By THE STAR
SP Setia Bhd is keen to launch more high-end Duta range of residential projects to tap the growing demand for such residences in the Klang Valley.
According to divisional general manager of investment and business development Wong Tuck Wai, the company is making efforts to further develop the Duta brand of residences into “trophy” houses.
Wong, who heads SP Setia’s Duta range of projects, said since the company ventured into the high-end residential sector through its Duta Nusantara and Duta Tropika projects, it has topped the scale in the luxurious home market.
“Ultra-lavish projects such as the tropical enclaves of Duta Nusantara – the winner of Fiabci Malaysia 2006 best low-rise development award, and the recently handed over Duta Tropika has upped the bar in the super luxurious market.
“They provide home-owners with the ultimate luxury and pampering with resort-styled abodes decked in beautiful and high-quality fittings to fulfil the every heart’s desire,” he said.
Among the general expectations for high-end products are a unique concept, lifestyle living, security, high returns potential and proximity to amenities.
Wong said in the high-end property sector, the buyers are savvy and know exactly what they want.
“Purchasing property can be a very personal choice and different people will have their own preference. From our experience, buyers of Duta Nusantara and Duta Tropika liked the project’s proximity to downtown Kuala Lumpur, educational facilities and a host of modern amenities.
“As for Setia Eco Park, the buyers are taken in by the rich biodiversity of flora and fauna in the project’s lush landscape,” he added.
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Wong Tuck Wai with a model of the Setiahills project in Ampang
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Wong is confident that the Government’s latest initiatives to scrap the real property gains tax and the encouragement of foreign purchasers to invest in the country’s property sector would go a long way to promote sales of high-end residences.
“In tandem with the strong demand outlook for high-end homes, we are keen to develop more niche up-market boutique projects in strategic locations.”
Based on the just released National Property Information Centre (Napic) figures, properties priced above RM500,000 accounted for less than 10% of total residential property transaction last year.
The high-end market yields higher margins, enjoys shorter project turnaround and is seeing burgeoning demand due to the rising income level of prospective purchasers.
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A closer view of a model of the project
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Wong said the confidence in the high-end market prompted SP Setia to embark on the country’s biggest up-scale project – Setia Eco Park in 2005 to tap the opportunities in the growing market.
Over the years, the company has evolved from targeting at the mass market through the Setia brand to the nature-themed Eco and high-end Duta brand.
For the financial year ended Oct 31, 2006, the Duta series of residences made up 15% of the company’s sales of RM1.4bil while 30% was from the Eco range and the balance from the Setia series.
With the latest Duta project, Setiahills Ampang that was launched in January and the upcoming launch of the company’s maiden luxury condominium project next year, contribution from the Duta products to total sales is expected to rise to 20% in the next two years.
SP Setia plans to acquire two parcels of prime land measuring 5.96 acres in the heart of KL city.
It will pave the way for its foray into the luxury condominium market.
The development named Setia Residences will have an expected gross development value of RM500mil.
“The move to introduce a high-end luxury condominium brand is synergistic with our business strategy to tap into the robust demand for such products in the city centre. It is a good opportunity for SP Setia to venture into a quick turnaround project,” Wong said.
