Selangor Dredging to clear inventory of unsold properties

This article first appeared in City & Country, The Edge Malaysia Weekly, on September 2, 2019 - September 08, 2019.

From left: Loong, Teh and Chieng at SDB’s 58th annual general meeting. Photo by Mohd Izwan Mohd Nazam/The Edge

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Selangor Dredging Bhd (SDB) will continue to clear its inventory of unsold properties through various sales and marketing activities. The group’s unsold inventory totals RM111 million to date while unbilled sales of ongoing projects in Malaysia and Singapore amounts to RM250 million.

Group managing director Teh Lip Kim said there is no rush to add to its land bank at the moment as the group is focusing on selling its current inventories. “Although the inventory level is manageable as most of the projects are 95% to 97% sold, we want to clear the inventories before deciding on the next course of action,” she said at SDB’s 58th annual general meeting on Aug 27.

Group chairman Eddy Chieng Ing Huong said, “Despite the challenging property market, we will continue to be innovative considering we have a strong financial position.”

“Malaysia’s property sector is picking up at a slow rate due to the challenging market conditions, coupled with consumers’ cautious spending habits from the increasing cost of living and firmer bank policies,” he added.

Also present at the event was general manager Loong Ching Hong.

SDB has several land parcels measuring a total of 30,689 sq ft, but plans for their development have yet to be finalised.

Its latest project in Malaysia is UNA serviced apartment at Jalan Peel, Maluri, Kuala Lumpur — a 46-storey tower that will offer 316 serviced apartments and six retail units on the ground floor. The one to three-bedroom units will have built-ups of 807 to 1,356 sq ft, with selling prices starting at RM1 million. The partially furnished units will come with an audio intercom, kitchen cabinets, kitchen glass door, hob and hood, and connection points for air conditioners and water heaters.

The project, which is due to be completed by 4Q2020, occupies a 0.95-acre leasehold parcel and has a gross development value of RM368 million. Since its launch in November 2017, 50% of the units have been sold.

In Singapore, SDB has two ongoing projects — One Draycott near Scotts/Orchard Road and Jui Residences at Serangoon Road. “About 50% of the units at Jui Residences have been sold and we intend to sell 64 exclusive units at One Draycott to Hong Kong and China investors,’ said Teh.

The group is also looking to launch a development at Subang Jaya in 4Q2020, targeting millennials and retirees as well as young couples looking to buy their first home. The project is still in the planning stages.