PETALING JAYA: Property developer LBS Bina Bhd says demand for landed properties is still strong and with that view, the company plans to launch more such properties next year.
Managing director Tan Sri Lim Hock San said that despite the challenging property outlook, demand is still good for landed units and projects at strategic locations.
“The landed property sales are still the best at the moment and we may roll out more landed properties next year. Of course, right now we are still studying the market,” he said after the company’s AGM.
Lim said LBS had the muscle to launch more landed properties as it is sitting on 2,500 acres of landbank that were mostly bought with reasonable price.
“We are lucky that our cost of landbank is not expensive. If you have a very high cost of landbank, you cannot sell your house at between RM500,000 and RM600,000,” he said.
Lim noted that it was a tough market for the high-end properties, and even for medium-priced properties, good location is very important.
Most of LBS’s landbank is located in the Klang Valley, Pahang and Johor.
Lim said athough the company had so far recorded a sale of about RM320mil, he is confident that LBS would be able to meet its RM1.2bil sales target for this year, especially with the company sitting on unbilled sales of about RM1.11bil as at May 31.
For the first quarter ended March 31, LBS reported a net profit of RM16.86mil, a 45% increase from last year. Revenue for the first quarter was RM200.47mil, which is about 53% higher than in the same quarter last year.
Lim said that for this year, LBS is targeting to launch new projects with a total gross development value (GDV) of around RM1.5bil.
The projects include its BSP 21 (in Bandar Saujana Putra) and Desiran Bayu (in Puchong) which have a GDV of RM815mil and RM375mil, respectively.
BSP 21 comprises 1,437 units of high-rise residential units. Meanwhile, the Desiran Bayu development will comprise 598 units of double-storey terrace and semi-detached houses.
“For BSP 21, we have 10 blocks. About 94% of the first five blocks have already been sold. The remaining five blocks will be launched this week,” Lim said.
He said LBS is expected to launch the Desiran Bayu project in Puchong in July.
On LBS’ 51%-owned company ML Global Bhd, Lim said LBS plans to tender for government-related jobs through the unit.
He said LBS would maintain ML Global as a construction company. ML Global is currently involved in construction activities and the production of roof tiles.