Sunway Property sets sales target of RM2b for this year
Developer raked in RM1.55b in 2019, surpassing its goal
PETALING JAYA: Sunway Property is targeting sales of RM2 billion in 2020 after raking in RM1.55 billion last year, surpassing its target of RM1.3 billion.
Sunway Bhd property division managing director Sarena Cheah attributed its success in 2019 to being quick to react to a market that is now more sensitive in terms of products that purchasers want to buy, welllocated properties, right pricing, partnering banks to provide financing packages for purchasers and the Home Ownership Campaign.
“Overall, the property market is still stable. We’re confident that if we position our products and price it right, we’ll be able to hit our RM2 billion sales target this year,”
Cheah told reporters after a media briefing here yesterday.
Describing the property market as “fragmented”, she said certain locations are not doing very well and yet there are certain locations where house prices are still appreciating.
“It’s important to understand the local market and position ourselves accordingly. Looking at the encouraging response last year, there is still inherent demand and if we play it well, we should be quite okay,” said Cheah.
She opined that the property oversupply situation in Malaysia will slowly correct itself.
The property developer’s unbilled sales stand at RM2.8 billion.
Cheah said the group will launch RM3.5 billion worth of properties this year, of which 70% (RM2.44 billion) will be in Singapore, in line with its plans for geographical diversification, and RM1 billion in Malaysia.
“We’re looking at 50:50 (international and Malaysia sales) but there is a potential that international may be higher because of the stronger currency. We’re confident of what we put out in the market and that it will be taken up,” she said.
Sunway Property first ventured into Singapore in 2007 and has since delivered RM14.98 billion worth of properties there. The coming launches in Singapore this year are residential properties Parc Canberra in Canberra Link (RM560 million), Ki Residence in Clementi (RM1 billion) and Park Avenue Residences in Tampines (RM880 million).
In Malaysia, the launches will be in the Klang Valley (RM691 million), Penang (RM250 million) and Johor (RM100 million) with unit prices within the range of RM600,000 to RM800,000.
Cheah said all its launches this year will be within integrated developments or are transit-linked, in line with the market demand. Purchasers snapped up 80% of Sunway Property’s launches which were transit-linked or integrated, constituting 90% of its launches last year. Commercial launches will constitute 30% of its launches this year and will be within integrated developments.
In addition, RM1.1 billion of investment properties are being built in Malaysia.
As of December 2019, Sunway Property has 3,362 acres of landbank with a gross development value of RM59 billion for up to 15 years.
“This year we will continue to be aggressive in our landbank (acquisition), targeting both Malaysia and international,” said Cheah.
The property developer is also making headway in China, the UK and Australia.