LBS is more focused in Klang Valley, said Lim
PETALING JAYA: Township developer LBS Bina Group Bhd (LBS), in announcing its 2020 sales target of RM1.6bil, is planning to launch 5,496 units of homes this year.
Eleven new launches, which has an estimated gross development value (GDV) of RM2.32bil, will be built in seven locations, says LBS group managing director, Tan Sri Lim Hock San.
The projects which will be concentrated in the central region are predominantly new phases of on-going developments including KITA @ Cybersouth township, LBS Alam Perdana township and Midhills 2, he said.
The other projects to be unveiled in 2020 included single-storey link houses in Bandar Putera Indah in Batu Pahat; semi-detached units and double-storey terrace houses in Cameron Golden Hills in Cameron Highlands; and affordable single-storey houses in Chemor, Perak.
A total of 53% of the total launches will be priced below RM500,000, he said, adding that 75% of the new launches will be in the Klang Valley, followed by 20% in Pahang, 3% in Johor and the remaining 2% in Perak.
“We are more focused in Klang Valley. We will look at other states depending on the land cost, if the venture is good and whether the market is sustainable. Of course, we will do our affordable range of houses,” he said.
Lim said the new launches would support the increased sales target, which he believed is achievable as LBS exceed their 2019 sales target of RM1.5bil, hitting RM 1.63bil compared to RM1.53bil in 2018.
This is in spite of the challenging market conditions caused by softening consumer sentiments and global trade tensions, he said.
“LBS has continued to focus on quality townships and affordable developments in strategic locations, a segment that remains relatively strong in subdued market sentiment. This focused approach has proven effective, as reflected in LBS’ financial performance.
“LBS is sustaining well amidst a challenging economic and property market environment. We managed to secure a CAGR (compound annual growth rate) of 20.37% for the past five successive years as a result of our ‘people-focused’ approach and wider adoption of Industrialised Building System (IBS) and design optimisation,” Lim explained.
LBS currently has a land bank of 3,630 acres with an estimated GDV of RM33bil.
“As far as where LBS is concerned, we always look to increase our land bank through JVs (joint ventures) or acquire if we have sufficient cash flow,” Lim said.
As part of its 2020 initiative, LBS will be running ‘LBS Fabulous 2020’ campaign to reward homebuyers with exciting and attractive prizes. With the purchase of selected LBS properties, buyers will stand a chance to win prizes with a total worth of RM1mil including a Proton X70.
Lim concluded, “Moderating housing sentiment and tightening lending criteria will carry on this year. But, as the ‘People’s Developer’, LBS will continue to think out-of-the-box, to appeal to the needs of modern homebuyers. We differentiate ourselves through place-making, curating spaces that celebrate inclusive, meaningful living experiences.
