LBS Aims for RM1.5 billion Sales Revenue in 2019
Despite a subdued property market outlook due to persistently cautious market sentiment and a slower global economic growth, LBS Bina Group Berhad (LBS), forecasted its 2019 new property sales target at RM1.5 billion.
In spite of a challenging market environment, LBS group managing director Tan Sri Lim Hock San shared that LBS has achieved in 2018 a 7.1% increase in property sales from RM1.426 billion in 2017. Its sales were mainly derived from new projects launches in LBS Alam Perdana in Puncak Alam, Residensi Bintang Bukit Jalil, Zenopy Residences in Seri Kembangan and Kita @ Cybersouth in Dengkil.
Additionally, ongoing developments in township projects including Bandar Saujana Putra, D’ Island Residence in Puchong, Bandar Putera Indah in Batu Pahat and Cameron Golden Hills in Cameron Highlands, also contributed to LBS sales growth in 2018.
However, Tan Sri Lim also mentioned that the group's property sales have also been heavily affected by banks' stringent loan approval criteria in which the housing loan application rejection rate stood at 50% in 2018 and 45% in 2017.
“We foresee housing loan application rejections to persist this year, expecting a rate of 50% or more,” Tan Sri Lim said recently at a media briefing on LBS' business outlook.
To address the issue pertaining to the high rejection rate on housing loan applications, Tan Sri Lim also announced that LBS are trying to sell houses with pricing around RM300,000 and this will be their focused strategy for the next five years.
“There is still strong underlying demand for quality and affordable units. Our strategy is to focus on more affordable units within self-sustaining and matured townships, enhanced with good designs, amenities and easy accessibility.”
Tan Sri Lim added that properties in this price range have always been well received by the market and has helped developers overcome the challenging market conditions.
As of today, the Group has lined up new projects with an estimated Gross Development Value (GDV) of RM1.82 billion. The property projects to be unveiled in 2019 include double storey terrace houses in LBS Alam Perdana, Residensi Bintang Bukit Jalil condominium, double storey terrace houses in Bandar Putera Indah, Batu Pahat as well as more than 1,000 affordable homes in Kita @ Cybersouth.