Gamuda Land's High Park Suites in Petaling Jaya, Selangor, is expected to sell RM100 million in new properties in the fiscal year 2022 (FY22F), up from RM70 million the previous year.
KAF Research estimates a soft take-up rate of 55 per cent, with a remaining gross development value (GDV) of RM350 million compared to the initial RM633 million.
"Apart from the expiry of the country's Home Ownership Campaign (HOC) and rising interest rates, we attribute its sub-normal performance to the numerous supply of high-rise projects that are cluttered along the matured Kelana Jaya neighbourhood. They include WCT Holding's Sapphire Residences, with indicative selling prices of RM584 per square foot (psf) to RM793 psf," the firm said.
Upcoming developments include Sunway's Sunway Serene (RM618 psf to RM960 psf), which is due for completion in the fourth quarter of this year; The Arcuz by Exsim Group (RM721 psf to RM946 psf), with expected completion in 2023; and Glomac Bhd's Plaza @ Kelana Jaya (priced from RM388,000), to be completed this year.
Having said that, High Park Suites accounts for less than one per cent of Gamuda's remaining GDV, which is estimated to be RM56 billion, according to the research firm.
Gamuda's new property sales increased by 23 per cent year on year to RM2.7 billion in the first nine months of the fiscal year 2022 (9MFY22), compared to RM5.4 billion in unbilled sales.
"This puts the group on track to achieve its full-year target of RM4 billion. Above all, Gamuda's domestic property sales have closed the gap with foreign sales, with a 47:53 split. Overall domestic property sales were up RM1.3 billion (+ 47 per cent), with its three townships, Gamuda Gardens, Gamuda Cove, and twentyfive.7, collectively accounting for nearly two-thirds," it said.
KAF Research maintains its Buy recommendation on Gamuda Bhd, with a TP (target price) of RM4.30 unchanged (25 per cent discount to NAV).
High Park Suites is a serviced apartment project on one of the last few plots of land in Kelana Jaya that has been vacant for many years.
Gamuda began the project's first phase in 2015. The entire project was completed in 2020.
High Park Suites is made up of two towers and has a total of 1,024 serviced apartment units. Block A is 33 stories tall, while Block B has 29 floors.
The freehold development is available in four different layouts: Type A Studio (452 sf), Type B Suites (603 sf), Type C Duplex (743 sf), and Type D Duplex (840 sf).
It has a 3.4-acre green-scape podium with fitness facilities such as a 50-meter Olympic-length swimming pool, an Aqua Gym, a poolside cabana, a putting green, and a 1km jogging track.
According to iProperty, the indicative selling prices for High Park Suites' units range from RM405,000 to RM79,000 (RM738 psf to RM959 psf).
The corresponding monthly rental rates are RM1,200 to RM2,200 (RM2.69 psf to RM4.45 psf).
The project has an easy ownership package with Maybank HouzKEY to assist its home buyers. The package includes a zero per cent down payment, low monthly payments, and 100 per cent loan financing.
