HOC contributes 70% to Paramount’s property sales in 1H19

by FARA AISYAH/ pic by TMR FILE

PARAMOUNT Corp Bhd’s projects registered under the government’s Home Ownership Campaign (HOC) 2019 have contributed about 70% of total sales in the first half of 2019 (1H19).

The developer made RM310 million worth of property sales in the six- month period.

“Our projects that are registered under the HOC contributed about 70% of our total sales in 1H19.

“The main sales were from our projects in the northern region — including Bukit Banyan in Sungai Petani, Kedah, and Utropolis Batu Kawan in Penang — which together contributed RM150 million in sales,” Paramount Property Development Sdn Bhd CEO Beh Chun Chong (picture) told The Malaysian Reserve at the group’s 1H19 performance briefing in Shah Alam, Selangor, yesterday.

Paramount Property’s projects registered under the HOC include Greenwoods in Salak Tinggi, Sejati Residences in Cyberjaya and Atwater in Petaling Jaya, among others.

“If there is no HOC, it does not mean that our sales will only be 30% of the total. Some of the buyers buy because of the HOC, some of them would want to buy anyway, but they still want to wait for the HOC to save some money,” Paramount Corp CEO Jeffrey Chew said.

“We have to thank the government for initiating the HOC and extending the HOC as well,” he added.

Chew said the company aims to achieve a sales target of RM1 billion this year, banking on the Atwate’’s commercial units which are intended to be sold en bloc, as well as new development launches.

Paramount Property is expected to launch projects worth RM900 million in 2H19, including new developments at Kemuning Idaman in Shah Alam and Berkeley Uptown in Klang.

Kemuning Idaman is an affordable housing project which has a gross development value (GDV) of RM113 million, targeted to be launched in the third quarter of 2019.

Berkeley Uptown’s Phase 1, which consists of serviced apartments with a GDV of RM222 million, is expected to be launched in 1H19.

Other projects include link-houses in Greenwoods with a GDV of RM136 million; Sejati Lakeside in Cyberjaya (RM132 million GDV); Utropolis Batu Kawan’s commercial and serviced apartments Phase 3 (RM222 million GDV); and Bukit Banyan’s terrace houses and bungalows (RM80 million GDV).

As at 1H19, Paramount Property’s unbilled sales rose to RM978 million — a record high for the group.

The group has a total of 132 unsold units worth RM110 million in the period. Commercial projects made up the bulk of the inventory with 95 units worth RM94 million and mainly contributed by its newly-launched Sekitar26 project in Shah Alam with 47 units worth RM62 million.

As for the residential projects, Bukit Banyan contributed the highest inventories with 29 units worth RM6 million.

Paramount Property has 219.8ha of undeveloped land bank with a potential GDV of RM7.7 billion over the next nine years.