KUALA LUMPUR (Jan 27): Crown Group is banking on a looming undersupply in the apartment market and a surge in buyers this year to push ahead with its first apartment projects in Melbourne and Brisbane in Australia, as well as Los Angeles in the US, after reporting a rise in both profit and off-the-plan sales in the 2020 financial year.
The group earlier this month reported financial results for the 12 months to June 30 of a 6% pre-tax profit to A$35.6 million and sold 111 apartments worth A$131.5 million, despite four months of the pandemic and nationwide lockdown in that period, it said in a statement.
Recently, the group announced Japanese architect Kengo Kuma and Australian firm Plus Architecture are to design the A$500 million Brisbane project in the West End, and the launch of its proposed LA project that is pending entitlement approval in late 2021 by the City of Los Angeles. Due for completion in 2024, the US$500 million mixed-use high-rise condominium and hotel tower in the city's downtown district is a joint venture between Singapore-based Magnus Property Pty Ltd and one of Indonesia’s biggest property developers, ASRI.
It has also successfully conducted its first international sales launch via Zoom conference for its Artis project in Melbourne. The project, which comprises 152 luxury apartments and penthouses, has achieved A$6.5 million sales within two weeks when a limited number of luxury apartments were released to the Indonesian market in December last year.
Crown Group co-founder and chief executive officer Iwan Sunito said it was the first time the group launched a project in Indonesia before any other country and the results were astounding. “This shows that there is a market among Indonesian buyers, particularly for Melbourne, and that buyers are looking to a future beyond the pandemic. They are thinking ahead for their children to be able to study in Australia and when the international borders are open,” he said.
According to Iwan, both the Melbourne and Brisbane projects would benefit from a forecast undersupply of new homes in both cities, caused by the current slowdown in residential construction activity. Both are within minutes of the central business district and offer modern living with quality finishes in an appealing and convenient location.
"In two to three years' time, there will be a huge demand for new homes in Australia that will not be met by supply because of the lag in construction that is happening now, particularly in areas of need such as inner-city areas. All this, coupled with the low cost of borrowing due to record low interest rates, are expected to drive new apartment prices up,” he said.
Meanwhile, the group will also focus on its big inner-Sydney apartment projects, including the A$575-million Mastery at Waterloo consisting of 368 apartments and the A$1 billion Eastlakes Live project in the inner south with more than 530 apartments, where three towers have topped out.