Reported in nst.com.my, the Chief Executive Officer of OSK Property said, “We are going through a very challenging economic cycle. There will be a time when the market is robust and there will be a time when the market is challenging.” He said the target of RM1 billion in sales this year will be tough. I think the CEO is quite frank in his assessment. Seriously, many developers are today struggling to sell their developments. Many times, it may not be a wrong product but just an unfortunate timing currently. This, coupled with all the amazing negative sentiment comments meant the market is worse than it should be.
Ong also said that OSK Property would focus on all their projects at hand. Earlier this year, OSK Property Holdings Bhd and the property arm of PJ Development Holdings merged to become OSK Property. On an overall basis, the group has projects with gross development value (GDV) of RM18 billion across Peninsular Malaysia and in Melbourne, Australia. OSK property had no projects in East Malaysia and has no plans to venture there. Some of their projects this year include TimurBay Seafront Residence in Kuantan; Luminari in Harbour Place, Butterworth; a bungalow development in Sungai Petani and the second phase of Windmill Upon Hills in Genting Permai, Pahang.
Besides that, they have also received approval from the state government of Victoria for the integrated property project in Kavanagh Street in Melbourne. The Australian project is a huge one with a GDV of A$3 billion (RM9.17 billion) and would be completed in eight years. It consists of four residential towers, an office block, a hotel and a retail podium with a total floor space of 411,000 square metres. He is also positive about the recent Overnight Policy Rate (OPR) reduction. He said, “Lower interest rates will help buyers. It also has a direct impact on us as borrowings become cheaper.” Happy reading.
written on 1 Aug 2016
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