PKNS aiming for RM690m GDV this year


THE Selangor State Development Corp (PKNS) is eyeing to develop 12 new projects this year with an estimated gross development value (GDV) of RM690 million.

It has also set a target to achieve RM584 million in residential sales for 2022 as it sees opportunity for growth with the right mix of developments to match emerging demand.

PKNS CEO Datuk Mahmud Abbas said the sales target does seem like a “tough” figure to achieve but the developer is confident to meet the target in light of the country’s economic recovery post-pandemic.

“We are confident the economy is better this year and things should be much more improved after Chinese New Year.

“It is not easy to sell nearly RM500 million worth of properties but with the strategies we put in, we could make it. We are not just selling houses, we are selling a lifestyle where buyers get better value than any other properties in Kuala Lumpur or Shah Alam,” he said during PKNS performance outlook media briefing at its headquarters in Shah Alam, Selangor, yesterday.

If including industrial properties and joint ventures income, PKNS aims to achieve between RM1.7 billion and RM1.8 billion in sales this year.

Mahmud said PKNS is also putting greater focus into environmental, social and governance elements in its development to ensure sustainability.

Among its efforts include planting more trees at its development areas such as Bernam Jaya and Antara Gapi.

“We would like to see developments that are green and for future projects, we are looking to provide customers with renewable energy equipment as a part of our strategy,” he said.

As at Jan 21, 2022, PKNS has a landbank of 2,417ha, 43% of which is for commercial developments, 13% residential and 43% mix–developments with the largest parcels around economic gateways in Klang, Bernam Jaya and Hulu Langat.

For the financial year ended Dec 31, 2021, PKNS recorded RM900 million from the sales of residential, commercial property and land against the backdrop of the Covid-19 pandemic and challenging economic conditions.

Its portfolio comprises a mix of affordable, mid-range to high-end residential developments, priced from RM400,000 to RM1 million.

Due to the increase in prices of building materials, Mahmud said there is a slight increase in PKNS’ products costs and part of it is absorbed in its margin.

“We help to reduce the cost for consumers by making the property designs more efficient and simpler to reduce construction time on a project and thus, reduce the overall construction cost.

“If we absorb all of it, we may have a tough time but we do absorb some of it and others are passed into our selling price,” he added.

Last month, PKNS unveiled its newly built project, the Rafflesia 2 in Bernam Jaya which targets professionals and newly married couples as its potential buyers.

The project encompasses a two-storey terrace house consisting of 87 units with an estimated GDV of RM37 million.

For the project, PKNS offers three types of layouts with build dimensions starting from 1,615 sq ft with a starting price of RM411,300 per unit with connectivity to two main roads namely Kuala Lumpur-Ipoh federal road and the North-South Expressway.