Property Sector To Post Stable Outlook For 2017 - LBS Bina

Last update: 31/05/2017PETALING JAYA, May 31 (Bernama) -- Malaysia's property sector is expected to post a stable outlook this year, driven by the better gross domestic product (GDP) which is forecast to grow between 4.3 to 4.8 per cent for 2017.

LBS Bina Group Bhd Managing Director Tan Sri Lim Hock San said the strong GDP growth of 5.6 per cent in the first quarter of this year signalled that the economy is currently in a better position.

"When market sentiment improves, people start purchasing houses and therefore, boost the property sector," he told a media briefing after the company's annual general meeting here, today.

Lim said affordable housing would continue to draw strong demand in the residential segment for the next two to three years.

On the company's projects, he said six new projects with a total gross development value (GDV) of RM1.88 billion are expected to be launched by year-end.

The projects include a development comprising double-storey houses at Golden Hills, Cameron Highlands, a serviced apartment in Bandar Saujana Putra, Puchong and a link-house venture in Desiran Bayu, Puchong.

Lim said with the upcoming new launches, coupled with the current sales of RM413 million registered thus far, the sales target of RM1.5 billion for this year is achievable.

On the company's 17 ongoing projects with a GDV of RM3.2 billion, he said up to 72 per cent of the projects valued at RM2.34 billion had been sold.

Meanwhile, Lim revealed that the company 's undeveloped land bank stood at 1586.37 hectares with an estimated GDV of RM30.6 billion.

The land is located in the Klang Valley, Johor, Ipoh, Cameron Highlands, Kota Kinabalu and Gotong Jaya (Genting Highlands).

On the Zhuhai International Circuit (ZIC) development in China, Lim said LBS is upbeat towards securing the development approval from the city government in the next few months.

Aside from the motor racing circuit, Lim said once approval is secured, the company would develop a theme park, factory outlets and a series of commercial activities at the site.

LBS inked a deal with Zhuhai Jiuzhou Group Holdings Ltd for the upgrading of the ZIC in 2015.