Investment Property in Sandakan

Investment Real Estate in Sandakan

Sandakan property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Sandakan.

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Search Map of Sandakan Investment Real Estate

Sandakan (Malaysian pronunciation: [ˈsaan daˈkan], Jawi:

سنداکن‎, Chinese: 山打根; pinyin: Shāndǎgēn; Jyutping: saan1 daa2 gan1) formerly known at various times as Elopura, is the capital of the Sandakan District in Sabah, Malaysia. It is the second largest city in Sabah after Kota Kinabalu. It is located on the Sandakan Peninsula and east coast of the state in the administrative centre of Sandakan Division and was the former capital of British North Borneo. The town has an estimated population of 157,330 while the surrounding municipal area has a total population of 396,290.

Before the founding of Sandakan, Sulu Archipelago was the source of dispute between Spain and the Sultanate of Sulu for economic dominance in the region. By 1864, Spain had blockaded the Sultanate possessions in the Sulu Archipelago. The Sultanate of Sulu awarded a German consular service ex-member a piece of land in the Sandakan Bay to seek protection from Germany. In 1878, the Sultanate sold north-eastern Borneo to an Austro-Hungarian consul who later left the territory to a British colonial merchant. The German presence over the area raised concern among the British. As a result, a protocol was signed between the British, German and the Spanish to recognise Spanish sovereignty over the Sulu Archipelago, in return for the Spanish not intervening in British affairs in northern Borneo.

Sandakan began to prosper when the British North Borneo Company (BNBC) started to build a new settlement in 1879, developing it into an active commercial and trading centre as well as making it the main administrative centre for North Borneo. The British also encouraged the migration of the Chinese from British Hong Kong to develop the economy of Sandakan. However, the prosperity halted when the Japanese occupied the area. As the war continued and Allied bombing started in 1944, the town was totally destroyed. Unable to fund the costs of the reconstruction, the administrative powers of North Borneo were handed over to the Crown Colony government. Subsequently, the administrative capital of North Borneo was moved to Jesselton. As part of the 1948–1955 Colonial Office Reconstruction and Development Plan, the crown colony government began to develop the fishing industry in Sandakan.

Sandakan is one of the main ports for oil, tobacco, coffee, sago, and timber exports. Other economic activities include fishing, ship building, eco-tourism, and manufacturing. Among the tourist attractions in Sandakan are Sandakan Heritage Museum, Sandakan Cultural Festival, Sandakan War Memorial, Sepilok Orang Utan Sanctuary, Turtle Islands National Park, and Gomantong Caves.

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The financial stability of Sandakan has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

Buy to Rent in Sandakan

Renting out your Sandakan buy-to-rent investment property can grow wealth and income.

Whatever your goals with investment property in Sandakanare – preparation is key.

Set goals based on how much rental yield will be required and the local rental yield rates in Sandakan and be prepared to change your initial outlook.
Thoroughly research the Sandakan location with a special emphasis on fringe areas outside the main Sandakan metropolis that may be valued lower than their better-known neighbours. Rental yields of around 5% are still attainable in certain areas of Sandakan.
Ensure that your target investment property in Sandakan appeals to professionals. This is a demographic that ensures maximum income and low voids.
Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent such as Physis Realty with local knowledge and experience of property legislation will give you the best chance of success.
You may think that managing your Sandakan properties yourself is an easy option, but are these savings justifiable when you run into Sandakan red tape? Physis Realty Sandakan office in downtown provides you with peace-of-mind and leaves you time to plan your next move in the growing Sandakan buy-to-rent sector.

With our expert guidance, investing in Sandakan provides the secure knowledge that your money is working harder than it would in a local Sandakan bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Sandakan, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Sandakan property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Sandakan

Flipping property in Sandakan

Flipping property is when we advise clients to buy a Sandakan property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Sandakan market has a time to react to the renovation.

The Flipping Strategy in Sandakan

Investment property flipping in Sandakan is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Sandakan real estate investments are sometimes referred to by professionals as ‘distressed’ Sandakan real estate.

What is distressed Sandakan property:

Sandakan property in need of renovation
Sandakan real estate with a change of puropose and use
Oversold Sandakan property
Bank repossessions in Sandakan

Put simply, long term investors in Sandakan purchase the property, renovate it and make it a lot more attractive to potential buyers.

Calculate profit that you make from Sandakan investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Sandakan property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

Experienced property developers in Sandakan use a minimum profit value of 22% when looking at potential Sandakan projects. The reason for this is because there are lots that can go wrong in Sandakan property flipping and working on a potential margin of 22% should still leave a good margin of error.

Luxury Property in Sandakan

For luxury property investors hoping to add a superb property in {AsainCity} to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

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A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Sandakan, Physis Realty caters particularly to high net-worth individuals and families in Asia. A luxury real estate investment in Sandakan should be entrusted to only the highest-quality agency.

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