SP Setia has 44ha in Penang for RM3bil projects

By THE STAR

GEORGE TOWN: SP Setia Bhd still has 44ha on Penang island that it can use to develop some RM3bil worth of residential properties over the next five years.

SP Setia Property North general manager Khoo Teck Chong told StarBiz that the largest land-bank the group had in Penang was a 14ha site in Tanjung Bungah.

“It is being planned for the RM1bil GDV (gross development value) Setia Eco Forest project, comprising low and high-rise condominiums, scheduled to be launched in late 2014,” he said.

It also has 8ha in Balik Pulau, where the group planned to develop landed properties with a GDV of RM148mil.

“We also have 21 acres (8.5ha) in Sungai Ara, the state’s south-west district, where we plan to develop the RM350mil Setia Sky 8, RM250mil Sky Breeze condominium projects and the final phase of the RM130mil Setia Green landed properties,” Khoo said.

He also said the group was planning the RM600mil Setia Sky Vista condominium scheme on 6ha in Relau.

The group has smaller land parcels in Jelutong (3.8ha), Taman Sri Nibong (1.6ha), Teluk Kumbar (1.13ha) and Gurney Drive (0.73ha), where RM900mil worth of high-rise projects are planned.

“We are planning a RM500mil condominium scheme in Jelutong, and the RM200mil Setia Sky Hill and RM60mil Setia Sky Cube projects respectively in Taman Sri Nibong and Teluk Kumbar, and the RM140mil Setia V Residence Tower B in Gurney Drive,” he said.

According to Khoo, SP Setia will kick off the Setia Sky Vista and Setia V Residence Tower B projects in late 2013.

He said the group expected its properties on the island to contribute RM400mil to its revenue for the current year ending Oct 31, compared with RM350mil in 2012.

“We expect to perform better than last year because the high-end condominium projects such as Setia Pinnacle, Setia Triangle and Setia V Residence received strong response.

“So far we have achieved RM150mil in sales from our launches in Penang,” Khoo said.

On another note, he said there was no oversupply of SP Setia projects on the island.

“Our sub-sales are doing well. For example, our Reflection condominium scheme in Sungai Ara is now transacting at RM550 per sq ft, compared with RM350 per sq ft three years ago.

“In prime areas like Gurney Drive, we price our properties at RM1,200 per sq ft, compared with RM1,000 a year ago, which is still very attractive for a good location,” he said.

Meanwhile, Raine & Horne Malaysia director Michael Geh said that the outlook for the second half of 2013 looked flat versus the first half, due to tighter housing loan conditions imposed by banks.

“This has reduced the number of speculators in the market. In the first half, we had more genuine buyers purchasing their first property.

“Properties in choice location from reputable developers will always draw the attention of property seekers,” Geh said.

– Malaysia Real Estate News

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