The developer is confident in realising the target on the back of a stable outlook in other domestic developments
by FARA AISYAH / pic by ARIF KARTONO
PROPERTY developer LBS Bina Group Bhd has set a sales target of RM1.6 billion for 2020, following its RM1.63 billion sales achievement last year.
LBS group MD Tan Sri Lim Hock San said the developer is confident in realising the target on the back of a stable outlook in other domestic developments, which is expected to support buyers’ confidence.
“The improvement in palm oil prices and expectations of another Overnight Policy Rate (OPR) reduction will give people the confidence to buy houses.
“The OPR cut in May last year gave people the confidence to buy houses because the interest rate went down, so people pay lower mortgages monthly,” he said at the LBS Bina 2020 Outlook and Market Opportunities briefing in Petaling Jaya yesterday.
Lim said the national Home Ownership Campaign 2019 also contributed to the majority of its sales last year, excluding the sales of commercial properties.
For 2020, LBS plans to launch properties worth RM2.32 billion.
“Six months ago, we started planning the type of houses that will be in trend this year as it keeps changing, and identifying the locations we can and cannot sell.
“There is an oversupply of homes in certain areas, but most LBS products are bought by genuine buyers,” he added.
The developer’s new launches this year will be concentrated in the central region, including new phases of ongoing developments, namely Kita @ Cybersouth and LBS Alam Perdana in Selangor, and MidHills 2 in Pahang.
The other projects to be introduced this year include single-storey link houses in Bandar Putera Indah in Batu Pahat, Johor; semi-detached units and double-storey terrace houses in Cameron Golden Hills, Pahang; and affordable single-storey houses in Chemor, Perak.
The group is sustaining itself well amid the challenging economic and property market environment, Lim added.
Its compounded annual growth rate for the past five years stands at 20.37% as a result of a “people-focused” approach and wider adoption of Industrialised Building System and design optimisation.
As at Dec 31, 2019, LBS’ landbank stood at 3,630 acres (1,469ha) with a future gross development value of RM33 billion.
The group is always on the lookout for landbank, including joint-venture offers, Lim said.
The outlook on the property market for the group this year is also positive, he added.