City & Coountry: S P Setia’s maiden luxury high-rise

Setia Sky Residences, located near the intersection of Jalan Tun Razak and Jalan Raja Muda Abdul Aziz, is S P Setia Bhd’s maiden luxury high-rise condo development. It comprises four 40-storey blocks on a six-acre freehold commercial plot between Wisma Selborn and Yayasan Selangor. Only the first two blocks are open for sale; the first tower is already 90% sold, thanks mainly to its innovative 5/95 home loan package. The second block opened for sale last weekend.

To gauge market interest for Setia Sky Residences, S P Setia embarked on a registration exercise for the first tower last December. Satisfied with the “overwhelming” response despite the gloomy state of the economy, the developer then organised private sale previews for its registrants — repeat buyers and privileged guests — in January.

Within six months, the first tower has generated sales of some RM186 million. “With the 5/95 home loan package, our homes have become more affordable as buyers only had to fork out a relatively small sum for the downpayment of the units,” says Norhayati Subali, divisional general manager at Exceljade Sdn Bhd, the developer of Setia Sky Residences, in which S P Setia holds a 70% stake. The remaining stake is owned by Appronic Sdn Bhd.

Under the 5/95 scheme, applicable for all residential project purchases at 11 S P Setia developments throughout the country, the buyer makes a 5% downpayment with no other cash outflow until completion. The developer will bear all legal fees, the stamp duty on SPA, loan agreement and memorandum of transfer. It will also service the interest during the construction period.

So, for an average 1,300 sq ft 3+1-bedroom unit at Setia Sky Residences which costs RM800,000, the buyer only pays RM40,000 until the project is completed in three years’ time. Norhayati says the buyer will enjoy a considerable amount of savings, including the fees for the transfer of the title to their name. “Throughout the construction period for the project, buyers will be able to enjoy savings of up to RM80,000 over three years. If they want to lease out the unit, the potential monthly rental is about RM5,000 while the capital appreciation will be at least 30%,” she tells City & Country.

With the 5/95 home loan package expiring on July 19, the developer has strategically set July 11 as the official launch of the first two blocks of Setia Sky Residences. It is anticipating some “last minute” purchases  as buyers would want to take advantage of the 5/95 scheme before it ends.

S P Setia president and CEO Tan Sri Liew Kee Sin said in a recent report that the developer would not be extending the 5/95 home loan package this time. In April, it extended the three-month programme by another three months due to favourable response from buyers.

The group’s sales had hit RM1.04 billion as at June 30, and with only four months left for its financial year ending Oct 31, it would seem that it is well on track to achieve its FY2009 sales target of RM1.1 billion.
Besides the 5/95 scheme, the developer is also banking on the smaller-sized units at Setia Sky Residences’ first two towers to boost sales in a sluggish property market.

“To keep the capital outlay low in view of the current economic situation, we opted for smaller-sized units in the first phase. The most expensive unit here costs only RM1.5 million,” says Norhayati. However, she adds that the developer may offer larger-sized units, including penthouses, in the remaining two blocks under the second phase, which may be launched in a year’s time.

Setia Sky Residences
For the first two towers that are open for sale, each block comprises 211 units with built-ups of 1,055 to 1,701 sq ft. Privacy is assured as there are only six units per floor and most come with a private lift lobby, stresses the developer. There are six designs to choose from and each unit is priced from RM680 to RM930 psf. Each condo comes equipped with air-conditioning and water heating units, as well as two parking bays. There are a total of six studio units in each tower.

Only a handful of units in the first tower are still on the market, with prices starting from RM700,000. The maintenance fee is 45 sen psf, inclusive of sinking fund charges.

This modern condo development, with a gross development value of RM900 million, is expected to be completed in five years. Designed in a curved orientation, about 70% of the units face KLCC, which is about 1.5km away. The remaining units enjoy views of the pool or the Titiwangsa area.

A separate 5-storey annexe houses the carpark and on top is a 40,000 sq ft Sky Deck, which has recreational facilities like a 50m lap pool, barbecue pits, children’s playground and a private spa area. The Sky Club floors on Level 34 of both the first two towers will be linked by a sky bridge. The Sky Club overlooks the KLCC and the developer plans to have it fully furnished and fitted with more facilities such as an infinity pool, gymnasium, tea pavilions, yoga room and four Sky Villas. The Sky Villas, or function rooms, can accommodate up to 40 people. There will also be a 4,000 sq ft Sky Port, where space can be leased for retail use.

“We are selling a lifestyle here at Setia Sky Residences, thanks to our generous facilities and amenities. For example, the Sky Deck as well as the 20,000 sq ft Sky Club. If we forgo the Sky Club, we can sell the space for about RM20 million,” says Norhayati. The developer will also be offering shuttle services for residents to KLCC and Pavilion KL shopping centre.

On the building’s curved design, Norhayati says, “We didn’t want a boxed up building, which is pretty conventional for high-rise condominiums. Not only is the curved design sexy, this way, most of the units can enjoy views of the KLCC. We are turning our location disadvantage into an advantage.” She also adds that the development enjoy “better” views of the Petronas Twin Towers due to its location.



This article appeared in City & Country, the property pullout of The Edge Malaysia, Issue 763, July 13-19, 2009