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Friday, 7 July 2017

(The Edge Financial Daily) Strong take-up for SYF’s projects in Sungai Long and Semenyih

BY SHAWN NG

PETALING JAYA: Furniture manufacturer and property developer SYF Resources Bhd has seen take-up rates of at least 80% for its projects south of Kuala Lumpur in Bandar Sungai Long and Semenyih, Selangor.

“The overall property market in the country is in a period of ‘digestion’ but the Sungai Long
and Semenyih areas do not seem to be affected, thanks to the MRT Sungai Buloh-Kajang Line, the universities and the new EKVE (East Klang Valley Expressway),” SYF Resources executive director Datuk Sri Chee Hong Leong told TheEdgeProperty.com.

Universiti Tunku Abdul Rahman (UTAR) in Bandar Sungai Long and the University of Nottingham in Semenyih have been keeping the demand for properties robust in these two areas while the upcoming EKVE and the MRT Sungai Buloh-Kajang Line are poised to improve connectivity and accessibility, he added.

He expects the two places to boom in the next three to five years, with property prices in Bandar Sungai Long growing by 10% to 15% in the next one to two years mainly due to the completion of the MRT line.

The closest MRT station to Bandar Sungai Long is the Batu Sebelas Cheras station, which is about a 3.5km drive from the UTAR campus.

Through its property arm SYF Development Sdn Bhd, SYF Resources has launched several projects in Bandar Sungai Long and Semenyih since 2012, namely Semenyih Hi Tech 5, Semenyih Hi Tech 6, Wira Heights 3, Kiara Plaza, Lavender Residence and Iris Residence.

With a gross development value (GDV) of RM113 million, the recently launched Iris Residence condominium in Sungai Long saw 80% take-up for the 176 units launched. The project is expected to be completed by the third quarter of 2020 (3Q2020). Units have built-ups of 1,058 sq ft and 1,209 sq ft with prices from RM541,800 to RM630,800.

SYF Resources’ earlier projects have done well. Both Semenyih Hi Tech 5 and 6 have been fully sold and completed in 2015. Semenyih Hi Tech 5 has a GDV of RM100 million and consists of 48 semi-dee factories with built-ups from 4,975 sq ft to 9,300 sq ft. They were sold between RM1.7 million and RM2.99 million.

Semenyih Hi Tech 6, which has a GDV of RM147 million, offered 68 semi-dee factories ranging from 5,476 sq ft to 7,200 sq ft and priced from RM1.9 million to RM2.7 million.

In 2Q2016, the developer completed Wira Heights 3 in Bandar Sungai Long, comprising 42 semidee and bungalow homes with a GDV of RM76 million. It recorded close to 100% of sales for the units with built-ups from 3,770 sq ft to 5,070 sq ft and tagged at RM1.9 million to RM2.8 million.

Currently being constructed with completion by the end of this year is the RM350 million GDV Kiara Plaza mixed development in Semenyih. Its 12 three-storey shopoffices were fully taken up while the 56 single-storey shopoffices and 763 serviced apartment and Small-office Home-office (SoHo) units have been 80% and 95% sold respectively as at end-May this year.

The shopoffices have built-ups from 1,292 sq ft to 8,767 sq ft with prices from RM818,000 to RM4.3 million, while the serviced apartments and SoHos are between 477 sq ft and 1,097 sq ft with prices from RM278,000 to RM523,000.

Also to be completed by year end is Lavender Residence, which comprises two blocks of 276 apartment units. Located in Bandar Sungai Long, all units in the development with a GDV of RM135 million have been sold. Unit built-ups are from 1,080 sq ft with prices from RM526,000 to RM708,800.

Looking ahead, the group is seeking to acquire more land or establish joint-venture projects in Bandar Sungai Long and Semenyih. SYF Resources’ property development business contributed 50% to its overall revenue in its financial year ended July 31, 2016, said Chee.

“However, we are not in a rush to buy land as the goal is to identify sites that we can offer products that can sell,” he said.