KUALA LUMPUR: S P Setia Bhd registered sales of RM3.38bil for its third quarter ended Sept 30, 2021, despite the unfavourable impact of the Covid-19 pandemic on the property market.
The property developer said total sales had hit 89% of its RM3.8bil target set for 2021.
It said sales during the nine-month period had also surged 50% compared with the same period last year.
“Local projects contributed RM2.66bil whilst the remaining RM728mil were contributed by international projects namely Sapphire by the Gardens and Marque Residences in Australia, as well as Daintree Residence in Singapore.
“It is significant to note that Daintree Residence is 100% sold,” the group said in a statement.
Additionally, S P Setia said it achieved a revenue of RM2.73bil and pre-tax profit of RM353.7mil during the three quarters under review.
“Both revenue and pre-tax profit for the first nine months of the year are appreciably higher than the corresponding period in the preceding year, mainly driven by progressive revenue recognition from the strong take-up rates achieved.”
In the same statement, S P Setia president and chief executive officer Datuk Choong Kai Wai said he is encouraged by the sales achieved during the first three quarters of the year, despite the uncertainties in the outlook brought on by the Covid-19 pandemic.
“This would not have been possible if Team Setia is not committed and united in pursuing the sales target set.
“The steady sales of completed stocks, which form part of the RM3.38bil achieved, was RM585mil higher than that achieved for the same period last year of RM462mil, a commendable achievement despite the market challenges.”
S P Setia had launched projects totalling RM1.5bil in gross development value (GDV), comprising mainly landed terrace houses and semi-detached homes in the first nine months of 2021.
“Notable launches are planned in existing townships in Setia Alam, Setia EcoHill, Setia EcoHill 2, Setia Alamsari, Setia Bayuemas, Bandar Kinrara and Setia Eco Park in the central region, Taman Industri Jaya and Bukit Indah in the southern region, Setia Greens and Setia Fontaines in the northern region and Eco Lakes in Vietnam,” said S P Setia.
On the international front, the group’s 40% owned project in London, Battersea Power Station (BPS) witnessed another milestone with the official opening of its on-site underground train station as part of the northern line extension in London.
“The launch of the northern line extension marks the first major extension, designated in zone one, to the London underground network in this century and has become one of the single most significant milestones to date in the regeneration of BPS.
“Opened on Sept 20, 2021, this riverside place-making destination will be one of the most well-connected destinations in the capital,” S P Setia said.
Separately, Choong said S P Setia had been progressing well in its digitalisation journey.
“It is encouraging to see the digitalisation initiatives deployed on various platforms had generated quality leads and effectively facilitated the conversion of bookings to sales successfully.
“We will continue to make use of the digital platforms and create a more robust digital workplace to improve the effectiveness and efficiencies of the daily operations underpinned by cyber resilience.”
Additionally, Choong said the government’s support for the sector in Budget 2022, such as the low-interest rates to help spur homeownership, housing credit guarantee scheme to assist small businesses coupled with the reduction in real property gains tax rate from 5% to 0% for a property disposed of from the sixth year onwards, are expected to drive buying-interest
“We are confident of achieving the sales target for 2021 while remaining steadfast in our de-gearing initiatives to pare down borrowings and optimising our capital structure to strengthen our platform in pursuit of sustainable growth.
“We are optimising the use of our land banks to accelerate strategic development while ensuring alignment to the group’s environment, social and governance agenda as a responsible developer in building a sustainable community for all.”
As of Sept 30, 2021, the group has 48 ongoing projects, with effective remaining land banks of 7,334 acres valued at a GDV of RM124.6bil and total unbilled sales of RM9.84bil.
Meanwhile, an analyst with a local bank-backed brokerage said S P Setia’s aggressive marketing campaign, as well as the ongoing nationwide Home Ownership Campaign (HOC) has helped to drive sales for the group.
“We’re confident that S P Setia will hit, if not surpass its sales target for this year.
“With less than two months of the year and the HOC left, the developer will certainly be pulling out all the stops to drive as much sales as it possibly can,” he said.
The government kicked off the HOC in January 2019 to address the overhang situation in the country.
The campaign, which was intended for six months, was extended for a year. It generated sales totalling RM23.2bil in 2019, surpassing the government’s initial target of RM17bil.
The government reintroduced the HOC in June last year under the Penjana initiative to boost the property market after it was adversely affected by the Covid-19 pandemic.