Artist impression of the Sunway Wellesley Phase 1, which consists of 31 units of three-storey shop offices.
SUNWAY Bhd's property development division is on track to achieve its targeted sales of RM1.3bil this year.
The property development and construction group has done RM1bil in property sales to date, says managing director of property development division (Malaysia) Ho Hon Sang.
The major drivers of Sunway's property sales this year include new phases at Sunway South Quay in Bandar Sunway, and Sunway Velocity in Kuala Lumpur.
Ho: ‘Diversification means mitigated impact and warranted performance.’
Ho points out that the group's recent commercial property offerings Sunway Geo @ Sunway South Quay, Sunway Velocity's Phase 3C1 and Sunway Wellesley Phase 1 in Penang had recorded take-up rates of more than 80% during previews.
The gross development value (GDV) of these projects' phases is RM700mil.
“Besides the strategic locations, these developments are well-planned, with good facilities, infrastructure, security features and incorporate great concepts. They have great potential for excellent capital appreciation,” says Ho.
Ho says the recent preview of Sunway Geo's 31 units of retail shops and 220 units of flexi suites, priced at RM7mil and RM400,000 onwards per unit respectively, has received overwhelming response. “The shops recorded take-ups of more than 80%.”
The retail shops are sized at 4,975 sq ft onwards while the flexi suites are sized at 462 sq ft onwards. They have a combined GDV of RM400mil.
Sunway Geo will benefit from the proposed elevated Bus Rapid Transit-Sunway Line.
Sunway Geo is a 23.4-acre mixed development consisting of retail shops, flexi and office suites, serviced apartments and condominiums. It is located next to the award-winning Sunway Resort City, which was recently certified as Malaysia's first green township by the Green Building Index.
Sunway Resort City is home to 200,000 residents and 33,000 students. It welcomes 36 million visitors yearly.
Sunway Geo is an enhanced version of the group's successful retail concept at Sunway Giza and Sunway Nexis located in Dataran Sunway (Kota Damansara), which featured a covered central boulevard and vibrant alfresco food and beverage dining concept.
Ho says the success of Sunway Geo was due to its innovative retail concept, accessibility and connectivity.
It also enjoys a large catchment pool due to its proximity to Sunway Resort City with amenities such as Sunway University, Monash University, Sunway International School, Sunway Medical Centre, Sunway Pyramid, Sunway Lagoon and Sunway Resort Hotel and Spa.
“Access routes are available from Sunway South Quay to Sunway Resort City amenities. These are via free shuttle-bus service, pedestrian-friendly walkways and elevated canopy walk.”
Sunway Geo is also expected to benefit from the proposed elevated Bus Rapid Transit (BRT) Sunway Line that will run through the township and connect to Setia Jaya KTM Komuter station and an upcoming light rail transit (LRT) station at USJ, Subang Jaya.
Meanwhile, strong sales were also seen recently for Sunway Velocity's Phase 3C1, which consists of 276 designer offices and 12 retail shops priced from RM537,000 and RM3mil respectively.
The retail shops are sized from 2,244 to 4,268 sq ft while the office units are sized from 678 to 1,297 sq ft. They have a combined GDV of RM251mil.
Sunway Velocity is a freehold 23-acre integrated development that is located 3.8km from Kuala Lumpur City Centre. It will feature an integration of five elements retail, office, residence, boulevard and garden.
Sunway Velocity is also planned with a one-million-sq-ft lifestyle shopping mall that will be managed by the group. The development is bordering Jalan Peel, Jalan Cheras and Jalan Shelly, and is reachable via Jalan Tun Razak, Jalan Loke Yew and Jalan Pudu.
It will benefit from two upcoming MyRapid Transit (Cochrane and Maluri) and two existing LRT stations (Maluri and Chan Sow Lin).
Ho also says there was strong response to Sunway Wellesley Phase 1, which consists of 31 units of three-storey shop offices priced from RM972,000.
The 60-acre Sunway Wellesley is surrounded by the Jit Sin Independent High School, AEON Seberang Prai City shopping centre, KPJ Penang Specialist Hospital and Bukit Mertajam High School.
It enjoys accessibility to North-South Expressway, Butterworth-Kulim Expressway and the Penang Bridge and is located within half a kilometre from Bukit Mertajam town centre.
Sunway has undeveloped land bank of 2,780 acres, with a possible GDV of RM32bil. About 93% of the group's undeveloped land bank is in Malaysia (mainly in the Klang Valley, Ipoh and Johor), with a GDV of RM24.5bil. The balance is in Singapore (one acre with GDV of RM95mil), China (95 acres with GDV of RM5.4bil) and other countries in the Asia-Pacific region (103 acres with GDV of RM1.3bil).
The group's launch plans in the Klang Valley in the final quarter of this year include townhouses in Sunway Montana (phase two) at Desa Melawati in Kuala Lumpur, cluster homes in Sunway Alam Suria (phase 2C1) in Shah Alam and three-storey park residences in Sunway Eastwood (phase two) in Puchong.
In Penang, it plans to launch three-storey terrace homes in Sunway Cassia (phase two). Meanwhile, in Singapore, the group has been involved in residential developments with Hoi Hup Realty Pte Ltd since 2007.
Sunway's ongoing projects in Singapore are Vacanza @ East (high-rise development with a GDV of RM1.23 bil), The Miltonia Residences (low-rise development with a GDV of RM952.5mil), Arc @ Tampines (high-rise executive condominiums with a GDV of RM1.17bil), Lake Vista @ Yuan Ching (high-rise development with a GDV of RM915mil) and Sea Esta, Pasir Ris (condominiums with a GDV of RM897.5mil).
The projects have a take-up rate of 92% to 100%, except for Lake Vista @ Yuan Ching which has a take-up of 71%. They are expected to be completed from end-2013 till 2016.
In China, Sunway is presently involved in joint-venture property developments in Jiangyin City (in Jiangsu Province) and the Sino-Singapore Tianjin Eco City.
In Jiangyin City, the group, via a joint venture with Shanghai GuangHao Real Estate Development Co Ltd, is developing a 1,200-unit condominium project with a GDV of RM466mil. It is Sunway's maiden project in China and has achieved a take-up rate of 80%.
In the 7,500-acre Sino-Singapore Tianjin Eco City, the group is developing a 98-acre site which has a GDV of RM5.3bil over the next five to seven years. Sunway has plans for this project to be launched in 2013.
Ho is confident about Sunway continuing to enjoy strong property sales despite talk by industry researchers and analysts about a perceived slowdown in transactional activity within the luxury residential market, due to tougher lending guidelines imposed this year.
He points out that Sunway has a diversified portfolio of properties in different price categories as well as different geographies, catering to various target markets.
“Diversification means mitigated impact and warranted performance. We maintain that strategic properties, which have great value, will always be in demand.”
Ho says Sunway's properties come with well-planned facilities and infrastructure, comprehensive security features, and are strategically located in prime locations.
“These are properties that have excellent potential for capital appreciation and most of our customers, especially the repeat clientele, see the value of these properties.”
He says that in the near future, Sunway will launch products, especially landed units, priced below RM1.5mil. “As for the high-rise segment, we have products worth about RM350,000 and above.”
By The Star