Modern living: A file photo of people looking at a model of an S P Setia development. The developer is incorporating more green features in its projects.
PETALING JAYA: The incorporation of sustainable homes and smart features by S P Setia Bhd in its upcoming projects is seen as a positive development, and it is expected to give their properties a competitive edge.
MIDF Research believes that the green and sustainable features, which the developer refers to as iHome, will ultimately appeal to property buyers.
After visiting S P Setia’s iHome in Kajang, the research outfit left with a positive impression of the sustainable home and smart features in S P Setia’s upcoming projects.
In a report, MIDF Research pointed out that the most of the features in iHome are focused on energy savings, including the smart home system, green switch, and solar photovoltaics (PV).
“Smart home systems and green switches help reduce energy consumption as all appliances will be able to switch off with one touch,” the brokerage said.
Additionally, Setia iHome buyers with installed solar panels can monitor their electricity savings through a mobile app.
“The rainwater harvesting system helps homeowners leverage on renewable energy resources,” MIDF Research said, adding that the rainwater harvesting system is connected to outdoor taps.
Furthermore, the research firm said S P Setia offers an innovative feature for contactless food deliveries and parcel services, catering to the increasing trend in food and parcel deliveries.
MIDF Research said the features of iHome will be introduced in future landed residential projects, where the cost of these iHome packages will be included in the property’s selling price.
Earlier this week, S P Setia announced its acquisition of a freehold land parcel measuring 14,790 square feet for a cash payment of A$73.3mil in Sydney.
This marks the company’s first venture into the Sydney property market.
S P Setia intends to undertake the development of a residential project, alongside secondary commercial and retail usage, with a gross development value (GDV) of A$36mil.
MIDF Research pointed out that this translates into a land cost-to-GDV ratio of 31%. The research house estimated S P Setia’s net gearing to rise marginally to 0.62 times from 0.6 times in June 2023.
“Nevertheless, we expect net gearing to be manageable as S P Setia is actively monetising its non-strategic landbank to lower net gearing,” it said.
MIDF Research, which made no changes to its earnings forecasts, maintained a “buy” call on the property developer.
Nonetheless, the research house has increased the target price on the stock to RM1.04 per share, up from 92 sen per share.
This adjustment is attributed to the innovative and smart features of iHome, which are expected to offer a competitive advantage to S P Setia.
