Comprising two towers with 60 and 62 floors linked by a skybridge, Sapphire by the Gardens in Melbourne, Australia, offers 345 units of luxury apartments and its houses the five-star Shangri-La Hotel.
SP SETIA is set to realise its total sales target of RM4bil by Dec 31, 2022 (FY2022), thanks to strong contribution from high-impact international projects and stronger local sales.
The practical completion of the Group’s international ventures in the United Kingdom, Singapore and Australia will see the bulk of cash flow proceeds and profits returned in FY2023, making the next couple of years the main beneficiary years for SP Setia with regard to international earnings.
These projects are the Daintree Residence in Singapore, UNO Melbourne and Sapphire by the Gardens in Australia, and Battersea Power Station in London.
Each of these projects is located in premium central business district locations, and delivers thoughtfully designed spaces with coveted amenities while embodying the “20-minute neighbourhood” – a living local concept whereby most daily needs are met within 20 minutes from home. It is a concept that is particularly well-suited to today’s quickly changing environments and consumer sentiment.
Rising demand
“Demand is evergreen in established locations like London, Melbourne and Singapore where house prices have historically trended upwards,” says SP Setia president and chief executive officer Datuk Choong Kai Wai.
“House price growth in prime central London, for example, is steadily rising as the luxury property market recovers.
SP Setia’s EcoXuan township in Lai Theu, Vietnam, is a balanced mix of serviced apartments, a commercial centre and landed homes.
“In Melbourne, the demand for quality apartments in good CBD locations are starting to pick up again with international students returning and resumption of full migration.
“In fact the rental market has rebounded strongly as demand outpaces dwindling supply. A strong upward momentum is clear in these markets as offices reopen and their economies return to pre-pandemic health.”
Local momentum
SP Setia’s property sales have not just been gaining traction overseas, but also within Malaysia.
Local projects make up RM1.38bil or 83% of the RM1.67bil of total secured sales in the first half of FY2022.
‘Based on our ongoing sales momentum, we are on track to achieve our set sales target of RM4bil by the end of the year,’ says Choong.
“Quietly, local momentum is growing. We saw improved sales and the clearance of our completed inventory. With that, we accelerated development, especially for landed residentials in our established townships.
“Based on our ongoing sales momentum, we are on track to achieve our set sales target of RM4bil by the end of the year,” says Choong.
Range of offerings
A post-pandemic Malaysia brings positive tides for the retail sector and SP Setia is poised to capitalise on its recovery with its retail portfolio i.e. Setia City Mall.
Retail developments generate recurring income for the Group, making them a vital segment of any successful real estate organisation.
Further strengthening its range of offerings, SP Setia is venturing into the lucrative industrial park space.
Daintree Residence is a five-storey, 327 apartments condominium in Jalan Toh Tuck Road, Bukit Timah in Singapore.
The Group has partnered with a prominent industrial player and signed a formal agreement to turn 161 hectares of freehold land in Setia Alaman, Kuala Lumpur, into a mixture of industrial and commercial assets with a potential gross development value (GDV) of RM3bil. This project is set to launch by mid-2023.
“Given its strategic location near Port Klang, we are expecting strong response from both local and international investors.
“As it is, we are already fielding enquiries about this project,” says Choong.
Leading developer
Since its incorporation in 1974, SP Setia has been a household name in the property development industry.
The Group is recognised as one of Malaysia’s leading listed real estate players with a portfolio that encompasses townships, eco-sanctuaries, luxury enclaves, high-rise residences, commercial and retail developments.
SP Setia is the only Malaysian developer to have received 15 FIABCI World Gold Prix d’Excellence Awards by International Real Estate Federation (FIABCI) of which the 14th and 15th wins were in 2022, and 14 FIABCI Malaysia Property Awards to date.
An abandoned power station repurposed into a transit-oriented integrated development, the Battersea Power Station in London officially opens tomorrow.
In 2020, SP Setia was ranked No.1 in The Edge Malaysia Top Property Developer Awards for a record-breaking 13th time – the only developer to have achieved this feat since the inception of the awards.
The Group is well-established in Malaysia’s three key economic centres – Klang Valley, Johor Baru and Penang – and has a project in Sabah.
Its international reach now includes six countries – Vietnam, Australia, Singapore, China, the United Kingdom, and Japan.
