One developer is optimistic about 2019 despite many people being negative about the current state of the property market. LBS Bina Group Bhd will be launching RM1.82 billion worth of projects this year. Its 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 the target is achievable with 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. He added that LBS will continue to build affordable houses, middle-cost housing that caters to market demand. Article in NST here.
Lim said, “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.” He also said, “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.” Article in NST here.
When we look at the sales of LBS’s projects, we could see very clearly that demand continues to be strong for the more affordable projects, especially those which are below RM500,000. These are projects which will target households with two working professionals with a minimum combined net income of RM6,000 or higher. (Mortgage of RM2060 is around 35% of the monthly income) Image from calculator.com.my on left. There are definitely upgraders too demanding for better homes and this is where the sales of products between RM500,000 and above comes in. At the moment, I personally think RM800,000 is pretty maximum and we need a breather for the people’s income to rise higher first. Happy following.
written on 13 Jan 2019
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