SP Setia new property sales to hit RM1.2bil in JB??

SP Setia new property sales to hit RM1.2bil

KUALA LUMPUR: SP Setia Bhd is targeting for new property sales to hit RM1.2bil in the financial year ending Dec 31.

This will be achieved on an expected surge in demand for homes and commercial units in prime locations in the Klang Valley, south Johor and Penang, group managing director Tan Sri Liew Kee Sin said at the Invest Malaysia 2007 conference.

A third of the sales would come from developments in Johor, where demand is expected to rise with the implementation of projects in the Iskandar Development Region, he added.

Yesterday, the Government announced that it would scrap real property capital gains tax effective April 1.

“The new rules is a big boost to the property market,'' Liew, also SP Setia chief executive officer, said.

“The move would encourage investors to come into the market,'' he said, adding that he expected the demand for commercial properties to rebound strongly.

SP Setia plans to launch at least two commercial property projects this year with a combined value of RM620mil.

Liew estimated that commercial units would account for 10% to 20% of the group revenue this year.

The group, he said, would also launch two housing projects this year – the RM2bil Setia Eco Garden in Johor and the RM900mil Setia Pearl Island in Penang.

SP Setia has a land bank of 4,600 acres, of which 2,200 acres are in south Johor.

Meanwhile, Liew said the group was looking at opportunities to build homes in new growth corridors in the east coast and Sabah.

He also said the group was eyeing foreign markets like Vietnam where there was growing demand for suburban housing developments.