LBS Bina targets 2019 sales of RM1.5 billion

KUALA LUMPUR: Property developer, LBS Bina Group Bhd aims to secure sales of RM1.5 billion for this year, slightly lower than the RM1.526 billion achieved in 2018, said group managing director Tan Sri Lim Hock San.

He said the target was realistic given the softer industry landscape, coupled with persistently cautious market sentiment and slower economic growth.

“The first six months (the property landscape in 2019) will be tough, but the next six we hope, will be better, “he told a media briefing on the company’s outlook here yesterday.

Lim said three major projects to be launched in the Klang Valley, namely Kita@Cybersouth township, LBS Alam Perdana township and Residensi Bintang Bukit Jalil, would contribute significantly of up to RM1.2 billion to the total sales target.

These three projects are estimated to be worth RM1.61 billion in gross development value (GDV).

“We intend to sell 90 per cent of the projects. If not, there would be a lot of unsold properties,” he added.

Besides the Klang Valley, LBS Bina will also launch a doublestorey terrace housing project, Laman Bayu in Bandar Putera Indah, Batu Pahat, Johor and single-storey clusters in Taman Kinding Flora, Chemor, Perak.

“There is still strong underlying demand for quality and affordable units.

“Our strategy to focus on more affordable units within self-sustaining and matured townships, with good designs, amenities and easy accessibility, continues to be well received by the market.It has helped us ride through the challenging market conditions,” Lim said.

Commenting on the 2018 sales performance, Lim said it was a very tough and a challenging year amid uncertain market sentiment before the 14th General Elections, the US-China trade war, volatility in the Brent crude price, a weaker ringgit versus the greenback, lower third quarter gross domestic product results and softer equity market.

Nevertheless, the company managed to rake in RM1.5 billion sales against RM1.4 billion achieved in 2017.

Lim said the company had initially sold properties of about RM3 billion, but 50 per cent of the sales was cancelled due to Bank Negara Malaysia’s stringent housing loan requirements.

“I expect the same problem (cancellations) to remain this year,” he added.

As at Dec 31, 2018, LBS Bina’s unbilled sales stood at RM1.745 billion which can sustain the company for the next two years, while the total land bank was at 1,630 hectares. — Bernama