Here are the 5 biggest leading property developers in the country with proven track records
by S BIRRUNTHA / pic credit: www.propertyguru.com.my
IT IS an old wisdom that buying a residential property signifies financial maturity and stability of the purchaser. But such life-changing decisions could often go awry if a buyer, particularly young buyer, fails to do thorough legwork on the developers and properties they are interested in.
Buyers in fact have to pay close attention to the health and breadth of these developers, especially when there are about 188 private developers with about 200 abandoned projects, according to the Housing and Local Government Ministry’s website.
To date, some 11 abandoned projects were flagged in 13 states with Selangor infamously leading the highest number of abandoned projects numbering 75.
As such, choosing the right property developer is just as essential as buying the right home.
According to online portal PropertyGuru, a good property developer needs to have a comprehensive understanding of planning laws and construction requirements, alongside an appreciation for how to realise a good investment return.
“The importance of choosing a good developer can boil down to good construction practice, financial security, planning and scheduling, the value of reputation, as well as brand recognition,” it said.
Hence, one of the most common things to look out for when buying a property is the developer’s reputation, as well as its value in the market.
Below are the five biggest leading property developers in the country that have made their way to the top with proven track records.
The list is arranged in alphabetical order, based on their market capitalisation and assets size.
Eco World Development Group Bhd
Eco World Development Group Bhd (EcoWorld) is a listed property development company with a market capitalisation of RM1.88 billion.
According to its website, the EcoWorld brand is spread across three key economic regions in Malaysia with 20 projects in total, which include new townships, integrated commercial developments, luxury high-rise apartments and green business parks.
The group currently has 8,126.4 acres (3,288ha) of landbank with a total gross development value (GDV) of RM87.5 billion.
Through Eco World International Bhd, the brand has spread its wings to the UK and Australia.
For its latest fourth quarter of 2019 (4Q19), the group posted a net profit of RM81.5 million, which was a 19% increase from its previous corresponding quarter. Revenue for the quarter increased 49% year-on-year (YoY) to RM906.5 million.
IOI Properties Group Bhd
IOI Properties Group Bhd (IOIPG) is a listed property developer with a market capitalisation of RM6.33 billion.
According to its website, IOIPG currently has a total of 10,000 acres of landbank in Malaysia and abroad. Its principal activities include property development, property investment, leisure and hospitality.
It has also successfully developed sustainable townships in the notable regions of the Klang Valley and Johor in Malaysia, while embarking on property developments in Singapore and China.
IOIPG is consistently ranked among the top developers in Asia and it has raked in numerous awards by leading publications and organisations.
For its 1Q20 ended Sept 30, 2019, IOIPG’s net profit rose 22% YoY to RM136.64 million, while revenue for the quarter fell 2.3% YoY to RM540.32 million.
Sime Darby Property Bhd
Sime Darby Property Bhd is another listed developer with a market capitalisation of RM5.48 billion. It has a 45-year track record in developing residential, commercial and industrial properties.
It is Malaysia’s biggest property developer in terms of landbank with a balance developable area of 20,572 acres and a total estimated GDV of RM89.3 billion, it website states.
Sime Darby Property also has a presence in the UK through the redevelopment of the iconic Battersea Power Station project in London.
The group has 23 active townships and developments that are strategically located and connected to major highways and transportation hubs within the Klang Valley, Negri Sembilan and Johor.
Its net profit for the 3Q19 ended Sept 30 fell 12.4% to RM25.24 million from RM28.8 million a year earlier, while its quarterly revenue jumped 77% YoY to RM850.03 million.
SP Setia Bhd
SP Setia Bhd is a listed property development and investment company with a market capitalisation of RM5.38 billion. Its major shareholder is Permodalan Nasional Bhd.
SP Setia has projects in Selangor, Penang, Johor and Kota Kinabalu in Sabah, as well as in Vietnam, Singapore, Australia, China, Japan and the UK.
Its portfolio of developments includes townships, eco-sanctuaries, luxury enclaves, high-rise residences, commercial and retail, and integrated mixed developments.
The group has branched out to affiliated businesses, such as Setia Precast Sdn Bhd, a general building contractor that is responsible for the development of some of Malaysia’s most iconic buildings.
For its 3Q19 ended Sept 30, SP Setia’s net profit jumped 67.1% YoY to RM108.93 million despite revenue dropping 6% YoY to RM932.07 million.
Sunway Property is the real estate arm of Sunway Group Bhd. Sunway Group currently has a market capitalisation of RM8.83 billion.
The group is one of Malaysia’s top multinational propertyconstruction corporations, with businesses in 50 locations worldwide across 12 industries.
The company has won over 200 international and national awards, which proves its innovation and ability to balance its financial performance and build quality infrastructure.
Sunway Property mostly builds hotels and shopping malls, including Sunway Pyramid and Sunway Resort Hotel & Spa.
It has also delivered an extensive portfolio of properties in markets such as China, Singapore, Cambodia and Vietnam.
Last month, The Malaysian Reserve reported that Sunway Property is aiming for RM2 billion in sales this year after achieving RM1.55 billion in sales last year.