Sunway Property sets RM1.1b sales target this year

KUALA LUMPUR: Sunway Bhd’s property division Sunway Property, which has planned RM2 billion worth of launches, is targeting RM1.1 billion sales this year, said its managing director Sarena Cheah.
“We will focus a bit more on how to get sales of RM1.1 billion, because without (new) launches, we still have products to sell for example at Sunway Velocity, we still have Velocity Residences, which is still selling,” she told reporters at a media briefing yesterday.
“It is important that we watch the market and not rush in to add stocks to the overall market. That’s not our strategy. The RM2 billion are our planned launches but we hope to get the RM1.1 billion sales,” she said.
Last year, the developer achieved a sales target of RM1.1 billion, after its initial target of RM1.4 billion was revised downwards due to delays in the launches of Sunway Geo Residences 3 and the offices on top of Sunway Velocity Mall.
Recall that it scrapped plans to sell the offices and will instead retain it as a property investment asset. As of September 2016, its unbilled sales stood at RM1.7 billion.
Cheah said the RM2 billion planned launches involves 10-12 projects with residential properties making up 70-80% of the launches; 50% of these residential properties are priced below RM1 million.
The RM2 billion includes launches within integrated developments in Paya Terubong and Sunway Geo as well as the Sunway Iskandar township.
“We will watch carefully and put the right product into the market to meet the needs. We will not rush to launch but we will prepare for a launch when the market picks up, because all the locations that we are in are very strategic and we are very confident of them,” she added.
Sunway Property is also ramping up its landbanking activities this year focusing on strategic lands suitable for standalone projects and integrated or transit-oriented developments.
“We have always been looking but this year will be more because we want to re-balance our portfolio to be more central-region-focused and there has been more (proposals) coming to us. We will be more busy in that sense, looking for more landbank,” Cheah said.
“We are getting more proposals. People are looking at what they can get, whether they should develop or sell their land. Prices are adjusting slightly. For us, we will go in when we feel it is a fair price,” she added.
Last week, it acquired 8.45ha of land opposite Sunway Velocity, bringing its total landbank to 3,301ha with a gross development value (GDV) of RM50.5 billion.
The newly acquired land will be developed as Sunway Velocity TWO, with a GDV of RM2 billion. More than 70% of the project will comprise residential units, to complement Sunway Velocity, which comprises 75% commercial units.
The RM4 billion Sunway Velocity project has clinched RM1 billion in sales of commercial and residential units since 2008 while Sunway Velocity Mall has recorded footfall of one million to date.
Cheah said the mall, which opened with 80% occupancy last year, is 97% occupied today and is confident of fully letting out the mall by June.
The 350-room Velocity Hotel will be completed in the second half of 2017 while the 240-bed Velocity Hospital will be completed in the fourth quarter of 2018.