Sime Darby Property on track to achieve RM2.4b sales target

PETALING JAYA (May 27): Sime Darby Property (SDP) is on track to achieve its RM2.4 billion sales target for FY2021, as the group has achieved total bookings of RM0.8 billion to date, said its  group managing director Datuk Azmir Merican (pictured).

According to him, the sales bookings came from SDP’s new launches in Selangor this year - 122 units of Serenia Ariya double-storey terraced homes at the Serenia City township in Sepang and 64 units of Ayana double-storey terraced homes at the Nilai Impian township.

Azmir said the Covid-19 pandemic is no doubt making this year an even more challenging one to the property market but it is crucial to have an agile launch plan with the right products being launched at the right time.

“As we can see from the [data from] National Property Information Centre, the overhang in residential units decreased 10% y-o-y to 8,026 units in 3Q2020 for the Greater KL area while Negeri Sembilan recorded a decrease of 3.8% y-o-y to 1,008 units in 2020. 

However, I think at the end of the day, it really depends on the Covid-19 situation. Purchasing decisions such as these, it is about knowing you can afford it, you know that you feel good about the economy, you know you will have a job and you know you will do well. So, people make these decisions based on economic fundamentals,” shared Azmir during the virtual media briefing today.

Key launches this year under the industrial and logistics segment include new phases in Elmina Business Park comprising 303 industrial units and 78 commercial units with a GDV of RM1.26 billion. 

SDP will also expand product offerings to include its first multi-tenant ready built warehouse with a GDV of RM530 million in Bandar Bukit Raja Industrial Gateway.

Meanwhile, Azmir added that plans are on the way to launch its most exciting project for this year, the luxury high-rise Jendela Residences. 

This development is located in the flagship KLGCC Resort township and carries a GDV of approximately RM900 million. With a total of 520 units, this will be the first of the group’s residential high-rise projects to be launched this year, which will diversify Sime Darby Property’s residential product mix. Prices for the unit are starting from RM1,200 psf.

He added that some RM2 billion to RM3 billion worth of GDV projects will be launched from now until the end of the year, but if the group finds that the timing is not suitable, the new launch will be deferred.

“We have to launch projects which make sense to the market. If the project is not right, the pricing is off, we are not going to get a positive response,” said Azmir, adding that the team has researched closely to ensure the new launch will be unveiled at the right time. 

Commenting on the impact of rising raw material prices and cost management, Azmir said the company monitors the construction cost closely to decide whether to pass the additional cost to the buyers.

“We can’t say anything now, we can see 1Q2021, there is minimal impact but in the future, we still need to monitor closely on the pricing. As to whether the cost will be passed on to the consumers,

There is always a possibility but in light of the current situation and the market, we will try to absorb as much of this crisis as possible. We are looking at how we can solve this such as looking for alternative materials. So, as much as possible we will try to absorb the cost,” said Azmir. 

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