‘SCALING BACK ON LAUNCHES’
Developer revises targets to RM780m from RM1.06b due to challenging market
GLOMAC Bhd has revised downwards its property launches to RM780 million in the current year ending April 2019 from an initial target of RM1.06 billion, due to the challenging real estate market.
“We’re deferring certain property launches to the next financial year. So, this year ending April 2019, we’re targeting property launches of RM780 million,” said group managing director and chief executive officer Datuk Seri FD Iskandar.
He said the upcoming launches would remain in the mid-market and affordable segments targeted at millennial buyers.
“We target property sales of between 75 and 80 per cent of the new launches. About 65 per cent of the launches will be priced at RM500,000 and below,” said FD Iskandar after a shareholders’ meeting, here, yesterday.
On Glomac’s wishlist for the upcoming 2019 Budget, FD Iskandar expressed hope that the new government would introduce measures to reduce cost of doing business and not impose additional taxes.
The government is gathering feedback from the business community as it prepares to table the budget in Parliament on November 2.
“We hope the Finance Ministry will consider relaxing bank lending guidelines, such as stamp duty exemptions and lower housing loan repayment rates for firsttime home buyers in the affordable segment.
“It has been challenging for the property industry in Malaysia for the past few years, especially with the loan eligibility issues.
“This, he explained, can be carried out with a government-driven ‘Home Ownership Campaign’ which involves bankers, lawyers and developers, especially for affordable homes priced below RM500,000.
“Back in 1998 and 1999, the government had initiated ‘Home Ownership Campaign’ and it helped reduce unsold stocks greatly in the market,” said FD Iskandar.