Managing director Datuk Lim Hock San said although 2012 will be a challenging year globally, the company believes that the demand for property in Malaysia will remain strong as prices continue to increase.
"Housing prices will continue to go up and it's not because we property developers are greedy. Land cost has gone up. So has labour wages, building material and fuel costs. In fact, financing cost has also gone up," he said.
Following the inflationary effects on the housing market, Lim is hopeful of his marketing team achieving RM800 million in sales this year. This would be 20 per cent more than last year's RM663 million.
LBS Bina plans to launch 16 projects with gross development value totalling RM1.5 billion. There will also be 21 ongoing projects worth another RM665 million.
"Currently, we have some 920ha landbank with an estimated gross development value of RM9.1 billion," he told reporters after the company's shareholders' meeting here yesterday.
The housing projects are spread across D'Island Residence in Puchong, Bandar Saujana Putra in Putrajaya, Taman Golden Hills in Cameron Highlands and Bandar Putera Indah in Batu Pahat.
Lim said houses priced over RM233,000 at Bandar Saujana Putra should generate about 36 per cent of its sales target.
"The D'Island Residence, which offers resort-style homes valued at RM1 million and above, is expected to contribute 30 per cent, while non-residential developments an estimated 14 per cent in sales," he said.
At the shareholders' meeting, the company announced a share buy-back of up to 10 per cent of its own issued and paid-up share capital.
By Business Times
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