Sunway Property, the property division of Sunway Bhd (KL:SUNWAY), achieved strong growth in 2023, mainly driven by strategic launches, significant land acquisitions and key project completions. It launched RM4.4 billion worth of projects in Malaysia, Singapore and China that year alone.
Sunway Property also completed RM1.29 billion worth of property investment assets, further diversifying its portfolio across retail, education and healthcare. In terms of sales, it achieved RM2.4 billion, surpassing its RM2.3 billion target, and has RM4.1 billion in unbilled sales, ensuring a robust revenue pipeline and future stability.
To support future growth, the developer strategically expanded its land bank with key acquisitions in Malaysia and Singapore last year, such as 245 acres in Kuang, Rawang, for industrial development and 4.06 acres in Tengah, Singapore, for an executive condominium development. Continuing this momentum into 2024, the developer secured 4.95 acres in Tengah for further executive condominium development and 5.8 acres in Tampines, Singapore, for a mixed-use development.
In Johor, the developer continues to make strides in turning the 2,000-acre Sunway City Iskandar Puteri (SCIP) into the next generation of Sunway Cities. Some significant milestones achieved are the expansion of X Park, with Horse X Park and the Catamaran to boost outdoor recreation in SCIP, along with the introduction of a new football field to promote community sports and active lifestyles.
Sunway Property built on this momentum in the first half of 2024, with the property development segment generating RM659.6 million in revenue and RM108.9 million in profit before tax (PBT), representing year-on-year (y-o-y) increases of 8.2% and 51% respectively. These are driven by higher sales and progress billings, profit recognition from private condominium projects in Singapore, as well as recognition of a one-time executive condominium profit in 3Q2024, amounting to S$35.3 million (RM123.7 million).
The property investment segment also performed strongly in 2023, delivering RM462.1 million in revenue and RM155.6 million in PBT, a y-o-y increase of 12.9% and 53.9% respectively.
The following is an email interview with Sunway Property managing director Datin Paduka Sarena Cheah, in which she talks about some of the company’s current projects and business expansion plans.
City & Country: Sunway Property has set a sales target of RM2.6 billion for 2024. Can you provide an update on the progress made so far?
Datin Paduka Sarena Cheah: We are on track to meet our sales target of RM2.6 billion for 2024, having achieved approximately RM1.9 billion as at Sept 30, 2024. Our strategic approach, aligned with current market trends and reinforced by the Sunway ecosystem, continues to drive momentum.
This year, we focused on completing several key property investment assets to further complement our township, as well as strengthen our portfolio across retail, education and healthcare — key pillars that support our growth and align with evolving market needs. Notable completions include the Sunway Medical Centre Tower F, known as the Children’s Health Block, in Sunway City Kuala Lumpur (SCKL), and the Sunway Medical Centre in Kota Damansara, both expanding our healthcare footprint.
Additionally, Phase 1 of Sunway Medical Centre Ipoh is on track for completion by the end of the year. In SCIP, we are set to introduce the 4.5km multi-purpose Sunway Circuit.
Looking ahead, we are progressing well with major projects slated for completion in 2025. These include Sunway Square in SCKL, an RM1.8 billion multipurpose development integrating spaces for arts, commerce, education and business. In SCIP, a fine-dining hub — Sunway Puteri Hills — will further elevate the township’s lifestyle offerings. Additionally, Phase 1 of the 103° Sunway Equalbase logistics hub, which is located in SCIP’s free commercial zone, will be completed by 2025.
We remain focused on delivering high-quality products in prime locations, whether within our established communities or close to transit-oriented developments (TODs), ensuring our developments remain relevant to market needs and to maintain our strong sales momentum. To complement what we’ve built, we are refining and evolving our management model to deliver a truly integrated and holistic service experience.
In June 2024, we expanded our Sunway Property+ (SP+) after-sales services, enhancing our Care+ offering by introducing Handyman services to assist our community with tasks around the house, from air conditioning cleaning to furniture moving and everything in between.
Moreover, our Built-Own-Operate (BOO) model remains a cornerstone of our strategy, allowing us to co-invest and grow alongside the communities we develop.
Please share with us the plan for the recently acquired 17.58-acre land in Taman Taynton, Cheras
The 17.58-acre land in Taman Taynton, which is located next to our ongoing project named Sunway Alishan Residences, offers an exciting opportunity to develop a wellness-centred, mixed-use community that aligns with evolving market trends. It is potentially one of the few large freehold parcels remaining in KL.
Our plan emphasises high-rise living designed for young families and smaller households, while the commercial component will focus on wellness, with lifestyle-oriented retail such as gyms, health food stores and wellness clinics — creating a vibrant hub for healthy living. At the heart of the development is a proposed 2.2-acre park and community hub, surrounded by wellness amenities to enhance residents’ well-being.
Green spaces and wellness facilities for all ages will be central to the development, promoting physical activity, community interaction and social engagement.
To address traffic challenges, we propose constructing a highway flyover with direct access from the Middle Ring Road 2 (MRR2) into and out of the development. This will improve connectivity and reduce congestion, ensuring smoother traffic flow for residents and visitors alike.
Johor is a property hotspot now. Do you plan to expand the company’s footprint down south?
Johor is a crucial part of Malaysia’s growth, and we are committed to expanding our presence in the region. We are actively exploring prime hotspots throughout Johor to enhance our footprint and capitalise on its potential.
We are optimistic about Johor’s property market, driven by key catalysts such as the Johor-Singapore Special Economic Zone (SEZ) and the Rapid Transit System (RTS) Link, both expected to boost cross-border connectivity and economic growth. As we explore new opportunities in Johor, we remain dedicated to enhancing our existing portfolio to meet evolving market demands.
The industrial park in SCIP, 103° Equalbase Sunway, is on track to complete its first phase by the end of 2025, with a full lease-up expected upon completion. The park will drive significant growth over the next decade and create at least 13,000 jobs for Johoreans. As part of a free commercial zone, it will attract high-impact investments, reinforcing SCIP as a regional economic hub.
Meanwhile, SCIP has established itself as a vibrant tourism destination, offering attractions like X Park and Sunway Big Box, Malaysia’s first open-concept retail park. We are also introducing the 4.5km Sunway Circuit and fine-dining hub Sunway Puteri Hills. Moving forward, we plan to introduce a riverside resort — something akin to The Banjaran, which one might call “Banjaran 2.0”, bringing the same luxury wellness experience to the southern region.
For commercial, we are planning to develop a vibrant commercial hub anchored by our education, retail and medical facilities. These developments will be complemented by diverse residential offerings, including the highly successful launch of Sunway Maple, SCIP’s first freehold development, the first phase of which was sold out within two hours, with 80% of the buyers being Malaysians.
What key factors do you believe will drive the next phase of growth for Sunway Property?
Our growth strategy is anchored on the BOO model, which allows us to co-invest in the communities we serve. This model enables us to create innovative, community-centred developments that respond to market needs.
In the Klang Valley, SCKL continues to perform strongly and there’s always something new to look forward to. Our next addition is Sunway Square, featuring the Sir Jeffrey Cheah Performing Arts Centre, which includes a 1,200-seat Proscenium Theatre and a 150-seat Experimental Theatre, alongside expanded university facilities. Complementing these are 300,000 sq ft of new retail space and two Grade A smart office towers. Across from Sunway Square, the latest wing of Sunway Medical Centre will also see the inclusion of two new blocks (Tower E and Tower F). Collectively, these additions are poised to drive significant population growth and activity in SCKL.
In Ipoh, we are excited to have Sunway Medical Centre Ipoh on track to open in February 2025. Alongside the hospital, we are advancing the RM1 billion retail project Sunway Ipoh Mall. With these new additions, we look forward to establishing Sunway City Ipoh as the newest and most vibrant commercial hub in Perak.
The southern region, anchored by our flagship 2,000-acre SCIP, is set to become a major growth driver. Supported by catalysts such as the Johor-Singapore SEZ and the RTS Link, we are accelerating investments and launches in SCIP to meet increasing demand. Despite pandemic challenges, we steadily invested in key components like SJK (C) Cheah Fah School and Wisma Sunway Big Box, both of which are slated for further expansion to serve the growing community.
On the industrial front, we have launched our first free commercial zone in SCIP through a joint venture and secured a data centre operator. Additionally, we are developing a 245-acre industrial park in the Klang Valley. These initiatives will create a managed ecosystem that fosters local industries and drives sustainable economic growth.
Internationally, we continue to explore opportunities in Singapore, including our recent mixed-use development win in Tampines. In China, we are progressing with the final phase of our development in Tianjin. Our investments in the UK — focused on student hostels and government offices — continue to provide stable yields, strengthening our portfolio.
Are there plans to acquire additional land or expand into new states or countries?
As of now, Sunway Property’s total remaining landbank spans 2,365 acres, supporting long-term development over the next 15 years, with an estimated gross development value (GDV) of RM57.9 billion. Malaysia accounts for the majority, with 2,346 acres and a GDV of RM51.9 billion, spread across Johor, the Klang Valley, Penang, and Ipoh. In Singapore, we hold 15 acres of prime land with a GDV of RM5.9 billion. In China, our 3.9-acre parcel in Tianjin Eco-City adds further diversity to our portfolio.
We remain focused on acquiring new land near infrastructure hubs and TODs to ensure sustainable growth. While Malaysia — especially Johor, the Klang Valley and Penang — remains our primary focus, we are also exploring opportunities in Singapore and China.
Internationally, we are assessing re-entry into Cambodia and exploring potential projects in Vietnam. Our student hostel and commercial portfolio in the UK continues to be a valuable asset, but Southeast Asia, including Malaysia and Singapore, will remain our main focus areas.
What is Sunway Property’s long-term vision for the future of property development in Malaysia?
We take pride in being recognised as a master community developer and ecosystem builder, delivering not just products and services but also comprehensive, smart and sustainable ecosystems. Known for this commitment, we continue to strengthen our positioning and brand across key states, aligned with our promise: With You for Generations.
Our strategy is to continue working closely with our Sunway Business Units and leverage the strength and resilience of the growing demand for healthcare services and Asia’s ageing population, embedding these offerings into new developments to create lasting value.
We will maintain a diverse portfolio of developments, including townships, mini-cities and integrated lifestyle hubs, such as our Taman Tayton project — featuring retail spaces on the ground level with residential units above, representing the next generation of integrated developments. These projects will remain strategically located near TODs.
Complementing these efforts is our industrial segment expansion, where we will capitalise on opportunities emerging from the China Plus One strategy. As global companies diversify their supply chains beyond China, Malaysia is well positioned to attract new investments, further enhancing our industrial portfolio.
What is your property market outlook for 2025? What emerging trends in property development do you foresee impacting the industry in the next five years?
In the property market, we remain confident of our growth prospects, supported by strong employment rates, accommodating interest rates and a stable appreciation of the ringgit. The overall outlook is encouraging.
While challenges such as rising construction costs and lengthy approval processes persist, we have learnt to manage these effectively over time. A significant opportunity lies in embracing environmental, social and governance (ESG) factors, enabling us to construct buildings that are more sustainable and efficient, aligning with the expectations of the new generation of consumers.
Substantial infrastructure catalysts for growth in the property market, such as the MRT in the Klang Valley and the RTS and SEZ in Johor, are always good news. These initiatives create new economic corridors and enhance connectivity throughout the region.
In the next five years, the property landscape will be shaped by several key trends, including the rise in demand for integrated living, a heightened awareness of ESG factors among consumers and a significant push towards digital transformation.
We anticipate sustained demand for integrated living environments. Our Sunway Cities are designed as 15-minute cities, ensuring residents have convenient access to essential amenities and services. This design aligns with our strategy to seek out land near new transport hubs while providing essential amenities where people live.
Another notable trend is that consumers are increasingly conscious of ESG factors, favouring green living and healthier habits, including the ownership of electric vehicles (EVs). To align with this trend, we plan to incorporate EV charging stations into our new developments. Furthermore, the newer generation of our projects will focus on wellness-themed designs, catering to the evolving lifestyle preferences of environmentally aware consumers. We will also leverage our property management services to reduce maintenance costs, enhancing the overall sustainability and efficiency of our developments.
Moving forward, we are focusing on digital innovation through three main components — waste reduction, consumer engagement and AI integration. By proactively addressing these trends, Sunway Property is well positioned to lead in the evolving property landscape, delivering sustainable and innovative living solutions for future generations.
