Where Property Transactions Are Actually Happening in Sabah Today

Sabah’s property market often gets described as steady. At MAREC 2026, however, it became clear during a session by Sr Raja Sundra Lingam @ Sunny Kelvin of Smiths Gore Sabah that steady does not necessarily mean evenly distributed.

A large share of residential transactions is now taking place around Kota Kinabalu and its surrounding districts. This concentration is not entirely surprising. Economic activity, infrastructure improvements and lifestyle migration have long been pulling demand towards the capital region. What is becoming more noticeable is how dominant this corridor is compared to other parts of the state.

Data shared during the session showed that more than half of Sabah’s property transactions are happening within the Kota Kinabalu belt, including Penampang and Putatan. It is a pattern that reflects where demand is most active, but also where liquidity tends to be strongest.

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Markets such as Sandakan and Tawau continue to record activity, but at a very different pace. For buyers, these areas still offer relatively accessible entry points. For investors and agencies, they represent markets that move more gradually. In contrast, the Kota Kinabalu corridor is increasingly where urgency is felt. Deals tend to move faster, competition can be sharper and pricing signals are more visible.

At the same time, the perception of Sabah as a lower-priced property market is starting to shift. Average residential values have been edging upwards, even though a significant portion of transactions still sits within the mass-market range. As Sr Raja Sundra Lingam pointed out, this creates a market where affordability still anchors demand, but urban-driven pricing pressure is becoming harder to ignore.

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For practitioners on the ground, these shifts are less about statistics and more about day-to-day realities. A busier transaction environment usually means more coordination between buyers, agents and agencies. Payment timelines become tighter. Expectations around clarity and documentation increase, particularly when multiple deals are running concurrently.

As urban centres continue to absorb the bulk of activity, the mechanics of how transactions are managed will matter just as much as where they take place. Greater visibility and structure in deal payments are gradually becoming part of how agencies adapt to a more concentrated and active market landscape. This is one of the areas where digital transaction management tools such as PaymentXchange are beginning to find relevance, reflecting a broader shift towards clearer and more accountable property processes.

👉 Learn how agencies are bringing greater clarity to property deal payments with PaymentXchange.

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