KUALA LUMPUR: Property developer LBS Bina Group Bhd has set a sales target of RM1.5 billion for 2019 as the company will launch new projects with an estimated gross development value (GDV) of RM1.82 billion this year.
Managing director Tan Sri Lim Hock San (pix) told a media briefing last Friday that the group is confident of sustaining its RM1.5 billion sales target this year driven by the right product offerings and new launches mainly in the Klang Valley.
Last year, the group’s total sales up 7% to RM1.53 billion from RM1.43 billion in 2017, marking the fourth consecutive year of improved results with a strong 25% compounded annual growth rate (CAGR) from 2014 to 2018.
Lim said this is despite the group losing about 50% of the RM3 billion bookings made for its properties last year as most purchasers could not get loans due to stringent lending guidelines by the financial institutions, as well as challenging market environment.
This year, Lim said the group’s strategy is to focus on providing products with different prices, ranging from RM300,000 to RM600,000 per unit to cater to buyers with different income levels.
The projects include the LBS Alam Perdana township in Puncak Alam, Kita @ Cybersouth township in Dengkil and Residensi Bintang Bukit Jalil condominium project which are expected to contribute about RM1.2 billion to its overall sales target this year.
Currently, Lim said the group has 17 ongoing projects with a combined GDV of RM3.7 billion.
The group’s other ongoing projects include double-storey terrace houses project in Bandar Putera Indah in Batu Pahat, Bandar Saujana Putra D’ Island in Puchong and Cameron Golden Hills project in Pahang.
“There is still strong underlying demand for quality and affordable units. Our strategy is to focus on more affordable units within self-sustaining and matured townships, with good designs, amenities, and easy accessibility... where it continues to be well received by the market and has helped us ride through the challenging market conditions.
“We have a good track record in providing strong product offerings which meet the needs of home buyers, at the right time, and more importantly, at the right price range,” he added, noting the group aims to hand over RM2 billion worth of properties this year.
On its prospects, Lim said the group expects a subdued property market outlook this year due to persistently cautious market sentiment and a slower global economic growth.
Nevertheless, Lim said the group remains optimistic on its growth prospects with the group’s total unbilled sales standing at RM1.75 billion as at Dec 31, 2018.
“The first six months of 2019 will be tough (for the industry), but for the next six months we expect that it will be better. Hopefully the new government can do something to stimulate the economy,” he added.