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KUALA LUMPUR: Selangor Dredging Bhd (SDB) has in its pipeline property launches worth almost RM1 billion in gross development value (GDV) in Malaysia and Singapore by the end of 2012. The group expects contribution from Singapore to be at par with Malaysia’s in two years, said group managing director Teh Lip Kim.
SDB will launch the Hijauan project in Singapore as early as next month. It is a low-rise, six-storey luxury apartment in District 9, which is a prime location on the island republic, just off the famous Orchard Road. Hijauan will have a GDV of S$95 million or RM235 million.
“Over the last 12 months, we have launched two projects in Malaysia and two in Singapore. And in the next one year, until the end of 2012, we will be launching RM1 billion worth of projects both in Malaysia and Singapore,” said Teh.
Since SDB switched to property development in 2004, it has launched 10 projects — seven in Malaysia and three in Singapore — with a combined GDV of RM2.38 billion. Its first project in Singapore was the Jia at Wilkie Road, comprising 22 units of low-rise condominiums. The development worth S$55 million in GDV was completed in December 2010 with full take-up rates.
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| Teh says Selangor Dredging will launch Hijauan in Singapore as early as next month. |
“(Following Hijauan) the next project will be launched in November in Batu Feringghi (RM200 million GDV). It is called By the Sea. So in the next six months we would have launched RM500 million worth of projects from the RM1 billion that we would launch this coming year. I would say we have in the pipeline RM1 billion until next year,” said Teh. The project in Batu Feringghi is intended for beachfront suites.
Teh said generally the property market in Malaysia will remain good and stable despite the equity market volatility. She is of the opinion that property prices in Malaysia are lower than in other markets in the region.
“As a developer, we need to be mindful of the products and concept that we come out with, and around that location what are others offering and how we can differentiate ourselves. If we offer the same thing, it will be very difficult to be taken up, unless there is overwhelming demand for it. So we really need to be very discerning and discreet as a developer,” she said.
For FY11 ended March 31, SDB saw a substantial increase in its net profit to RM30.17 million compared with RM17.96 million the year before. The turnover for the year was at RM346 million compared with RM234.4 million previously.
During the three-month period ended June 30, SDB recorded a higher net profit of RM10.1 million compared with RM5.7 million in the corresponding period last year on a higher revenue of RM98.9 million from RM62.5 million.
The better performance was due to higher sales achieved from property developments such as 20trees West in Taman Melawati, Selangor, Five Stones in SS2 Petaling Jaya and Gilstead Two in Singapore.
