KUALA LUMPUR, Aug 7 – Property developer, UEM Sunrise Bhd, is positive of the market demand this year despite the weakening of the ringgit.
At 5pm today, the local currency fell to 3.9220 against the US dollar from 3.9005 on Thursday.
Its Chief Operating Officer, Raymond Cheah, said currently, the market was at a moderate level as buyers stayed on the sidelines and maintained a cautious approach due to lower ringgit.
“As a property developer, to build houses or undertake infrastructure projects during this time will benefit us in terms of building material costs which will be cheaper,” he told Bernama recently.
Cheah earlier unveiled the company’s development project, ‘Gerbang Nusajaya – Gateway to Iskandar Malaysia’ on the sidelines of the Government-linked Company Transformation (GLCT) Programme Graduation Ceremony and GLC Open Day 2015.
He said for the last two years, the building material costs kept increasing and they would continue to increase in the future and this would limit the company’s property project development.
On property prices if the ringgit were to weaken further, he said, they would not decline as the land values would also go up every year.
“If you track the prices for the past 15 years, whether in the 80s or 90s, they would never go down. They may fall slightly and then rise again. This situation will be the same going forward,” he said.
On the company’s Gerbang Nusajaya projects, Cheah said, the first phase of development, Nusajaya Tech Park (210.03 hectares of integrated eco-friendly technology park), would be completed in the fourth quarter of this year while the second phase would be warehouse factories.
The Nusajaya Tech Park, a 40:60 joint venture between UEM Sunrise and Ascendas Group from Singapore, has an estimated gross development value (GDV) of RM3.7 billion.
He said overall development would be over 25 years and would create more than 200,000 direct and indirect jobs.
“We plan to develop it on phase-by-phase basis to ensure that all developments are aligned with the performance of the local and external economies so that the market will be able to absorb the offerings,” he said.
Gerbang Nusajaya also comprises developments such as Gerbang Nusantara (affordable housing), FASTrack Iskandar (a 121.41-ha motorsports city), Signature Residences as well as lifestyle and retail parks, campus offices and residential precincts with GDV of RM42 billion.
The development is located 5km from the Tuas Checkpoint via the Malaysia-Singapore Second Link with easy access to the Senai International Airport and Singapore’s Changi International Airport.