By THE STAR
KUALA LUMPUR: Sunrise Bhd, the market leader in the affluent Mont’Kiara condominium enclave, has lined up another four to five new project launches these two to three years to propel its earnings growth.
The high-end residential and commercial projects, which are in fairly advanced stage of planning, will further enhance the company’s market dominance in the vibrant neighbourhood.
Going by the overwhelming response to its latest condominium project, 10 Mont’Kiara, Sunrise can look forward to a strong take-up for its upcoming launches.
Since the launch of the 322 “super bungalows in the sky” last September, all the non-bumiputra units in 10 Mont’Kiara have been snapped up for total sales of RM552.5mil.
According to managing director Datuk Michael Yam, about 80% of the buyers are Malaysians, of whom close to 70% are repeat buyers.
The RM650mil 10 Mont’Kiara is the highest product range launched by Sunrise so far. The standard units have built-up from 3,478 to 4,090 sq ft while the four penthouses are from 6,500 to 7,500 sq ft.
The units are priced from RM1.7mil to RM5.5mil, or at an average price of RM535 per sq ft, a new benchmark for condominiums in Mont’Kiara.
Yam said the growing affluence among Malaysians and their choice for a more relaxed and secure environment had contributed to their preference for the “super condominium living.”
“A lot of wealth has been created in the past decade and today, the larger units are the most sought-after by our buyers,” he said.
On the average, repeat buyers, who have purchased and experienced the company’s residential products, make up about 40% of sales in all its project launches.
Living up to its reputation as one of the preferred addresses for expatriates in Kuala Lumpur, some 70% of the residents in Sunrise Mont’Kiara developments are expatriates.
“The expatriates are willing to pay high rentals for the comfort and lifestyle of living in our condominiums and this has contributed to the strong annual rental yields of 12% and good capital appreciation for our buyers,” Yam said.
Since the first Sunrise Mont’Kiara condominiums were completed in 1993, the company has maintained its leadership position in the much sought-after address through delivering quality residences and top-notch after-sales service.
In total, the company has completed 3,500 residences in nine condominium projects on more than 80 acres in Mont’Kiara.
Sunrise’s remaining 80.6 acres in Mont’Kiara, with an estimated gross development value of more than RM3bil, will continue to be the cash cow for the company over the next six to eight years.
Another 55 acres are in various stages of planning and development.
Sunrise chief marketing officer Lee Meng Tuck said the company’s market leadership was a result of extra efforts the company had expended over the years for the residents’ benefit.
“The economies of scale of having such a large number of high-end residences within the residential enclave have given us the opportunity to provide unique experiences for our residents. Sunrise’s efforts have created ‘the soul of the community’ that promotes a strong sense of community among the residents,” Lee said.
For the third quarter ended March 31, Sunrise recorded net profit of RM28mil, up 16.8% from the previous quarter, while revenue rose 37.5% to RM162.7mil.
Analysts are confident of more positive financial showing by Sunrise in the next few quarters.
“The overwhelming sales of 10 Mont’Kiara and Solaris Dutamas, coupled with the upcoming planned launches of 11 Mont’Kiara and The Residence phase two build-then-sell bungalows, will contribute to strong double-digit earnings growth in the next few quarters,” an analyst with a local brokerage said.
“As a niche developer in the high-end residential and commercial sector, Sunrise is in a strong position to exploit the positive changes in the property market with the relaxation of government ruling for foreign buyers, exemption of real property gains tax and the new public delivery system,” he added.