KUALA LUMPUR: Sunway Bhd’s upcoming Chuan Grove residential project in Singapore is expected to deliver a gross development value (GDV) of RM4.3 billion, according to Hong Leong Investment Bank (HLIB Research).
The firm estimates the development could launch at S$2,800 per sq ft or higher – about 10.4 per cent above Chuan Park’s recent pricing – translating into a projected GDV of S$1.31 billion.
“Based on our estimated selling price of S$2,800 psf, the projected GDV could be around S$1.31 billion.
“Market appetite in this location has already been demonstrated by the strong turnout of 5,000 visitors at Chuan Park’s sales gallery on its first preview day, underscoring the latent demand pool.
“The robust performance of Chuan Park reinforces market confidence and feasibility of the upcoming Chuan Grove development,” HLIB Research said in a report.
The government land sale tender for Chuan Grove closed on September 4. A joint venture between Sunway and Sing Holdings was the top bidder, among four others, with an offer of S$623.9 million (or S$1,331 psf), representing a 2.9 per cent premium over the second-highest bid.
The site is expected to be officially awarded to the winning developer within one to two weeks. The Urban Redevelopment Authority (URA) reserves the right to reject the highest or any tender.
Following the award of the tender and approval by the URA, the two parties will establish a joint venture company in
Singapore, with Sing Holdings holding a 65 per cent stake and Sunway the remaining 35 per cent.
HLIB Research expects the first project from Chuan Grove to launch sometime between the second half of 2026 (2H26) and 1H27.
It added that the net profit margin of a private residential project ranges from low to mid teens.
“Assuming a 10 per cent net margin and a four-year recognition timeline, the share of profit per annum is estimated to be around RM37.9 million, likely to be recognised over FY27-30,” it added.
The firm maintained its ‘Buy’ call on the stock with a target price of RM6.
© New Straits Times Press (M) Bhd
