Property developer SP Setia Bhd has year-to-date posted RM1.25bil property sales, which has surpassed its financial year ending Oct 31 (FY09) target of RM1.1bil.
Analysts said the impressive property sales achieved was due to its attractive 5/95 financing campaign, which began on Jan 31.
An analyst with ECMLibra said after hitting its annual sales target, SP Setia terminated the campaign in July.
“As at Jan 31, sales were at RM102mil. The campaign boosted sales to RM1.25bil at end-July,” he said in a report yesterday.
However, the brokerage expects sales momentum to remain firm until end-FY09 due to conversion of sales bookings.
The analyst said SP Setia’s nine-month ended July 31 results came in within house but was below market expectations, as annualised net profit came in just 1.6% below its estimates, and 11.7% below consensus estimates.
“We upgrade our target price to RM3.36 (from RM2.65) based on price-earnings ratio (P/E) valuation of 19 times after taking into account elevated optimism on the property sector as well as strong sales momentum,” he said.
SP Setia is currently trading at a forward P/E of 26 times, which has exceeded peak valuation seen during past property cycles.
“This is not justified even after taking into account commendable sales achieved,” the analyst noted.
Moreover, he said, the stock was trading at a steep 37% premium to its realisable net asset value estimate of RM3.35.
The brokerage has maintained a “sell” call on SP Setia.
An analyst with OSK Investment Research also has a “sell” call on SP Setia as the stock was trading at a significant premium even to calendar year 2010 fair value.
“Its valuation is lofty in view of the current phase of the property cycle,” he said in a report, adding that the brokerage was less optimistic that SP Setia could repeat its feat (of higher property sales) for the rest of the year.
He said a correction in property stock prices appeared inevitable in the short term as investors, who had bought the story of a robust V-shaped recovery for the property cycle in 2010, were likely to be disappointed soon.
However, the brokerage has upgraded SP Setia’s target price to RM3.47 from RM2.10, based on calendar year 2010 valuations.
1 Petaling Residences & Commerz @ Sg.Besi is a newly launched mixed development situated close to well established residential areas such as Sri Petaling, Bandar Tasik Selatan and Pekan Sg Besi. A potentially rewarding investment for first time home buyers, this development spread over 1.66-acres of land is an exciting blend of stylish condominium living and conducive business environment all in one location.
Location
Access to the Kuala Lumpur city centre is within convenient reach via an efficient road and train transportation network plus major highways such as the MRR2/Kesas Highway, Besraya Highway, KL Putrajaya Expressway, New Pantai Expressway and KL-Seremban Highway.
Shopping centres such as Endah Parade, South City and The Mines Shopping Mall will keep you occupied during the weekends and the recognised neighbouring Bukit Jalil National Sports Complex, are just a short drive away.
Built-up Area
Housed in a 20-storey block comprising 250 units of condominiums on the 5th to the 20th floor, these units come in 3 bedrooms, 2 bathrooms and 3+1 bedrooms, 3 bathrooms layout ranging from 884 sq ft to 1,171 sq ft. For those who love gardening, there are courtyard garden units which come with an extra land of 315 sq ft to 411 sq ft.
Only 33 units of shop lots occupy the ground and 1st floor with built up areas from 775 sq ft to 3,647 sq ft. Prices for these shop lots range from RM435,888 to RM1,450,888 while the condominiums are priced from RM180,935 to RM420,888.
Facilities and Amenities
Adorned by lush landscaping, 1 Petaling Residences offers comprehensive facilities such as a swimming pool, wading pool, gymnasium overlooking a pool, reflexology path, and a children’s playground.
The development has been designed with a multi-tier security with video feed security system and CCTV, card access to the lift lobby and car park and also centralised SMATV which offer residents enhanced security and a valuable peace of mind.
Adding to the list is a 3-storey elevated car park, a BBQ area, a reading room equipped with WIFI access, a multipurpose hall, a laundrette and even a kindergarten.
Launch
Launched in April 2009, buyers of 1 Petaling Residences & Commerz may enjoy zero entry cost, zero per cent interest during construction, 21 days interest free EPF withdrawal, low down-payment, interest free easy payment, zero cost package and up to 95% loan margin including MRTA. This attractive promotional package is for a limited time only. Bumiputera buyers will enjoy a 5% discount. This development is estimated to complete around mid-2011.
The Developer
Securiservices Sdn Bhd, a wholly owned subsidiary of Berjaya Land Bhd is known for its previous development such as 4 blocks of Petaling Indah Condominium and a newly completed 3 storey shop office. Berjaya Land is a well established name that has long been associated with building homes in various parts of Klang Valley. More than a real estate developer, Berjaya envisions and creates lifestyles through developments that range from terrace link houses to high rise condominiums, premium bungalow lots and commercial shop offices.
VERVE® Suites is a daring new approach to contemporary living featuring innovative living concepts. Life here is about thriving beyond the space of your own home. The four towers which make up VERVE® Suites combine fully-furnished designer suites, sky lounges and an adjoining retail centre, VERVE® Shops; all within the same vicinity.
Location
Situated in the most desirable and sought-after neighbourhood of Mont’ Kiara in Kuala Lumpur, VERVE® Suites is a project of luxury services apartments housed in four blocks on a 5.87-acre freehold land. The four blocks are Viva Tower (Block A), Vibe Tower (Block B), Vogue Tower (Block C) and Vox Tower (Block D).
Travelling in and around Mont’ Kiara is effortless with its close proximity to the city. This development boasts excellent accessibility via major highways and expressways such as SPRINT Expressway, North Klang Valley Expressway (NKVE), Lebuhraya Damansara-Puchong(LDP) and the Federal Highway.
Hartamas Shopping Centre and Bangsar Shopping Centre are located just a short distance away. For even more options, via a new highway link just minutes away, residents are able to shop at Tesco Hypermarket, IKEA, The Curve, 1-Utama Shopping Centre and also Midvalley Megamall.
Built-up Area
A unique aspect of this development is the penthouses which have been converted into common areas. In Viva, the 35th floor is the Sky Lounge, which boasts a gym, 12-seater theatrette and games area with foosball and pool tables. The 36th floor is the Sky Terrace where the views will take your breath away. The height also prevents pesky mosquitoes during barbecue dinners. With the sky lounges located at the peak of the towers, residents can enjoy the magnificent penthouse view.
Previewed in July 2008, Vogue Tower of VERVE® Suites has a total of 255 fully furnished suites with built-up areas ranging from 432 sq ft (1-bedroom suite) to 932 sq ft (2-bedroom suite). There are four interior design themes to choose from; Centro Jazz and Cosmo Groove (both 432 sq ft) and Verdant Luxe and Metro Bliss (both 932 sq ft). There’s definitely one that can fulfill the lifestyle preferences of the buyers.
Besides innovative interior design and furnishings, Vogue Tower’s four fully-furnished suites come with imported German Bosch kitchen appliances, air conditioning, lighting, built in wardrobes, bedding frames and cabinets.
Launch
The first and only sky lounge in Mont’ Kiara, the Vertigo Sky Lounge & Sky Terrace of Viva Tower is now complete and open for preview.
With both Viva Tower and Vibe Tower fully sold without any advertisements, VERVE® Suites recently rolled out a brand new notion in the Vogue Tower called The Concentrico Living Concept. However, all the 1 bedroom units have been sold. Only available are the 2 bedroom units; Verdant Luxe and Metro Bliss with prices ranging from RM800 000 to RM950 000.
There’s a 5% discount for Bumiputra buyers.
Facilities & Amenities
The development will also be supported by a full complement of facilities offering 24-hour security, gymnasium, swimming pools, tennis, squash and badminton courts and recreation landscaped decks that come equipped with barbeque facilities.
Services such as concierge and housekeeping are able to keep your life in balance by taking care of all those little things you are unable to get to doing, so you can focus on other tasks.
Another unique feature is the adjoining retail community VERVE® Shops which offers the resident of VERVE® Suites a wide selection of retail shops and services. Its star attraction is the Mont’ Kiara Performing Arts Centre (MKPAC) that nestles on the rooftop of VERVE® Shops.
In addition to the recreational facilities at the podium deck, each tower comes with its own unique sky lounge. Viva Tower and Vibe Tower introduced The Vertigo Living Concept and The Hypercubes Living Concept respectively, offering a different living concept where residents are truly spoilt for choice when it comes to leisure and recreation.
Vogue tower also has The Gardens of Concentrico, named after the concentric circles of trees, offering open-air facilities with plenty of foliage.
The Developer
VERVE® Suites is developed by Bayland Sdn Bhd, a member of the Bukit Kiara Group of Companies and managed by Bukit Kiara Properties Sdn Bhd. Since its inception in 2000, Bukit Kiara Properties (BKP) has emerged as one of Malaysia’s specialised boutique developers. It is helmed by the experienced and renowned Dato’ Alan Tong Kok Mau and his son, N.K. Tong. The impressive collaboration between Dato’ Alan Tong and N.K. Tong proves to be one of the most formidable team in Malaysia when they turned acres of rubber estate land near the fringe of Sri Hartamas in Kuala Lumpur into an upmarket and exclusive neighbourhood way back 16 years ago, now known as Mont’ Kiara.
Known for their acumen and expertise in property development plus the wealth of experience under their wings, the duo embarked on a quest to become a niche player in building innovative and high quality homes for Malaysia’s elite customers.
Guided by its four core values of Quality, Innovation, Caring and Integrity, BKP has since been transformed from a small family-driven company into one of the few specialised boutique developers in Malaysia with a staff force of close to 90. In its continuous efforts to further improve on service quality, BKP embarked on a journey to be ISO certified in 2006. In December 2007, BKP successfully received its ISO 9001 certifications together with its sister company, Bukit Kiara Interiors (BKI). A year earlier, Bukit Kiara Builders (BKB) became the first in the group to obtain the ISO 9001 certification.
BKP also became the first and only property development company to win the prestigious Malaysian Business Ethics Award twice in a row (2006 and 2008).
The Gold Coast apartment market is looking up with soaring sales of new stock at the highest level in a year and more than double where they were six months ago - according to the latest Colliers International Gold Coast Apartment report.
There are 178 new apartments sold across the Gold Coast and northern NSW during the quarter, up from 117 in the March quarter, with September 2008 and its last quarters reporting 121 and 77 transactions respectively, says the report.
“This is the third quarter in a row where there has been improvement in sales volume and, as such, I think we can now clearly say the market has bottomed out and is on the improve,” says Brinton Keath, the project marketing director of Colliers International Gold Coast.
“Besides that, the gross sales value have increased, while supply levels have decreased - both of these are positive signs for the market,” says Keath.
In addition, he says that a number of quality projects providing larger owner-occupier style units have noticed good upswing in sales, which has also helped drive up the quarterly sales figure.
"What we are seeing at present across all our salesroom floors is lifting activity with investors and owner-occupiers becoming increasingly confident to re-enter the market,” he adds.
On the other hand, Keath also cites that, despite the noticeable increase in sales activity, he is not expecting any strong price growth over the coming 12 months. “This is the amount of time we believe it will take for the current supply levels to be soaked up,” he adds.
About three months ago, Colliers International says that the city's supply level of new apartments has tumbled, from 7.3 years in December 2008 to 4.6 years just three months later, while the rate of new apartment sales on the Gold Coast and northern NSW jumps 52% in the past three months to June this year.
Keath was also quoted in June, commenting that the increase in inquiry from Brisbane and interstate based investors looking for Gold Coast apartments, which converted into sales, has had the most impact to sales for that quarter, while he then added, “Although activity has picked up of late, the new apartment market is not yet out of the woods…..We are just at the beginning of the market turning.”
Coming back to this quarter, he says, in contrast to past quarters, it is now investors who are driving the market, not first home buyers who have been extremely active since the boosted First Home Owner Grant was announced by the Federal Government late last year.
However, Keath notes one of the best news over the past months is probably the resurgence of locals back into the marketplace, particularly for new apartments priced up to $900,000. He further added that properties priced below $600,000 are again proving the most popular.
"Completed stock is attracting the most interest, accounting for 53% of sales, as investors feel confident in securing apartments at today's prices and interest rates. With talks of interest rates are about to climb and the market is at the bottom, there is a clear sentiment in the market that now is the time to get in,” Keath notes.
Meanwhile, Colliers International Gold Coast’s research manager Lynda Campbell, who compiled the report, says four projects were sold out during the last quarter - Sunland's Avalon and Circle on Cavill, with both the South and North towers achieving sell-out, and Gallery Vie in Varsity Lakes.
At the same time, Campbell says that six new projects had also been included for the survey, representing the largest number of new developments to be included since the June 2008 quarter.
"Despite the new projects coming on-line, the supply level on the Gold Coast and Tweed is now sitting at 3.4 years, the lowest we have seen since June 2008.With several projects shelved and the majority in our survey either completed or under construction, this supply level is poised to continue to fall as sales rates increase, and we foresee the city could face an undersupply of new apartments in the future,” says Campbell.
That being said, Campbell also reveals that high rise sector has accounted for the lion's share of sales during the quarter, with 129 unconditional sales for a gross value of $95.6 million.
Medium rise apartments, defined as four to eight storeys in height, accounted for 27 sales, while there were 22 sales in the low rise sector, which encompasses buildings up to three storeys in height.
“The best performing project was Meriton's Brighton on Broadwater, with 42 sales, contributing to Labrador and Southport's position as the most active precinct during the quarter. In total, 89 sales were recorded across the nine apartment projects in Labrador and Southport, making the area the most active of all seven precincts including in the study. Whereas, the precinct taking in Surfers Paradise, Chevron Island and Main Beach was the next best performing, with 32 sales during the quarter”, says Campbell.
Earlier, the Colliers International Property Watch report dated February 2009, in assessing suburbs on the Gold Coast and northern NSW that have the potential to perform positively over the coming year- concludes that Gold Coast is a unique part of Australia with a great variety of living options ranging from absolute beachfront, river, canal, golf course and lakefront to hinterland acreage properties.
“These varied choices continue to make the Gold Coast a popular place to live. Many factors have combined to create a strong population growth, and there are no indications that this will not continue.
“With population growth comes demand for residential accommodation and non-residential development, this continued demand should hold the Gold Coast in good stead going forward”, says the above Property Watch report.
Emaar Properties PJSC (Emaar), a Dubai-based global real estate developer has unveiled a special Ramadan package for its homes, with flexible purchase options and benefits offered within the prestigious developments in the 500-acre Downtown Burj Dubai community, says the developer in a recent statement.
Listed on the Dubai financial market, the developer of world’s tallest building Burj Dubai, reveals benefits in purchasing the competitively priced properties include up to one-year waivers on maintenance fees for its completed residential units with sales initiative mainly caters for residences in The Old Town, The Old Town Island, Burj Views, South Ridge, and The Residence.
Ahmad Al Matrooshi managing director of UAE at Emaar Properties, says, "Emaar's new initiatives for the holy month of Ramadan and through September are specially tailored to offer several advantages for customers. These offers are part of our concerted efforts to support our customers and assure flexible and attractive options when making a purchase decision.”
“In addition to being part of a fully-established and one of the most popular destinations in Dubai, the homes in Downtown Burj Dubai that are now offered are ready to move in and are set apart by world-class build quality and modern amenities,” he adds.
Taman Tasik Prima, a premier lakefront township in Puchong offers a resort living environment overlooking a 200-acre lake. It is a whole different lifestyle concept that integrates with the beauty of nature - imagine resort living everyday!
Location
Prominently situated in the established township of Puchong and within the Multimedia Super Corridor (MSC), Taman Tasik Prima grants easy accessibility via major highways such as the Lebuhraya Damansara-Puchong (LDP) and Shah Alam Expressway (KESAS Highway). This excellent location and accessibility makes Taman Tasik Prima a prime and worthy investment.
Built-up Area
Taman Tasik Prima is a low density development offering only 13 units of Lake Bungalow and 9 units of Courtyard Villa.
The Lake Bungalow comes with a modern open plan gallery design concept where the entrance unfolds to an exciting three storey gallery space. Designed with the residents’ comfort in mind, the spacious built up of 4,500 sq ft consists of 6 bedrooms, 6 bathrooms, 2 study rooms, and a family room. There’s definitely ample space for a growing family. The living areas and master bedroom overlook private landscape areas and formal lawns where one can enjoy a magnificent view of the lake. These fine homes are tagged at an attractive price of RM1, 297,200 to RM1, 783,700.
As for the Courtyard Villa, they are designed to blend nature into the living space by allowing an abundance of natural light illuminate the home interior. With a built-up of 3,050 sq ft, all units come with 5 bedrooms, 4 bathrooms and a family room. The living and dining areas open out to a private courtyard. For those who enjoy entertaining guests, a private party can be held at the spacious compound area. Prices for these villas range from RM646,100 to RM883,200
Both the Lake Bungalow and Courtyard Villa are equipped with 3-phase electricity supply and an expansive car porch big enough to accommodate 4 cars! Thoughtfully planned 50 feet wide driveway with paved pedestrian walkways, streetscapes and landscapes add to the appeal of this idyllic lakeside neighbourhood.
Launch
Recently launched on the 15th of August, the developers are offering exclusive discounts for early birds. For the first 5 units of the lake bungalows and courtyard villas, a rebate of RM20,000 and RM10,000 are given respectively. Bumiputras can enjoy a 7% discount.
Facilities and Amenities
It is a complete neighbourhood that offers unique features such as a landscaped central park to every precinct to create a quality lifestyle; aesthetically appealing underground cabling and covered drainage, and most importantly provides a safe gated and guarded sanctuary for peace of mind.
With an unbeatable location close to a public transportation hub, a clinic, schools, kindergartens, police station and banks, Taman Tasik Prima offers convenience to its residents with these readily existing amenities. Shopping is a breeze with shopping centres including the IOI Mall, TESCO and GIANT hypermarkets.
Upcoming amenities include water sport facilities, a lakeside commercial village, central parks with children’s playground and a gazebo area.
The Developer
Taman Tasik Prima is developed by Prima Nova Harta Development Sdn Bhd, a joint venture with Bolton Berhad, an established name with more than 40 years in property development. Prima Nova Group is an up-and-coming property developer that is fast establishing a name for itself in the property sector.
Bangsar South, a huge 60-acre mix development project is targeted at the medium to high-end city living market. This exclusive and thriving development comprises The Village with a property gallery and F&B outlets, The Horizon with boutique offices, The Vertical with blocks of commercial offices, The Sphere which is a shopping mall and the high-end residential condominium – The Park Residences. Bangsar South is the perfect choice for those who long for a comfortable residential area that comes complete with an exciting lifestyle and conducive work environment all within the same vicinity.
Location
This massive township is ideally located within a ten-minute travelling time radius to Bangsar, Mid-Valley City, KL City Centre and Petaling Jaya. It is easily accessible via Federal Highway and the New Pantai Highway (NPE).
Conveniences are a short drive away as Bangsar South is within close proximity to shopping centres, such as Bangsar Shopping Centre, Midvalley Megamall, Bangsar Village and Amcorp Mall, as well as, institutions of education like The University of Malaya.
Built-up Area
Eight blocks of condominiums make their presence felt against the backdrop of a bustling cityscape. These 470 units of fashionable condominiums are designed with a built-up area ranging from 1260 sq ft to 5840 sq ft. Aligned on a hillslope so each condo enjoys a view of the city; this prestigious development comes with a choice of 2 to 4+1 bedrooms with en-suite bathrooms and modern facilities. Prices are attractively tagged from RM 563,800 to RM1, 215,800.
Established businesses will find themselves perfectly at home at The Horizon. Not just a fashionable boutique office, this 10-storey commercial centre with 24 blocks of boutique offices gives established business owners a conducive work environment fully equipped with exclusive modern facilities – perfect for today’s competitive business environment.
The only neighborhood mall within the area, The Sphere, attends to the discerning tastes and new wants of the modern family. This three-storey retail mall comes complete with convenient amenities such as banks, supermarket, F&B outlets as well as retail outlets. There are plenty of restaurants and stylish dining for business lunches, quick meetings and after-office gatherings.
The Village, known as Bangsar South’s entry statement comprises UOA’s property gallery for future phases, show unit, function hall, F&B outlets and also specialty stores.
Facilities & Amenities
The development boasts a modernistic clubhouse with attractions to occupy the whole family and also a well-planned security concept that includes 24-hour perimeter security within the development and CCTV surveillance to ensure peace of mind.
Ample car parks, both at the surface and basement are available. For those who prefer to use public transportations, the University LRT station is within walking distance.
The Developer
UOA (United Overseas Australia Ltd) was founded in Australia, in 1987, and listed on the Second Board of the Australian Stock Exchange (ASX) in 1988, and Main Board of ASX in 1992. In 1989, UOA saw the potential of property development in Malaysia and began its focus on property development, property investment, construction and property management in the country's capital, Kuala Lumpur. UOA has since then based its headquarters and business operation in Kuala Lumpur.
Through the years, UOA has grown from strength to strength, successfully developing many prime residential and commercial properties, rising above any adverse economic conditions and emerging as a recognized and trusted property group in Malaysia. To date, UOA has developed a GDV of RM2.5billion.
In 2005, the Group listed its key investment properties in a Real Estate Investment Trust (REIT) on the Main Board of Bursa Malaysia, the Malaysia Stock Exchange. In 2007, the Group marked another milestone with the successful secondary listing of UOA on the Main Board of Singapore Stock Exchange (SGX).
