SkyWorld to clear RM1b unbilled sales by 2018

By IZZAT RATNA / Pic By ISMAIL CHE RUS

SKYWORLD Development Group has unbilled sales of RM1 billion for five moderately priced to high-end projects and one affordable housing development, which the company expects to fully invoice by the end of 2018.

COO Lee Chee Seng said the handover process of the affordable home project — which is part of the firm’s corporate social responsibility (CSR) initiative — would be completed by the end of 2017, while the remaining developments would follow suit by the end of next year.

Lee, who is also the property developer’s ED, said a low-density residential project in Setapak comprising 333 units spanning across 0.81ha of land is also in the pipeline.

“The estimated gross development value (GDV) for that upcoming project is approximately RM280 million with an indicative selling price of below RM1,000 per 0.09 sq m.

“We will make a further announcement on the project in terms of its specifications, selling price and launching date by October this year,” he told reporters at SkyAwani 1’s groundbreaking ceremony in Kuala Lumpur (KL) yesterday.

Meanwhile, SkyWorld founder and group MD Datuk Ng Thien Phing said the SkyAwani 4 — which is the latest addition of the affordable housing project after the series of SkyAwani 1 to 3 — is slated for an official launch in 2018.

The upcoming development, which is planned for development in Setapak, KL, would be pegged below RM300,000 per unit.

“We are still at the drawing board. Therefore, we have not made the final decisions, nor have we any concrete plans on its gross development cost and GDV.

“The remaining phases of our affordable housing projects would be introduced progressively in the next year onwards, depending on the market’s condition and consumer’s demand,” Ng said.

Last July, SkyWorld unveiled the SkyAwani 3, which includes two towers that comprise 699 units and a third tower that offers 567 units.

The average build-up for each unit is 74.32 sq m, seated on a 1.84ha of leasehold land with an estimated GDV of RM570 million.

SkyAwani 1 and 2 are located in Sentul and Jalan Ipoh, and were both sold out during its launch period last year.

The series of SkyAwani 1 to 3 has a fixed selling price of RM300,000.

Meanwhile, SkyWorld is planning to strengthen its position in the central region by continuously acquiring new land — with 80% to be allocated for development that is within the moderate and high- end market.

The remaining 20% of landbank is slotted for the affordable home segment.

Ng said the company will exercise two strategies to increase its market presence — to acquire new land in KL, while continuing with its aggressive development on existing plots of land.

“Our products are not just within the affordable housing bracket, as the majority of our launches are tagged at between RM300,000 and RM1 million.

“Hence, the moderately priced to high-end segment would be the firm’s focus in the future, while the affordable housing segment is purely a CSR initiative to boost home ownership in the country,” Ng said.

The company is also not planning to expand outside of KL as all of its medium to long-term developments would remain within the central region.

Currently, SkyWorld’s landbank in KL stands at approximately 55.44ha — which has an estimated GDV of RM13 billion.

Commenting on the upcoming budget 2018, Ng hopes that the government would shorten the selling off gap or purchasers’ bond for the Federal Territories Housing Scheme (RUMAWIP) from 10 years to five years.

“I hope the government would agree to this request, as this is what the majority of buyers for RUMAWIP are wishing for in order to fetch a higher resell value in the market.

“RUMAWIP should have similar flexibility with what has been given to the 1Malaysia People’s Housing initiative, which has a shorter selling off tenure,” he said.

Ng also expects the property market would improve as buyers are gearing up to upgrade their living facilities following the upcoming general election, which is rumoured to take place in 2018.