Sunway Property targets RM2.2b sales for 2022 following record year in 2021

KUALA LUMPUR (Jan 18): Sunway Property Bhd is eyeing RM2.2 billion in sales and RM2.3 billion in launches for 2022, after seeing its highest ever sales of RM2.55 billion in 2021 despite the Covid-19 pandemic.

The record performance was attributed to its sales in Singapore, although Sunway Property managing director Sarena Cheah said the group saw commendable sales across all segments.

She also highlighted the group's RM4 billion in unbilled sales, almost twice the RM2.2 billion it recorded in the preceding year, providing earnings visibility for the next two to three years.

"The strong sales for the year are showing inherent demand, which can be seen through the increase in our unbilled sales," said Cheah at a briefing with the media.

On its planned launches for the year, the group said almost 70% of its launches will be in Malaysia, while the rest will be in Singapore and China.

About 70% of its new launches will be in Malaysia, while the remaining portion will be overseas, in Singapore and China.

Cheah said the developer will continue to invest in its existing townships while also launching new developments in high-growth areas, priced from RM310,000 onwards.

These include the first tower of serviced apartments in Jernih Residence in Kajang (RM281 million gross development value [GDV]), condominium and superlink units in Sunway Alishan in Kuala Lumpur (RM261 million GDV), and the first tower of serviced apartments in Bukit Jalil (RM275 million GDV).

In Penang, it will be launching townhouses in Sunway Wellesley (RM120 million GDV) and condominium units in Sunway Dora (RM71 million GDV) as well as townhouses in Perak at Sunway City Ipoh (RM75 million GDV).

In Johor, the developer will be launching landed link homes in Sunway City Iskandar Puteri (RM213 million GDV), the developer will also launch semi-detached homes and bungalows in Sunway Lenang Heights (RM93 million GDV).

It will also be expanding its Sunway Medical Centre in the Klang Valley, and proceeding with the construction of Sunway Medical Centre Seberang Jaya. Construction of Sunway Medical Centre Kota Bharu will also commence during the year.

Sunway Property is planning to establish eight integrated wellness hubs across Malaysia's highest growth regions where it has townships and developments, namely the Klang Valley (Sunway City Kuala Lumpur, Sunway Velocity in Kuala Lumpur, and Sunway Damansara); Penang (Sunway Seberang Jaya and Sunway Valley City); Ipoh (Sunway City Ipoh); and Johor (Sunway City Iskandar Puteri), as well as the latest addition, Kota Bharu.

Cheah said the hubs will be anchored by Sunway Medical Centre with Singapore's sovereign wealth fund GIC Pte Ltd as an investment and strategic partner, adding that the group will invest RM2 billion in capex over the next four to five years for the medical centres.

"Holistic wellness — mental, physical, emotional, spiritual, social and occupational — is of primary importance globally now. An integrated wellness hub will allow our wider community to pursue a wellness-centred lifestyle, and upgrade their living experience," said Cheah.

For its international markets, the property developer will launch private condominiums at Flynn Park in Singapore (RM698 million GDV), and Sunway Gardens in Tianjin, China (RM276 million GDV).

The group currently has landbank totalling 3,334 acres, with a potential GDV of RM4 billion, spread across four developments.

Looking ahead, Cheah said the group is cautiously optimistic as while there is demand, there could be events outside of the developer's power, given the situation with the pandemic.

"We have faced two years of uncertainties, so we are definitely better prepared. We also do see a pickup in economic activity and demand across all our businesses. There are opportunities," she said.

While admitting that sales may be a bit slower at the start of 2022, Cheah said that the group is confident it will pick up, based on the strong bookings it has seen.

Edited by Lam Jian Wyn

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