SP Setia to launch RM5.5b worth of new projects

Khor says 2H18 will see upcoming launches — Setia Fontaines in Penang and high-rise projects in Singapore and Australia


SP SETIA Bhd expects to launch some RM5.5 billion worth of developments locally and overseas in the second half of 2018 (2H18).

President and CEO Datuk CJ Khor said the upcoming launches would focus on both landed and residential developments, namely Setia Fontaines in Penang and standalone, high-rise units in Singapore and Australia.

“The development in Australia is a continuation of the UNO Melbourne project, while a high-rise project is in the pipeline in Singapore,” Khor told reporters after the company’s AGM in Selangor yesterday.

“The upcoming launch in Penang would be a continuation of our existing township development,” he said.

At present, SP Setia has some RM7.95b worth of unbilled sales. Its landbank stands af 9,586 acres (3,879ha) valued at about RM139 billion in gross development value, which is expected to sustain the company over the next 10-15 years.

SP Setia is also on track to to achieve its sales target of RM5 billion for financial year 2018.

Khor said the company has secured RM1.1 billion in sales to date.

“As such, we are positive to stay on track to achieve the sales projection on the back of RM655 million revenue and RM94 million net profit secured as at first quarter this year,” he added.

Commenting on the government’s announcement for the revision of Goods and Services Tax (GST) rate to zero percent, Khor said it is still premature to access the impact in the property market.

“It is too early to see the whole impact because with the absence of GST, the government is also considering to reintroduce the Sales and Services Tax.

“So, until we see the details, we do not know how it will affect the overall construction cost,” he said.

Khor pointed out that since commercial properties would now not be subjected to GST, buyers would probably wait until June 1 before considering to purchase commercial assets.

“Hopefully, I think with GST out of way, the public’s sentiments would be better and they might be more encouraged for big ticket purchases such as housing.”