Image source: spsetia.com
S P Setia has secured RM3.07 billion worth of sales in the first 9 months of 2019, mainly with their ongoing projects in Malaysia. Their international ongoing projects, namely UNO in Melbourne, Australia and Battersea Power Station as well as Sapphire by the Gardens in London, United Kingdom recorded no profit contribution as they were recognised on completion method.
Local projects contributed RM2.6 billion of the sales, marking an 85% total contribution. The remaining RM467 million was contributed by international projects, marking the remaining 15% of total sales.
Most of the sales of local projects came from the Central region, at a total of RM1.75 billion. This is followed by a combined total of RM854 million sales from the northern and southern region. As for the international projects that contributed a total of RM435 million, the sales came from Daintree Residence in Singapore, UNO Melbourne in Australia, and Eco Xuan in Vietnam.
The Group’s strategic project launches have totalled a Gross Development Value (GDV) of RM2.71 billion, largely comprising landed properties which registered commendable performance. This includes the 2-storey linked houses at Setia Safiro in Cyberjaya, as well as the 2-storey semi-detached houses at Setia Mayuri in Semenyih, both of which registered 100% take up on the weekend of their launch.
In the northern region of mainland Penang, the highly anticipated affordable single-storey terrace houses priced from RM330,000 onwards received encouraging response. Buyers were attracted to the unique development concepts, prime location and the amenities within this new township in Seberang Perai.
Said Dato’ Khor Chap Jen, President & CEO of S P Setia Berhad, “Amid the challenging landscape of a subdued property market, the strategy is to launch more mid-range landed properties in the Group’s flagship townships where the underlying demands by owner-occupiers are still favourable.”
As S P Setia moves toward the final quarter of 2019, they plan to launch another total of RM2.17 billion worth of GDV, focussed on launches of landed property within established townships in the central and southern region.
The final quarter’s launches will bring the total launch for FY2019 to RM4.88 billion. Notable launches are planned in existing townships of Setia Alam, Setia Eco Hill, Setia Eco Templer, Setia Eco Park, Bandar Kinrara, Alam Impian, Setia Eco Garden and Setia Tropika.
Additionally, the Group will also be launching 2-storey linked houses at Setia Warisan Tropika, the Group’s latest township located in Bandar Baru Salak Tinggi, in mid-November of 2019.
With encouraging response to the Home Ownership Campaign (HOC) 2019 and the versatility of the planned launches, the Group is positive that they will achieve the sales target of RM4.55 billion.
They are currently anchored by 46 ongoing projects, 8,984 acres of effective land banks remaining, and a potential GDV of RM143.82 billion. Prospects are positive with a total unbilled sales of RM10.52 billion as at 30 September 2019.
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(20th November 2019)