KUALA LUMPUR (Aug 28): Unfazed by worries of supply overhang in the property market, UEM Sunrise Bhd (UEMS) plans to nearly double the size of its new launches next year.
It is targeting to launch projects worth a total of RM2.02 billion in the Klang Valley and Johor in 2020, exceeding the RM1.2 billion target set for 2019.
The property developer's managing director and chief executive officer Anwar Syahrin Abdul Ajib said there will be fewer property projects launched in the first half of next year, but this will pick up in the second half, which will see the bulk of its offerings or RM1.57 billion worth of properties launched.
This is because the first half is traditionally a quiet period.
The launches slated for next year include new phases for Serene Heights in Bangi, Equine Land in Seri Kembangan, as well as Aspira ParkHomes, Aspira LakeHomes and Estuari Gardens and Senadi Hills in Johor.
"Current conditions are tough with the oversupply in the market. There are too many developers in town and everyone is pressured to deliver, but we are focusing on our own areas," he told a media briefing to announce the group's financial results for the second quarter of 2019 today.
"While the conditions are challenging, we are still looking to launch new projects next year. We launch products that the market demands and we have the products that people want," Anwar Syahrin said.
Anwar Syahrin explained that UEM Sunrise's projects priced within the RM500,000 to RM1 million range is still selling well, but high-end products priced above RM1 million, however, are seeing relatively slower sales such as the Estuari Gardens project in Iskandar Puteri.
Earlier, the group shared a teaser for its upcoming project in Kepong Metropolitan, which will be launched in the fourth quarter of this year.
Dubbed Kiara Bay, the first phase of the development comprises two towers of 870 units with estimated gross development value (GDV) of RM656 million.
The development will comprise commercial and recreational components, with a total GDV of RM15 billion over 18 years, where the group is looking to emulate the success it had with Mont Kiara.
"The buyers that had missed out on Mont Kiara the first time around will be eyeing this project," said Anwar Syahrin.
He noted that the group is on track to meet this year's GDV target of RM1.2 billion, noting that UEM Sunrise has launched RM249 million worth of projects to date.
The group is also on course to meet its sales target of RM1.2 billion for the year, having secured RM532 million in sales to date.
About 52% of the RM532 million sales were contributed by projects in the central region, namely Symphony Hills in Cyberjaya, Residensi Astrea in Mont Kiara and Serene Heights, while 44% of the sales were contributed by the Southern region, largely from Aspira ParkHomes, [email protected] Harbour and Denai Nusantara.
UEM Sunrise shares closed down one sen or 1.49% at 66 sen today, with 1.09 million shares done, bringing a market capitalisation of RM2.99 billion.