SP Setia sees strong property demand in Melbourne

Good take-up rate for its biggest project in Australian city

MELBOURNE: SP Setia Bhd expects robust growth for property demand in Melbourne, Australia, as the city’s population is projected to surpass that of Sydney over the next decade.

This is reflected in the strong take-up rate for the developer’s latest offering in the city.

“Sapphire By The Gardens is our biggest project in Melbourne to date and it has a take-up rate of 95%,” president and CEO Datuk Khor Chap Jen told reporters at the project’s ground-breaking ceremony yesterday.

Located at the heart of Melbourne city, opposite the Unesco World Heritage-listed Carlton Gardens, the project comprises an apartment tower, with 345 residential units. The building is connected by a skybridge to a second tower, which will host a five-star Shangri-La hotel.

The Sapphire By The Gardens is estimated to have a gross development value (GDV) of A$960mil (RM2.84bil) and will be completed in three years’ time.

SP Setia chairman Tan Sri Wan Mohd Zahid Mohd Noordin said the developer had started building homes in Melbourne since late2010. To date, the company has completed three projects – Fulton Lane, Parque Melbourne and Maison Carnegie – with a combined GDV of A$732mil (RM2.17bil).

He said there are three projects under way, namely, Sapphire By The Gardens, the Marque Residences at Prahran and UNO Melbourne.

The Sapphire By The Gardens ground-breaking ceremony was also attended by the mayor of Melbourne Sally Capp.

The built-ups of the apartments range from 538 sq ft to 7,104.2 sq ft, with the largest units being the penthouses. Prices for the most affordable unit starts from A$550,000 (RM1.63mil).

The most expensive unit is a 7,000-sq-ft luxury penthouse, which comes with 10 car park bays. It has a price tag of A$29mil (RM86mil).

It is touted to be the most expensive apartment in the Melbourne property market.

“There were some interested buyers for the unit and we have already sold a penthouse worth A$14.8mil,” Khor said.

The project’s leading contractor Multiplex is represented by its regional managing director Graham Cottam at the ground-breaking ceremony.

Project launched: (from left) Cottam, SP Setia deputy president & COO Datuk Wong Tuck Wai, Khor, Malaysia’s High Commissioner Datuk Sudha Devi, Capp, Wan Mohd Zahid, Shangri-La Asia Ltd CEO Lim Beng Chee and SP Setia Australia CEO Datuk Choong Kai Wai at the ground-breaking ceremony in Melbourne.