Sunway Property sets RM2b sales target for 2020, focus on Singapore

SUBANG JAYA (Jan 7): Sunway Bhd’s property division, Sunway Property has set a sales target of RM2 billion in 2020. It has recorded RM1.55 billion in sales in 2019 surpassing the year's target of RM1.3 billion. Unbilled sales stood at RM2.8 billion to date.

Speaking at a media briefing today, Sunway Bhd property division managing director Sarena Cheah said Sunway Property will be launching properties worth almost RM3.5 billion in gross development value (GDV) this year. Of that amount, 70% (RM2.4 billion) will be properties in Singapore while RM1 billion will be projects in Malaysia.

“We target a sales number of RM2 billion or more depending on how the market is doing. We are a bit more conservative for the Malaysian side, depending on how it goes," said Cheah.

“Both local and international properties are expected to contribute about 50:50 to the sales target for the year. But there is a potential for the international segment (especially Singapore) to contribute slightly more given the stronger currency,” she added.

In Singapore, Sunway Property will be launching three residential properties worth RM2.4 billion - Parc Canberra, Ki Residence and Park Avenue Residences. It will also be making headways into China, UK and Australia as well.

In terms of land banking activities, Cheah said Sunway Property aims to be “more aggressive” in acquisitions this year both in Malaysia and overseas after acquiring about 33 acres of land last year worth slightly over RM4 billion.

Here’s what's in store for the year:

“A majority of launches in Malaysia this year would be priced from RM600,000 - RM800,000. We believe (the pricing) would be a sweet spot for the majority of the population as we have seen encouraging take-ups from our recent launches of around the price range,” explained Cheah.

For the Klang Valley, several launches are planned for 2020 - worth some RM691 million. These include Sunway Avila Retail (retail shops), serviced apartments at Sunway Velocity TWO Tower C and Sunway Belfield Tower A.

Besides that, RM573 million in investment properties consisting of an office tower and the expansion of a student accommodation are currently under construction at Sunway City Kuala Lumpur.

Meanwhile in Penang, the developer will launch its first commercial offering in the state, the 25-acre Sunway Valley City. The development has a GDV of RM2.4 billion and will be located in Paya Terubong, Ayer Itam. Currently, Sunway Medical Centre Seberang Jaya is being built.

Down south in Johor, the developer will be launching Sunway Maple townhouses (GDV: RM100 million) while the 288-room hotel Sunway Big Box Hotel is set to be completed this year.