KUALA LUMPUR (March 4): Sunway Bhd has set a sales  target of RM1.6 billion for its property division this year, as the group launches RM2.8 billion worth of properties in anticipation of an economic recovery, amid the global Covid-19 vaccine rollout.

The target is higher than the RM1.3 billion sales achieved last year, and the RM1.5 billion sales registered in 2019, said Sunway’s property division managing director Sarena Cheah during a virtual briefing today.

She said 40% or RM1.1 billion worth of the property launches will be in the Klang Valley, including Sunway Belfield in Kuala Lumpur city centre with a gross development value (GDV) of RM 320 million.

The other projects are D’Hill @ Sunway Damansara in Kota Damansara (GDV of RM 220 million), Sunway Artessa in Wangsa Maju (GDV of RM 300 million), and Jernih Residence in Kajang (GDV of RM 270 million).

The remaining 60% of launches will be international projects, namely an executive condominium in Singapore, Parc Central Residences with a GDV of RM910 million, and Phase 3 of Sunway Gardens Condominiums in Tianjin, China with a GDV of RM780 million.

“Over the period of the pandemic, I believe many people have experienced a reset of priorities. Many have developed greater appreciation of their families and their health and wellbeing,” said Cheah.

“The strength of the location of all our new launches which are within matured neighbourhoods, will reduce time spent by our residents on commuting for work, school or even grocery shopping, and allow the time to be spent more meaningfully with the family or working out at our development’s various facilities,” she added.

Cheah said sustaining the nation's economic growth would augur well for the property market.

“With interest rate trading at the lowest level at this point, even if it increases a little bit, it is still low. I would say the key to watch out is the economic growth for the country and employment,” she said.

“Geographically, our diversification did help when Malaysia went through quite a bit of MCO (movement control order) periods last year,” said Cheah, noting that the Singapore property market was not affected as badly.

Additionally, Cheah said the property developer is still looking for opportunities and will be “choosier” in securing more landbank.

“We want to be careful as we want to develop products that are sought-after and in demand, and that are within the price range that people want to buy it for,” she said.

“As a developer, we are big in townships, mainly in the Johor region and Ipoh, while in Klang Valley and Penang, we have more integrated developments. And now, we are looking into standalone developments such as smaller plots of three to five acres within Klang Valley,” said Cheah.

As of Dec 31, 2020, Sunway Property’s land bank comprised 3,324 acres with a GDV of RM51.3 billion, to be developed over a period of up to 15 years.

Currently, its unbilled sales stand at RM2.2 billion, providing clear earnings visibility for the immediate two to three years.

On the proposed listing of its healthcare division, Cheah said Sunway Medical Centre is indeed “a very good candidate for listing” and further updates will be announced in due course.

“It is a very good venture for us. I think healthcare is operating in a rising space and as more and more people are being cautious about wellness and health. We are able to leverage the healthcare side to work with us in building up nursing homes and senior care assisted living and even the TCM (traditional Chinese medicine),” said Cheah.

Sunway’s shares closed five sen or 3.33% higher at RM1.55 today, valuing the group at RM7.65 billion.