SP Setia sees good prospects for property projects in Johor

SP Setia sees good prospects for property projects in Johor

BY DANNY YAP

PETALING JAYA: SP Setia Bhd sees good prospects for property developments in south Johor following the Government’s decision to transform the region into a major economic hub.

SP Setia group managing director and chief executive officer Tan Sri Liew Kee Sin said the allocation by the Government and expected flow of foreign investment totalling about RM15bil would provide further impetus to fast track the state's economy to the next growth level.

“We are very happy with the government allocation and positive sentiment towards the region,” he told StarBiz.

As a developer, SP Setia believed strongly in the potential of the Johor property market, especially the South Johor Economic Region (SJER), he said.

He said SJER was a boon for developers with substantial prime land bank in the area.

“Of particular interest to developers are the urban redevelopment plans slated for Johor Baru city and Port of Tanjung Pelepas, which will see existing industries upgraded to meet green standards and new standards being introduced to residential communities,” Liew said.

He said an emerging zone that would spawn the development of new townships was also on the cards.

In this respect, Liew said SP Setia's 1,509-acre Bukit Indah project in Bandar Nusajaya was one of the prime beneficiaries of the increased economic activity due to projects such as the Johor's new administrative capital, extension of Senai international airport and the Nusajaya Educity, which was expected to house at least four foreign universities with total enrolment of over 20,000 students.

Started in 1997, the Bukit Indah project still had close to 600 acres of undeveloped land bank that could benefit from the Government's recent pump priming activities, he said.

Liew said another project – Setia Tropika – located within the Tebrau corridor and forming part of the SJER, was another possible beneficiary.

Spanning 740 acres and with a gross development value of RM2bil, the project had transformed the development landscape of Johor Baru with its chic contemporary designs, he said.

“Setia Tropika will enjoy direct access to the North-South Expressway upon completion of the RM15mil link road being built by our subsidiary Setia Indah Sdn Bhd,” Liew noted. Its central location also afforded easy access to Johor Baru city centre and the causeway located 6km and 10km away respectively.

Asked if there would be a flood of investors buying properties in SJER, especially from Singapore, he said: “We believe that property demand in SJER is set to grow concurrently with the multiplier effects of the logistics infrastructure and introduction of commercially and investor-friendly incentives.”

On SP Setia's investment strategy in Johor, Liew said the company would capitalise on its yet-to-be developed land bank in the state, riding on the expected increase in economic activities.

He said SP Setia had successfully established a strong following in the Johor Baru market with its signature projects that showcased award-winning landscaping, innovative lifestyle concepts and quality homes at accessible pricing.

“Our Bukit Indah and Setia Tropika projects will underpin our growth in Johor. We are also actively scouting for more strategic land bank in Johor to further expand our presence and take advantage of the boost in infrastructure spending and economic activity,” said Liew.

Asked what was further needed to attract more investors to Johor Baru, he said the state government must put in place first-class logistics infrastructure, introduce more attractive incentives and maintain its low-cost lead to become a choice investment and tourism destination.

Other developers that have invested in the SJER include UEM World Bhd in Nusajaya and developers in Danga Bay.