Sunway targets RM1.6b property launches in 2016

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PETALING JAYA (Feb 22): Sunway Bhd said its property division Sunway Property is targeting to launch RM1.6 billion gross development value (GDV) worth of properties this year, with launches spread across the Klang Valley, Johor, Ipoh and Penang.

At a press briefing today, Sunway managing director Sarena Cheah said that the group aims to secure RM1.4 billion in property sales in 2016, following the group's achievement of RM1.2 billion sales in 2014. Its unbilled sales stood at RM2.3 billion as at end-2015.

The group currently has land bank of 3,304 acres, with potential GDV of RM47.7 billion over 15 years.

Despite the challenging environment in 2015, Cheah said the take-up rate of its recent launches over the past four months has seen good take-up rate of 80%. These launches include new units in Sunway Gandaria, Bangi; Sunway Velocity, Cheras; Serene Villas, Ipoh; and Emerald Boulevard, Medini, Iskandar.

"We are very encouraged by the healthy response despite the challenging environment. Having strong fundamentals is key in a challenging market and this will allow us the flexibility to adapt our launch strategies to match market changes," she said.

She said approximately 70% of the launches for this year will comprise properties in the Klang Valley, worth RM1 billion in GDV.

Its launches for the central region include 420 units of condominium in Sunway Geo Residences 3 (GDV RM400 million), a block of office suites at Sunway Velocity (GDV RM200 million), 288 condominium units at Brook Residences, Mont Kiara (GDV RM200 million), and 259 units of serviced apartments at Sunway Gandaria, Bangi (GDV RM200 million).

"The central region is supported by the various infrastructure projects, including the MRT (Mass Rapid Transit) project. We will benefit from this as some of Sunway's projects are located in vicinity of the infrastructure. We will continue to look for land bank in the central region," Cheah said.

For the southern region, Sunway has launches of RM400 million in the pipeline for the year in Sunway Iskandar, Johor, comprising mixed developments.

Meanwhile, it aims to launch a total of RM200 million in projects in the northern region. In Ipoh, the group will be launching the Lost World Residences, comprising 262 units of serviced apartments with a total GDV of RM100 million.

In Penang, Sunway is launching 48 units of two-storey semi-detached homes in Sunway Cassia, Batu Maung Phase 3 (GDV RM100 million) in April.