Sime Darby Property confident of RM2.5b sales by June

Sime Darby Property, the property arm of Sime Darby Bhd, is confident of achieving its sales target of RM2.5 billion by its financial year ending June 30 this year.

“To date, we have transacted over 1,000 sales with a sales value of RM1 billion. We have 18 project launches in the pipeline this year, and we are very confident of achieving that target,” said Sime Darby Property managing director Datuk Jauhari Hamidi at the Sime Darby Property Lifestyle Collection 2016 campaign launch today.

According to Jauhari, some of the upcoming launches include the second phase of Elmina Valley in the City of Elmina and its Cantara Residences serviced apartments in Ara Damansara.

“In fact, we are launching our second phase of Elmina Valley which carries a gross development value (GDV) of RM212 million tomorrow. Our first phase of Elmina Valley, which was launched in February, saw an overwhelming response of a 95% take-up rate in just 24 hours,” Jauhari shared.

“People are saying that [the market] is slow and soft, but the fact that people had to ballot for the units [in Elmina Valley’s phase one] demonstrates the public's confidence in Sime Darby’s brand and products,” he added.

Meanwhile, the Cantara Residences consists of four towers with 222 units in each block, with a retail component of four levels. The development has a GDV of RM580 million.

The Lifestyle Collection 2016, which runs from today until June, offers residential and commercial properties from the developer with a range of incentives, benefits and privileges.

The products under this collection include: “The Signature”, which comprises luxurious and prestigious homes; “Inspired Living” for those who are looking for functional and spacious contemporary homes; “Practical Charm”, which are practical and stylist modern homes; “High Life” for urbanites looking for apartments; and “Prospectus”, which are commercial properties.

The Lifestyle Collection 2016 also sees the introduction of the Value Investment Privileges (VIP) Fast Track Programme where potential purchasers can engage with a panel of financial institutions to check on their credit status and obtain results in just 30 minutes.

“Once the buyers have received the green light and are eligible for the programme by the bank, they will be given a conditional pre-approved loan and they will be able to start shopping for their property in our collection,” said Jauhari.

“Previously, buyers picked the property they wanted to buy, and then they proceeded to apply for a bank loan to finance the purchase. Some of them who wanted to buy the property had their applications rejected because they did not fulfil the bank’s criteria. With this programme, it will facilitate and accelerate the entire property purchasing process as it gives the purchasers a peace of mind and lets them focus on choosing their desired properties,” Jauhari added.

Sime Darby Property is partnering Ambank, Bank Rakyat, Bank Simpanan Nasional, Citibank, CIMB, Maybank and RHB as the panel financial institutions for the VIP Fast Track Programme.

The VIP Fast Track Programme will be available for 41 projects located in the Klang Valley and Seremban. Some of the properties that can be purchased via this programme include those in residential developments in Bukit Jelutong, City of Elmina, Subang Jaya City Centre and Chemara Hills. For commercial projects, it will include office suites and retail lots in the Melawati Corporate Centre.

Commenting on the high loan rejection rates for potential buyers and the state of the property market, Ambank acting head of retail banking Anthony Chin told TheEdgeProperty.com that the main contributing factors to the slow market are poor sentiments and the consumers’ shaken confidence.

“The depreciation of the ringgit saw some investors investing in overseas projects last year and developers moving to the overseas market as well,” said Chin.

However, Chin noted that the demand for housing locally is always there for those who are looking to own their first home or even those who are looking for investment opportunities.

“We are very willing to help and assist [potential buyers] in loan applications and approvals as long as they fulfil the criteria in the banking guidelines. Some of the things we take into account are their payment record history via the Central Credit Reference Information Centre and their ability to repay their loans,” Chin said.

“The banks need to play their role of enriching the community where they give loans to enable homebuyers to buy a property and at the same time be regulators so that they do not overstretch the capabilities of repayment of the applicants,” he added. - The Edge Property