Long-term view by S P Setia amid challenging times in Johor

JOHOR (Aug 1): The high-rise property market in Johor is going through challenging times at present, but S P Setia Bhd is taking the long-term view and is optimistic about the Johor Bahru property market.

“In terms of the property market, we have full confidence in Johor Bahru for the long term. And S P Setia is a long-term developer. We are prepared for the ups and downs [of the market],” said its president and chief executive officer Datuk CJ Khor at a press conference after the topping-out ceremony for Phase 1 of its Johor project, Setia Sky 88, yesterday.

The strategy, in the meantime, is to focus on its landed properties which have been doing well, while planning for other projects to ensure that they are ready when the market starts to improve.

“Sentiment in the market is very challenging,” said its deputy president and chief operating officer Datuk Wong Tuck Wai, who was also at the ceremony. “There are always people looking to buy properties. We think that next year, the market will come back. But we are also dependent on government agencies and those in power to give some assistance like making applying for loans easier, which will encourage the market more.”

Also at the topping-up ceremony was S P Setia chairman Tan Sri Wan Zahid Mohd Noordin and the chairman of Johor’s state executive council for housing and local government, Datuk Abdul Latif Bandi, who represented Johor Menteri Besar Datuk Mohamed Khaled Nordin who was not able to attend due to a prior engagement.

“With this topping-up ceremony, we are pleased to announce that Setia Sky 88 will be handed over to purchasers according to schedule next year,” Wan Zahid said.

Meanwhile, Abdul Latif was also on hand to hand over keys to some owners of the Rumah Mampu Milik Johor houses that have been built in S P Setia’s Setia Eco Gardens development. He also launched a further 352 units in Setia Eco Gardens and 490 units to be built in Setia Business Park 2.

Setia Sky 88 will be one of the tallest residential buildings in Iskandar Malaysia, Johor, with each of its three buildings reaching 55-storeys with a total of 838 units. The project is currently 70% taken up. It has a gross development value of RM800 million and sits on 4.5 acres (1.82ha) of freehold land. It is a BCA Green Mark-certified project and is well connected to highways, such as the EDL Highway, North South Highway and Coastal Highway.

The project was launched in two phases. Phase 1 saw the launch of Sora (Tower B) and Nube (Tower C) in 2012, and at present is 86% completed, while Phase 2, Altus (Tower A), was launched in 2014 and is currently 56% completed.

Sora and Nube each has 294 units with built-ups ranging from 517 to 1,389 sq ft, while Altus has 250 units with built-ups from 505 to 1,636 sq ft. The price range for Phase 1 units is from RM833,340 to RM2,348,340, while Phase 2 is from RM977,060 to RM3,573,080.

The entire project is slated for completion by 2018.

This article first appeared in The Edge Financial Daily, on Aug 1, 2016. Subscribe to The Edge Financial Daily here.