DESPITE challenges in the local property market, stringent lending guidelines by banks and the wait-and-see approach observed by house buyers today, LBS Bina Group Bhd is upbeat on prospects and will be launching RM1.82 billion worth of new projects this year.
Managing director Tan Sri Lim Hock San has also set a sales target of RM1.5 billion for this year, which is about RM100 million more than 2014 and around the same as last year.
Lim said LBS is confident of sustaining theRM1.5 billion sales target this year driven by the right product offerings and new launches that will take place mainly in Klang Valley.
These include the LBS Alam Perdana township in Puncak Alam, Kita @ Cybersouth township in Dengkil and Residensi Bintang Bukit Jalil condominium.
Lim said these projects are expected to contribute aboutRM1.2 billion to the company’s overall sales target this year.
He added that LBS will continue to build affordable houses, middle-cost housing that caters to market demand.
“Affordable houses priced below RM500,000 are the most popular as 63 per cent of the company’s sales were from this segment, while 36 per cent came from the RM500,000 to RM1 million segment and only one percent of revenue came from sales of properties priced RM1 million and above,” Lim said during the company’s 2019 outlook briefing recently.
LBS has shown four consecutive years of improved results with a strong 25 per cent compounded annual growth rate from 2014 to last year.
As at December 31 last year, LBS’ total unbilled sales stood at RM1.75 billion.
“LBS has once again achieved positive growth despite a challenging market environment. Achieving improved results over four consecutive years validates the strategy we have adopted. 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,” Lim said.
Last year, the company’s sales were mainly derived from new project launches in LBS Alam Perdana in Puncak Alam, Residensi Bintang Bukit Jalil, Zenopy Residences in Seri Kembangan and Kita @ Cybersouth in Dengkil.
Ongoing developments in township projects like Bandar Saujana Putra, D’ Island Residence in Puchong, Bandar Putera Indah in Batu Pahat and Cameron Golden Hills in Cameron Highlands also contributed positively to company’s earnings.
Lim said that moving into 2019, despite a subdued property market outlook due to persistently cautious market sentiment and a slower global economic growth, 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 and has helped us ride through the challenging market conditions,” said Lim.
LBS will be kept busy this year as it is also handing over 1,798 houses worth RM1.14 billion. It will also be completing RM2 billion worth of properties this year, he said.