Sunway MCL targets ‘a few’ Singapore land parcels a year as development pipeline grows

PETALING JAYA (Sept 1): Sunway Bhd's Singapore property arm Sunway MCL is looking to secure "a few land parcels every year" as it expands its residential development pipeline in the city-state following Sunway's acquisition of MCL Land last year.

Sunway MCL CEO Lee Tong Voon told The Business Times in a Friday (Aug 28) report that the developer would continue looking for opportunities across Singapore, either on its own or through joint ventures.

The group is not targeting any particular market segment, he said, but will consider sites based on their location, demand and potential for long-term value.

"I wouldn't say that we are specifically trying to move upmarket. It's more about the opportunities that are available to us," Lee was quoted as saying.

Sunway completed its S$738.7 million (RM2.34 billion) acquisition of MCL Land from Hongkong Land in late 2025, giving the Malaysian group an established development platform and pipeline in Singapore.

Since then, Sunway MCL has stepped up its pursuit of development land, including through Singapore's government land sales programme.

In June, Sunway MCL and CSC Land Group submitted the top bid of S$750.6 million for a 99-year leasehold residential site at River Valley Green, equivalent to S$1,730 psf per plot ratio (psf ppr).

The site can potentially yield about 470 homes.

A week earlier, the two companies submitted a S$500.2 million bid, or S$1,720 psf ppr, for a residential site at Peck Hay Road. The site was subsequently awarded for S$542.4 million to CDL Constellation Pte Ltd and Garden Estates (Pte) Ltd.

In July, Sunway MCL was also part of a five-member consortium that secured the Bayshore Drive mixed-use government land sale site with a S$2.128 billion bid, equivalent to about S$1,323 psf ppr.

The consortium comprises Frasers Property, Frasers Centrepoint Trust, Sunway MCL, Sekisui House and Lum Chang.

The 5.75ha site can accommodate up to 1,280 homes and 22,500 sq m of commercial space.

Singapore pipeline expands

According to The Business Times, Sunway MCL had seven ongoing and three upcoming projects as at August 2026, comprising about 6,710 residential units with attributable gross development value of about S$6.5 billion.

Its portfolio includes Nava Grove, Tembusu Grand, Parc Esta and The Continuum.

Among its upcoming developments is Chuan Grove, a joint venture with Sing Holdings that will combine two adjacent government land sale parcels into a development of about 1,056 units.

Lee said Chuan Grove is targeted for launch in early 2027, subject to approvals.

"For a project of this size, we think there is an opportunity to create a unique residential community rather than just another condominium development," he said.

The acquisition of MCL Land has also begun contributing to Sunway's property development business.

For the first quarter of 2026, Sunway's property development segment recorded revenue of RM653.6 million, while profit before tax rose to RM102.2 million.

Sunway said the improvement was partly supported by contributions from the newly acquired MCL Group.

Lee said the integration had progressed smoothly, combining MCL Land's longstanding knowledge of the Singapore market with the wider Sunway group's capabilities and experience.

Residential remains main focus

Residential development will remain Sunway MCL's main focus in Singapore, although the developer is also open to opportunities in retail, hospitality and healthcare.

Lee said the group would also consider collective sales, strategic acquisitions and redevelopment sites as it seeks to expand its pipeline.

He expects Singapore's residential market to remain supported by the country's position as a global business and wealth management hub, while the limited release of land through the government land sales programme should keep supply measured.

However, buyers have become more selective and are paying greater attention to location, development quality and whether projects meet their needs, he said.

"For the CCR segment, we continue to see good demand, but developers also need to remain disciplined," Lee said.

"It's not just about having a project in a prime location; you have to get the product and pricing right."

Sunway is known in Malaysia for large integrated developments combining residential, retail, leisure, healthcare and other components, but Lee said such an approach would have to be adapted to Singapore's land constraints and planning environment.

"If the right opportunity comes along where we can bring residential, retail, lifestyle or other uses together in a meaningful way, we would certainly look at it," he said.

"But it has to make sense for the site and for Singapore. We don't want to force a model just for the sake of it."

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