S P Setia: RM1.19 billlion properties sold in Q1. Positive.

How do we know if the property market is healthy or not doing well?

Results of listed property developers always tell a much better story than that friend who told you that the market is about to crash. Maybe he does not have any property. Or that friend who told you that if you do not buy now, you will lose the opportunity of a life time. Most probably, he has some properties to share with you… So, instead of listening to people, we could also keep ourselves updated with the results of property developers instead.

Article in themalaysianreserve.com S P Setia Bhd has recorded a strong sales performance of RM1.19 billion for the first quarter ended March 31, 2021. 78% of this sales performance was contributed by local projects (Yes… Malaysia) and remaining were by international projects mainly Daintree Residence in Singapore.

For local sales, it came from Central region at RM705 million, followed by the contribution from the Southern region at RM148 million while another RM74 million was from the Northern region. S P Setia president and CEO Datuk Khor Chap Jen said, “In addition, we had also launched a total Gross Development Value (GDV) of RM525 million landed properties. They comprise mostly of  double-storey terrace and, or semi-detached homes during this period, and the responses were overwhelming in some of our flagships developments.” Do proceed to read the full article here: Article in themalaysianreserve.com

Good results show we have financially healthy buyers

Someone has to buy in order for S P Setia to sell RM705 million in 90 days yeah. These buyers would have to ensure that they could show their ability to pay, else the banks would not lend to them too. Just look at below for the typical approval rates and we would know that it’s not just whether buyers want to buy but also whether banks want to lend too. At the moment, we can conclude both are still happening; buyers buying and banks lending. Below image is from housingwatch.my

home loan approval

What are their projects which we could buy?

Please do google for their website to know all about their projects yeah. I am very sure all of it would be there. Always remember that due diligence is always needed because we do not buy a property from a property developer because they sold many properties. We buy a property because that property fits the purpose we have in buying a property. It could be for own stay, it could be for investment or it could be just for fun (obviously, this is a different level of buyer). When the reason is right, then the decision to buy will be alright.

As for whether it’s good to buy S P Setia share, well this is their current numbers:

Info from i3investor.com. It’s considered a liquid stock. If we look at the target price, it does seem that it’s current price level is already at what was anticipated.

Happy following results of property developers to understand the property market.

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