SUNWAY City Bhd (SunCity), which is building its image as a value-creating developer, will offer more sought-after and lifestyle houses in strategic locations and through joint ventures with landowners.
Most of the projects are designed to meet the needs of the home upgraders – those looking to move into more prestigious addresses and better living lifestyles.
Besides minimising the holding cost and initial cash outlay, the joint ventures have also reinforced SunCity’s image as a reputable developer of quality and well-conceived projects.
SunCity group head of sales and marketing Terence Saw said many landowners had approached the group to undertake joint developments after seeing how SunCity could add value to their land.
“SunCity has proven to be a well-regarded developer with strong branding and image. Wherever SunCity has projects, property prices around the neighbourhood have appreciated by between 10% and 15%. By itself, SunCity properties also carry price premiums of at least 10% compared with other similar products nearby,” Saw told StarBiz in an interview.
By opting for joint ventures, the landowners can leverage on SunCity’s branding, its product development, project management as well as sales and marketing expertise.
Among the successful joint ventures are those undertaken with Syarikat Permodalan Kebangsaan Bhd (SPK) for the Sunway SPK Damansara development and Selangor Economic Development Corp (PKNS) for Sunway Damansara.
SunCity also has joint ventures with Dijaya Corp Bhd for Casa Kiara, a luxurious condominium in Sri Hartamas. Another joint-venture condominium development is set to be launched in the early part of 2006.
Since its launch in June last year, the 63-acre Sunway SPK Damansara has registered sales of RM296mil.
To-date, 318 2½-storey terrace houses and 190 double-storey houses have been launched, of which about 88% and more than 98% have been sold respectively.
Another 50 units of the 2½ -storey terraced house were launched during the weekend. The end and corner units, priced at about RM798,888 and RM1,098,888 respectively, were snatched up. The final phase comprising 54 2½- storey terrace homes will be launched by the end of the year.
Sunway Damansara has also emerged as a bustling neighbourhood, with more than 3,000 property units sold and more than 2,500 units completed so far.
In August, the second block of 124 units of semi-detached condominiums of 1,400 sq ft each, would be launched. About 30% of the development land is reserved for landscape.
The next launch would be the 1½-storey semi-detached factories priced from RM1.4mil each.
“These joint ventures have worked very well for us and we see potential to venture into more such partnerships,” he said.
Its latest tie-up is with Negara Properties Bhd that involves the development of 54 acres in Taman Melawati into an upmarket residential enclave. The development will feature a good mix of landed residential homes and condominiums.
The SunCity Research and Development team, together with the architect, is in the advanced stages of formulating the development concept and the project should be ready for launch next year.
Saw said there was growing demand for lifestyle properties such as small office/home office (Soho) within the Kuala Lumpur city centre and in the suburban areas such as Bandar Sunway.
Already popular in Singapore and many parts of the region, the Soho concept would be an attraction in the near future, especially for the middle-age senior executives and the business entrepreneurs looking for convenience and comfort.
“Developers must be visionary, have a strong product and market knowledge in order to transform visions into reality.
“Market research, development concept and feasibility studies have to be undertaken to size up the market needs before any product launches,” he said.
He said that SunCity has distinct job specifications for the sales team and the marketing team.
Besides selling, the role of the sales personnel is also to keep abreast of the current market conditions and changes, especially the buying habits of purchasers.
Training for sales personnel is part of the commitment of the group to serve our customers better.
The marketing staff, who spend a great amount of time in the research and development (R&D) process, will come out with strategies that are adapted to the changing market conditions.
Despite concerns of over-supply of residential houses, he said, the ultimate winners would be developers who have done their homework and offer products that meet the needs profile of their buyers by being innovative and by thinking out of the box.
Innovation and well-designed products have added value to the company’s product offerings and established SunCity.
“Concerns that the market is saturated are common even about 30 years ago, but the immense growth of the property industry shows that the market is very resilient and is able to absorb the supply that has come on stream over the years.
With it, the creativity and innovation of the industry have also progressed substantially.
“Being the developer of choice, SunCity will continue to make a difference in the country’s property landscape by adding value to projects and building quality homes in wholesome environments,” Saw said.