LBS optimistic about 2017, aims RM1.5b sales

KUALA LUMPUR: LBS Bina Group Bhd, which is aiming for RM1.5 billion sales in 2017, is cautiously optimistic on the Malaysian property market as it lines up 12 new launches with a gross development value of RM2.35 billion this year.
Group managing director Tan Sri Lim Hock San said of the 5,543 units to be launched in 2017, 77% (4,284 units) will consist of affordable homes priced below RM500,000. Its key launches include developments in Bandar Saujana Putra (BSP), Puchong, Kuala Lumpur, Ijok, Dengkil, Cameron Highlands and Batu Pahat. About 92% comprises residential developments and 8% non-residential developments.
“RM1.5 billion (2017 sales target) is achievable, we’re confident. It could be more, depending on the market,” Lim told reporters after a media briefing here yesterday.
While some property developers have reviewed their new launches due to the slowdown in the property market, LBS Bina is maintaining its planned launches based on its capabilities of applying the right strategy, with the right offerings, at the right time. LBS Bina is focused on the range of homes priced at RM500,000 to RM600,000.
“BSP is the best-selling project for LBS Bina contributing most of the group’s sales and profit for the last three years. But now we’re building the Ijok, Dengkil and Kulai zones. We cannot totally depend on BSP,” Lim said, adding that it has 3,532 acres of undeveloped landbank.
He said the group’s 2016 sales of RM1.24 billion surpassed its initial target of RM1.2 billion. About 70% of its sales came from houses priced below RM500,000. About 87% of its developments were delivered within the Klang Valley while the remaining 13% comprised developments in Ipoh, Penang and Johor. Its unbilled sales as at Dec 28, 2016 stood at RM1.48 billion.
Lim is confident the Malaysian property market would make a comeback in the third quarter this year with the influx of Chinese tourists into the country, thanks to China’s One Belt, One Road policy that will boost spending in Malaysia.

He said LBS Bina has land in Kota Kinabalu and Johor Baru, that it plans to develop properties above the RM1 million price tag in the future, targeting the Chinese market. It is studying the feasibility of these projects.
“There’s a possibility that LBS may JV with Chinese investors to develop (the projects). We’re looking at all angles,” said Lim.