Sales targets are important for the sales people. Setting it too low meant the company is going to fall behind the industry while setting it way too high meant the sales people already gave up even at the beginning. (Yes, I have over 20 years of sales experience but none in a property developer) It’s good to note down the property sales targets of developers at the beginning of the year so that we have something to refer back at the beginning of 2020. Haha. It’s their report cards right. It’s also a good overview of whether the market did well or not. Imagine if all developers’ hit their targets or the other way round… Just a while back, S P Setia announced their launches for 2019 (click to read). Now we have another prominent developer announcing their sales target for 2019.
Article in NST here. UEM Sunrise Bhd Managing director and chief executive officer Anwar Syahrin Abdul Ajib said the target is to hit RM1.2bil sales for 2019. He added that the GDV for the new launches this year would be between RM1.5bil and RM1.6bil. New launches are planned in Kepong, Bangi and Gerbang Nusajaya with smaller size launches. On earnings, Anwar said the company is expected to record a higher or the same level of earnings it had achieved in 2018. His group’s plan to dispose not-core assets was underway and was expected to complete by the second half of 2019. He said, “Our plans to monetise non-core assets is ongoing. We still have pocket of lands that we feel not for us to do, so we want to get other people to come in. If the price is right, we are okay to talk. It will take time. Discussions are always tough. People don’t want to overpay for land. So, we hope we can have something solid around the third or fourth quarter of this year.” Article in NST here.
RM1.2 billion sales per year meant that UEM Sunrise Bhd is in the league of bigger developers in Malaysia. A typical GDV number would be a few hundred million ringgit for smaller sized developers. RM1.2 billion showed that it has a few launches at the same time and has sales contributions from all of them. For comparison purpose, Paramount is aiming at RM1 billion sales target for 2019. Sime Darby Property is aiming at RM2.3 billion for 2019. There are bigger targets too, especially when the sales in FY2018 was already high. S P Setia hit sales of RM5.12 billion in 2018 and Eco World hit sales of over RM6 billion for its local + international projects. By the way, higher sales target does not mean the projects are better than developer’s with smaller sales targets yeah. Please buy objectively based on individual needs. Happy following.
Article written and edited by Charles. News article summarised by Dina Batrisyia.
written on 27 March 2019