Strategies to face challenges

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SERI KEMBANGAN: UEM Sunrise Bhd is confident of its prospects for this year as the company believes it has the right strategies and relevant safeguards to face potential challenges.

Chief executive officer Sufian Abdullah said the property developer is going into the new year with the “right mitigation processes” in place.

“As long as we do that and assuming there is no complete collapse of the property market, I believe that we will always be in the game,” he said at the launch of UEM Sunrise’s Kaia Heights sales gallery here, yesterday.

Sufian said the group is also unperturbed by the fact that the Home Ownership Campaign (HOC) has not been extended into 2022.

“The campaign provided great motivation for the property market during the pandemic. However, we did not expect the HOC to continue this year and we did factor that into our strategies for 2022.

“We are confident that with the right product, pricing and positioning, we can do well,” he said.

The government kicked off the HOC in January 2019 to address the overhang situation in the country.

The campaign, which saw developers offering various discount packages and incentives, was initially intended for six months but was extended for a year.

The HOC was reintroduced in June 2020 under the Penjana initiative to boost the property market after it was adversely affected by the Covid-19 pandemic.

Many agreed that the campaign, which ended on Dec 31, 2021, had helped to drive sales for many developers.

Separately, Sufian acknowledged that building material prices have been on the rise. He said UEM Sunrise is monitoring the situation closely.

“We’re aware of the escalating material prices but our ability to be resilient to those changes is something that we’re working on extensively.”Prices of building materials began to rise in late 2020.

From January to August last year, the cost index for building materials had increased by as much as 19% on the anticipated recovery of the economy and rising global market prices.

Separately, Sufian said UEM Sunrise has been satisfied with the public’s response to the group’s Kaia Heights highrise development in Seri Kembangan.

“The take-up rate has been encouraging. So far, we’re just under 50% for the first phase.”

Kaia Heights, which was launched in March of last year, is built in two development phases where each phase consists two towers, housing 30 storeys each.

With a starting price of RM567,800, the built-up areas of each unit range between 972 sq ft and 1,437 sq ft in the first phase.

The estimated completion date for the first phase is targeted at the first quarter of 2025.

Sufian said UEM Sunrise would likely launch the second phase of Kaia Heights later this year.

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