SHAH ALAM: Property developer SP Setia Bhd plans to launch RM5.5 billion worth of projects both local and overseas by the second half of the year.
By the second quarter of the year, the company will also be launching its Penang debut project, Setia Fontaines, as well as two stand-alone high rise residential units in Singapore and Australia.
President and chief executive officer Datuk CJ Khor said
the project in Australia is the continuation of the Group’s UNO Melbourne project - a freehold mixed-use development comprising a residential cum hotel tower - which is the fifth in the country.
"Looking on the projects that we planned to launch this year, we are on track to meet our target sales of RM5 billion this year,” he told reporters after SP Setia annual general meeting here today.
SP Setia had secured sales of RM1.11 billion in first quarter 2018, with local projects contributing RM635.6 million or 58 per cent of the total sales, while the remaining 42 per cent derived from international projects contributed RM469.1 million.
On landbank, Khor said SP Setia owns 9,586 acres of land with an estimated gross development value of RM139 billion, which is going to keep the company busy in the next 10 to 15 years.
Total unbilled sales to date stands at RM7.95 billion.
Meanwhile, on the abolishment of goods and services tax (GST), Khor said it is still too early to quantify to significantly lowered down cost of building materials.
Besides that, he said the company will also have to weigh in the possibility of the re-introduction of sales and services tax (SST).
“It is still too early to tell. We have to weigh the SST too, and we cannot tell if it is going to affect the cost of building materials. We will have more visibility on how it is going to be once the government announced more detailed policy for this,” he said.
However, he said the Group expects sentiments among potential homebuyers to improve as they will have more purchasing power to buy big ticket items such as property.