Sunway to apply wait-and-see approach on property launches

Sunway Bhd, which has an unbilled property sales of RM2.5bil as of March, will apply a wait and see policy and plan its property launches accordingly amid the soft property market.

Its property division managing director Sarena Cheah said due to the uncertain market sentiments and the recent Strata Title Act, it has impacted its property launches in terms of timing.

"The Strata Title Act is good in the sense it gives clarity to consumers, but it will affect the timing of our launches.

"But the beauty of the group is we have recurring income from our property investments that contribute about one third to the company's profits," Cheah told reporters during a briefing on the group's second half property launches on Thursday.

The company is expected to launch about five property developments in the third and fourth quarters of this year, namely Sunway Gandaria, Sunway Velocity, Sunway Geo Residence 3, Casa Kiara 3 and Sunway Emerald Residence. These properties have a combined gross domestic value (GDV) of about RM1.5bil.

Sunway Bhd aims to achieve RM1.7bil sales for 2015.

As it is also difficult to get loan approvals due to cooling measures, the group hopes to achieve RM500mil sales in the second half since it has got that number in the first half. - By The Star