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Sandakan is strengthening its role in 2026 as a key economic centre in Sabah, with a residential market focused on quality living and long-term stability. Demand is increasingly driven by buyers seeking secure, well-planned communities, particularly within gated townships that offer enhanced privacy and lifestyle value.
Residential growth is concentrated along major corridors such as Jalan Utara and Jalan Labuk, which serve as the backbone of Sandakan’s urban expansion. Improvements in local road networks and better airport connectivity are enhancing accessibility, supporting both daily commuting and tourism-related activity.
These infrastructure upgrades contribute to stronger residential demand, particularly in established and emerging neighbourhoods connected to key economic zones.
Modern developments in Sandakan emphasise secure living environments, with gated and guarded townships becoming the preferred choice among middle- to upper-income buyers. Properties are increasingly designed with a focus on quality construction, elevated layouts, and locations identified as flood-free.
This shift toward higher standards of living reflects changing buyer expectations, with greater emphasis on safety, comfort, and long-term property value.
The Sandakan property market offers a range of residential options across different segments:
Sandakan continues to offer a balanced property market with opportunities for both homeowners and investors. The growing preference for gated communities supports stable demand in the premium segment, while government incentives for first-time buyers help sustain activity in the mid-range and secondary markets.
The rental market remains resilient, driven by professionals in sectors such as healthcare, aviation, and public services. High-rise residences and well-located landed homes are particularly sought after, offering consistent rental returns.
Additionally, the presence of auction opportunities provides alternative entry points for buyers seeking value within established residential areas.
The 2026 residential landscape in Sandakan spans multiple price tiers:
With continued infrastructure improvements and a strong focus on quality living, Sandakan is positioning itself as a stable and attractive residential destination in Sabah.
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