By Joseph Wong
PETALING JAYA: Sunway Property’s Singapore launches are crucial components in the developer’s goal of achieving its RM2bil sales target for 2020 while other overseas ventures will drive the developer forward.
Buoyed by its success in surpassing 2019’s sales targets of RM1.3bil to reach RM1.55bil in sales, Sunway Property has up its game by increasing its new target by RM500mil.
Sunway Bhd property division managing director Sarena Cheah said close to RM3.5bil worth of properties in gross development value (GDV) will be launched.
Of the total, RM2.4bil or 70% of next year’s property launches will be in Singapore with the remaining RM1bil in Malaysia.
This is in line with its plans for geographical diversification, said Cheah, adding that while Sunway has already expanded overseas, it has not fully tapped into this segment of their extensive portfolio.
“Sunway’s recurring income from our portfolio of invested properties currently strengthens our financial sustainability. Geographical diversification will further deepen sustainability for us,” she said.
“In line with our Master Community Developer brand promise, powered by our build-own-operate model, we will continue to invest in our integrated townships and developments to ensure growth for our communities with about RM 1.1 billion of investment properties currently being built”.
As of December 2019, Sunway Property has 3,362 acres in landbank with a GDV of RM59bil and a total development period of up to 15 years. Currently, strong unbilled sales stand at RM2.8bil which provides for earnings visibility.
Sunway’s first Singapore product is expected to be launched in February with its sales gallery to be opened just ahead of the Chinese New Year, said Sunway Property deputy managing director Tan Wee Bee.
Targeted for Singaporeans, the estimated price is believed to be in the region of S$1,000 per sq ft. Sunway will also make headway into China, UK and Australia, he said.
Sunway Property has been in Singapore since 2007, and delivered RM14.98bil worth of properties, so its expansion into the island nation makes logical sense.
Upcoming launches in Singapore include the executive suites in Parc Canberra, Canberra Link which has a GDV of RM560mil, Ki Residence in Clementi (RM1bil) and Park Avenue Residences in Tampines (RM880mil).
In China, where the developer has ventured into since 2010, it acquired another 6.85 acres of land in Sino-Singapore Tianjin Eco-City in 2019.
Last year, Sunway Property established a private trust in Singapore with an initial £38mil (RM203.8mil) of assets under management that focuses on purpose-built student accommodations in the UK.
It has since acquired three completed student accommodation blocks in Bristol and Sheffield. The property developer is also pursuing opportunities in student accommodation and developments in Australia.
Launches planned for Malaysia include Sunway Avila Retail which has a GDV of RM31mil, Sunway Velocity 2 Tower C (RM300mil), Sunway Belfield Tower A (RM360mil).
In Penang, the developer will kick-off its much-awaited RM2.4bil integrated development Sunway Valley City which is expected to replicate its successful Sunway Velocity development in Klang Valley.
The 25- acre development is located in Paya Terubong, Ayer Itam, one of the matured neighbourhoods in Penang.
In Johor, the developer will be launching Sunway Maple which has a GDV of RM100mil in Sunway Iskandar, while the RM167mil 288-room Sunway Big Box Hotel in Sunway Iskandar will be completed this year.
Cheah said that delivering lifelong value for purchasers continue to be Sunway Property’s key focus for the Malaysian market.
“100% of our launches this year will be within integrated developments or are transit-linked, in-line with the continued resilient demand that we are seeing from purchasers for properties which are connected and offers great convenience. Our new land banking efforts will also be in tandem,” Cheah said.
“We will continue to deliver lifelong value to homebuyers by developing quality liveable urban homes which are connected, and strategically-located, and price the homes within the range of RM600,000 to RM800,000.
“Our commercial launches which constitute 30% of our total launches this year will be within integrated developments with an immediate catchment in populous areas to ensure the success of our business community,” she added.
“With this, homebuyers can be assured of lifelong value, and attain ideal urban lifestyles where they can live, learn, work, stay and play in safe and secure havens while being future-proofed with the inherent potential capital appreciation of the properties,” said Cheah.
Last year, purchasers had snapped up 80% of Sunway Property’s launches which were transit-linked or integrated, constituting 90% of its launches.
Sunway Property also unveiled its campaign for the year, “Yours, 2020,” putting its purchasers at the front and centre of its operations.
Cheah said that purchasers could look forward to getting their dream home, at the right price, at strategic locations, coupled with the right financing support from the property developer this year.
“This year will be all about making it easy for those who are looking to purchase a home to start a new decade with their very own Sunway homes and be part of our growing communities,” she added.
Besides enhanced customer engagement and experience, improved service and an even more dynamic customer service portal, purchasers this year can look forward to fully-customised home packages that centres on well-being with personalised financing options, she said.