KUALA LUMPUR: TA Global Bhd is launching two projects this year, with a total gross development value (GDV) of RM2.9 billion, despite the challenging property market, said its CEO Tiah Joo Kim (pix).
“Nothing has changed really, the market is fairly challenging and still in oversupply at this time. However, we are still confident of our product because our landbank is at very strategic locations and were purchased at prices much lower than market value today,” he said at its AGM today.
Next month, the group will launch the RM507 million Alix Residences in North Kiara. The project, which will take up about five acres, comprises 364 condominium units in two towers to be completed in 2023.
“We are very excited because the location is great. Even from private previews now, we are seeing a lot of interest,” said Tiah.
The second project is TA3&4 in KLCC which will be launched in the fourth quarter this year. Located beside Menara TA One and opposite the Petronas Twin Towers, this project is a mixed use development comprising two towers of 58 and 66 storeys.
Tiah said the GDV for TA3&4 is lower at RM2.4 billion from RM2.6 billion initially, as it has reduced the project cost to make it more accessible to the target market.
Next year, the company will launch a 95-acre landed residential township in Kluang, Johor with a GDV of RM450 million and Ativo Annexe, a 15-acre mixed use development in Bandar Sri Damansara with a GDV of RM3 billion.
TA Global has a total landbank of 708.88 acres in Malaysia, of which 597.79 acres is in the Klang Valley. A total of 144.50 acres in the Klang Valley and Johor are under planning and development with an estimated total GDV of RM15.6 billion. These projects are targeted for sale in 2019 and 2020.
Executive director Kimmy Khoo said it will focus on Malaysia this year as it has completed and sold all its overseas projects. Its unbilled sales stands at RM310 million from Ativo Suites, which was launched in March last year and is 80% sold. The project will be completed in 2021.
Commenting on the overall market, Tiah said interest rates are expected to come down globally and in Malaysia, the recent overnight policy rate cut is expected to make it easier for purchasers to obtain loans for end-financing.
“Purchasers, if they still can afford, they still want to buy if they can get the financing. It’s a much more rational market where the end user will take a longer time to make their decision.”