penampang
Taman Nosoob Penampang
Taman Rose Penampang
Grand Penampang Residences
Donggongon residential areas
FAQ
Rental demand? Moderate
Best strategy? Long-term ownership
Investor profile? Mainly owner-occupiers
Bundusan
0) Why this area fits “live-in + rent”
Bundusan is a convenient suburban hub linking Penampang and Kota Kinabalu, favoured by families for daily accessibility.
Best for
Middle-income families
Long-term residents
Connectivity + access
Good road links to KK and Penampang
Easy access to main commuter routes
Lifestyle / amenities
Local malls and shops
Schools and community facilities
Typical property types
Landed houses
Mid-range residential projects
Commonly searched projects (examples)
Bundusan Villa
Beverly Hills Bundusan
Taman Bundusan
Taman Jubilee Bundusan
Bundusan Heights
Bundusan landed housing clusters
FAQ
Is it family-friendly? Yes
Rental market? Mainly long-term
Growth outlook? Stable
Inanam
Why this area fits “live-in + rent”
Inanam is one of the more affordable residential zones near Kota Kinabalu, attracting first-time buyers and local families.
Best for
First-time buyers
Budget-conscious households
Connectivity + access
Connected to KK via main roads
Access to industrial and employment areas
Lifestyle / amenities
Local markets and retail
Schools and community services
Typical property types
Terrace houses
Apartments
Commonly searched projects (examples)
Taman Inanam
Inanam Capital Apartments
Kingfisher Inanam
Kingfisher Sulaman (Inanam fringe)
Taman Sejahtera Inanam
Inanam landed residential areas
FAQ
Rental demand? Local workforce
Price level? Among the most affordable near KK
Best use? Own-stay or long-term hold
Tanjung Aru
Why this area fits “live-in + rent”
Tanjung Aru is a beachfront lifestyle zone with strong image appeal, best suited for lifestyle ownership rather than mass rental strategies.
Best for
Lifestyle buyers
Second-home owners
Connectivity + access
Close to airport and city centre
Coastal road access
Lifestyle / amenities
Beachfront parks and resorts
Recreational facilities
Typical property types
High-end condominiums
Low-density residential projects
Commonly searched projects (examples)
Tanjung Aru Residences
Aru Suites
Aeropod Residential Suites
Aru Heights
Tanjung Aru landed residential areas
FAQ
Rental demand? Seasonal
Best strategy? Long-term lifestyle hold
Yield-focused investment? Not ideal
Sutera Harbour
Why this area fits “live-in + rent”
Sutera Harbour is a premium waterfront enclave focused on asset quality and lifestyle rather than high rental yields.
Best for
High-net-worth buyers
Lifestyle and asset-holding investors
Connectivity + access
Close to city centre and airport
Direct access to waterfront facilities
Lifestyle / amenities
Marina, golf course, resort hotels
High-end dining and leisure
Typical property types
Luxury condominiums
Serviced residences
Commonly searched projects (examples)
Sutera Avenue
Marina Court Sutera
Sutera Harbour Residences
Sutera Avenue SOHO
Sutera Avenue Retail & Residential
FAQ
Rental market? Premium, limited volume
Risk profile? Lower liquidity, higher quality
Suitable for long-term holding? Yes
Karambunai
Why this area fits “live-in + rent”
Karambunai is a resort-style coastal area designed for long-term lifestyle ownership rather than active rental turnover.
Best for
Second-home buyers
Lifestyle-focused investors
Connectivity + access
Coastal road access
Longer commute to city centre
Lifestyle / amenities
Resort environment
Beach and recreational facilities
Typical property types
Resort residences
Landed homes
Commonly searched projects (examples)
Karambunai Ocean Resort Residences
Nexus Resort Residences
Karambunai landed residential estates
Karambunai Golf & Country residential areas
FAQ
Rental demand? Limited and seasonal
Target buyer? Lifestyle owners
Investment horizon? Long-term hold
Reference
Reuters – Malaysia Economic Growth (Q4 2025 / Full Year 2025)
Department of Statistics Malaysia (DOSM) – Gross Domestic Product (GDP) by State 2024
National Property Information Centre (NAPIC) / JPPH – Malaysia House Price Index (MHPI), Q1–Q2 2025 (Preliminary) [PDF]
Bank Negara Malaysia (BNM) – Monetary Policy Decision: Overnight Policy Rate (OPR)
Sabah State Government / Ministry of Works Malaysia – Infrastructure & Development Updates
Sabah State Government (official portal)
Ministry of Works Malaysia (infrastructure & road projects)
Malaysia Airports Holdings Berhad (Kota Kinabalu Airport upgrades)
