PETALING JAYA: LBS Bina Group Bhd is targeting sales of RM1.60 billion in 2020 after achieving sales of RM1.63 billion in 2019, surpassing its sales target of RM1.50 billion.
Group managing director Tan Sri Lim Hock San is confident that the property developer can achieve its target this year against the backdrop of rising commodity prices and lower interest rate.
“I believe with lower interest rate and further interest rate cut expected this year, there will be lower instalments and people can afford (to buy houses),” he told a media briefing to announce LBS’ 2019 sales performance today.
Despite the challenging market sentiment, he said people still buy houses.
“The market is positive. LBS has come out with houses in different locations at prices that people can afford.”
Lim stressed that the property oversupply situation is dependent on location and product. “We don’t have so much overhang. We make sure our houses can sell.”
LBS plans to launch new properties worth RM2.32 billion this year in the Klang Valley (75%), Pahang (20%), Johor (3%) and Perak (2%). The projects are predominantly new phases of ongoing developments including Kita @ Cybersouth township (45%), LBS Alam Perdana township (30%) and Midhills 2 @ Genting Permai (18%).
Other projects to be unveiled in 2020 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, Cameron Highlands; and affordable single-storey houses in Chemor, Perak.
It also plans to push the sales for the remaining RM982 million worth of properties from 18 ongoing projects.
LBS’ 2019 sales is 6.8% higher than its 2018 sales of RM1.58 billion. In 2019, LBS launched 11 projects with a gross development value of RM1.82 billion across five locations. Its two key township projects Kita @ Cybersouth and LBS Alam Perdana were the main sales contributor.
LBS has continued to focus on quality townships and affordable developments in strategic locations, a segment that remains relatively strong in a subdued market sentiment. In 2019, 83% of its sales came from properties below RM500,000 and only 17% were for properties above RM500,000.
Its unbilled sales stood at RM2.24 billion as at Dec 31, 2019, sufficient to provide revenue for the company in the next two to three years.
LBS saw a compound annual growth rate of 20.37% for the past five years as a result of its “people-focused” approach and wider adoption of industrialised building system and design optimisation. It has 3,622 acres of landbank with a future GDV of RM33 billion.
