SP Setia Plans RM3.5bil New Township
|August 26, 2014||Posted by Ann Khee under Property News|
Great news to residents in Semenyih-Kajang.
Earlier this month, SP Setia announced the acquisition of 1,010.5 acres landbank in Semenyih for RM330.1mil cash or RM7.50 psf. The move will see the property group more committed to building starter homes priced from RM300,000.
We can anticipate an exciting property development coming soon, perhaps a replica of Setia Alam township.
- The land, with a generally undulating terrain, is situated midway between the towns of Semenyih, Bangi old town and Beranang.
- It is approximately 5 kilometres south of Semenyih; 7 kilometres east of Bangi Old Town; and 2 kilometres north-west of Beranang.
- It is also located approximately 12 kilometres south of Kajang town and 25 kilometres south of Kuala Lumpur City Centre.
- The travel time to Kuala Lumpur City Centre is approximately 40 minutes.
Proposed Property Development
S P Setia intends to develop the site into a mixed residential township development project with an estimated gross development value (GDV) of RM3.5bn. The proposed project is expected to tap into strong demand for attractively priced homes by first time home owners and other home buyers in the Semenyih-Kajang corridor.
SP Setia is looking at offering starter homes starting from RM300,000 onwards. The affordable houses that include typical link houses between RM300,000 to RM350,000 should have a strong demand, given the severe shortage of such houses in Klang Valley.
The target launch should be in the next 18 to 24 months as it will take them this time frame for planning and approvals. This project will generate a net profit of RM630mil based on an 18% net margin, over an estimated 8-year development period.
Analysts are generally positive on the proposed land deal given the low land cost and its sizeable land area which is hard to come by these days. With an estimated GDV of RM3.5bil, SP Setia’s plan to replicate its highly successful Setia Alam township is a viable proposition.
[ Sources from Star Property & The Edge Property ]