S P Setia: RM3.89 billion sales for 9 months 2023 is reflective of the market?

S P Setia: RM3,89 billion sales for 9 months 2023 is reflective of the market?

Property developer results would be reflective of the market too

If people say the property market is doing well BUT all the property developers are showing negative results, I wonder what is really happening. Meanwhile if people say the property market is bad but all the property developers are reporting good numbers, I also wonder what’s really happening too. Haha. Anyway, just one of the signs yeah. For actual numbers look for the transaction numbers instead which is published by NAPIC (click to read on transactions, launches and overhang data)

Now we have one major developer with one of the largest landbanks (if not the largest) here in Malaysia announcing its results.

Article in thestar.com.my   S P Setia Bhd secured total sales of RM3.89bil for the nine months ended Sept 30, 2023, with local projects contributing RM3.37bil or approximately 87% of total sales.

In a statement, the property developer said the remaining RM523mil or approximately 13%, were generated from international sales.

S P Setia holds an effective remaining land bank of 5,549 acres with an estimated gross development value of RM113.11bil.

“With 44 ongoing projects and unbilled sales of RM6.76bil as of Sept 30, 2023, the group demonstrates positive earnings visibility in the short to mid-term, despite the challenging economic conditions and market headwinds.” Please do read the article in full with a lot more details here: Article in thestar.com.my

44 ongoing projects is a good sign too

Boutique developers may choose to focus on just a few developments due to resources limitations. 44 is a good number of ongoing developments. Just need to watch the sales of all these projects. We must also always note that huge land banks do not mean anything unless they are developing them. Selling is one way to monetize it but developing it would be the reason for the landbank in the first place yeah. Recently, it was highlighted that Kwasa Damansara was not doing well. It has a huge landbank but it is not developing it any any rate close to what it was supposed to be. Article in malaymail.com here.

Happy reading.

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