by S BIRRUNTHA/ pic by TMR
IOI Properties Group Bhd is targeting RM2 billion in sales from its various developments and new launches for the financial year ending June 30, 2020 (FY20), as the property market recovers from the overhang situation.
CEO Lee Yeow Seng said the target composition will be 50% coming from Malaysia and another 50% from its business overseas.
“We are now seeing a pickup in buyer interest and sales. For the unsold properties, we continue to look into driving sales by appointing more sales agents and coming out with incentives such as rent to own schemes,” he said in Putrajaya yesterday.
The Home Ownership Campaign (HOC), he added, has helped the company lower its unsold inventory.
The HOC 2019, launched by the government, is aimed to help clear unsold residential property across the country.
According to a report by the National Property Information Centre, there is an overhang in the residential property market, especially in the price range of RM300,000 and below.
Lee added that IOI Properties will continue to look at the affordable housing market next year to encourage more buyers to pick up its new launches.
“We will continue with affordable housing because that’s where the market is right now. The margins will be slightly lower, but we are trying to launch products with a reasonable price.
“We do foresee a lower profit margin, maybe about 2% to 3% drop, but we hope the revenue will increase. As of now, we are looking at more than 5% growth in revenue, so we think it can offset the lower profit margin,” he said.
Lee said the government made the right move to lower down the foreign buyer threshold to RM600,000 in Budget 2020.
“Individual state will have to review their own policies and follow the recommendation by the federal government,” he said.
In September, IOI Properties launched its new development, Alanis at Warisan Puteri in Sepang. The project has a gross development value of RM412 million.
According to Lee, the final block (Block A) of the development will be released soon as the other released blocks (Block B, C and D) gathered a good response on presales day.
He said Alanis has locked in good sales and over 400 units have been taken up. Block C saw a 90% take-up rate at the launch in Sept 22.
The serviced apartment project comprises four 32to 35-storey towers with a total 1,255 units on offer.
IOI Properties currently has several developments in Selangor, Penang, Negri Sembilan and Johor, and projects in China and Singapore.
Its property investment portfolios include shopping mall, hotel, leisure and commercial office properties.