Covid-19 vaccine roll-out brings hope of a brighter future, says Sunway

Sunway Berhad’s property arm Sunway Property is working toward reducing the level of completed and unsold properties worth about RM400 million this year.

The group’s director and property division managing director Sarena Cheah is expecting more takers this year, given that the Covid-19 vaccination has started to roll-out and this has built up confidence in the market.

Cheah said that this year onwards will be brighter, on expectations that up to 80 per cent of all Malaysians or 27 million people will receive the vaccination by the first quarter of 2022.

“There is light at the end of the tunnel…we have to move ahead. In terms of completed stock, we are holding only about RM400 million and we have over RM1 billion that is undergoing construction which is our typical inventories. But typically, what we would like to focus on are the completed properties.

“In the central region, we have very minimal completed stock. The majority of the stock is in Iskandar Malaysia (Johor) but I think we should be able to see that moving very soon as the investment property is coming up and the community is being built up,” she said during a virtual briefing yesterday.

Sunway Property aims to roll out RM2.8 billion worth of new property launches in Malaysia, Singapore, and China this year and has set a sales target of RM1.6 billion for 2021, 23 per cent higher than what it achieved last year.

In 2020, Sunway Prosperty achieved RM1.3 billion in property sales, which was higher than its target for the year.

Of the new launches, 40 per cent or RM1.1 billion worth of properties will be launched in Klang Valley.

The new launches comprise Sunway Belfield in Kuala Lumpur (GDV: RM320 million), D’Hill @ Sunway Damansara in Kota Damansara (GDV: RM220 million), Sunway Artessa in Wangsa Maju (GDV: RM300 million); and Jernih Residence in Kajang (GDV: RM270 million).

Cheah said the properties will be offered to the public at below RM1 million.

The first launch this year will be Sunway Belfield, located a mere 400 meters away from the Maharajalela Monorail Station.

“We are launching Sunway Belfield Tower A with a GDV of RM320 million. This freehold project which overlooks Merdeka 118 has garnered 80 per cent booking and we are looking to launch the second block,” she said.

To accommodate new norm lifestyles, the developer will be integrating a co-working space as a facility to accommodate those who are looking to work from home.

“Over the period of the pandemic, I believe many people have experienced a reset of priorities. Many have developed a greater appreciation of their families and their health and wellbeing. The strength of the location of all our new launches which are within matured neighbourhoods will reduce time spent by our residents on commuting for work, school, or even grocery shopping and allow the time to be spent more meaningfully with the family or working out at our development’s various facilities,” Cheah said.

The second project to launch is Sunway Artessa, a sub-urban transit-oriented development (TOD). The serviced apartments in this RM300 million project are larger units and designed for bigger families.

Cheah said typical units have a size of more than 1,300 square feet.

“Sunway Artessa will have a community urban farm plot to provide residents with the opportunity to grow fresh vegetables besides having more than 20 other health and fitness facilities within the development,” she said.

For D’Hill @ Sunway Damansara, Cheah said Sunway Property will launch the first block with a GDV of RM220 million.

Cheah said for homebuyers who are looking for value, they can consider the freehold transit-oriented Jernih Residence in Kajang.

For eligible first-time homebuyers and young families, the developer will have a selection of units for D’Hill and Jernih Residence, priced from RM270,000.

The remaining 60 per cent of launches will be international projects comprising an Executive Condominium in Singapore, Parc Central Residences (GDV: RM910 million), and Phase 3 of Sunway Gardens Condominiums in Tianjin, China (GDV: RM780 million).

Cheah said Sunway Property will also be busy this year as it looks to complete its portfolio of investment properties under construction in its various integrated townships across Peninsular Malaysia.

The pipeline of investment properties includes Sunway Hotel Big Box, Johor (GDV: RM160 million), Sunway Carnival Mall expansion, Penang (GDV: RM350 million), Sunway International School (GDV: RM200 million), and Sunway Medical Centre expansion (GDV: RM600 million) in Sunway City Kuala Lumpur.

The continued development of new investment properties in its integrated townships is consistent with Sunway’s philosophy as a co-investor with all its property buyers.

Sunway has maintained ownership of up to 50 per cent of the properties within its townships through its build-own-operate business model which has generated substantial value for the community.

As of December 31, 2020, the developer has over RM11 billion of assets under its management.

Its unbilled sales stand at RM2.2 billion, providing clear earnings visibility for the immediate two to three years.

Source: NST