LBS Bina Group Managing Director Tan Sri Lim Hock San believes that Malaysia’s real estate sector would be driven by the sale of affordable houses over next three years or more, reported The Edge.
“I think for (at least) the next two to three years, (low-cost) properties will sustain the property market as long as the economy continues to grow,” he said after the developer’s extraordinary general meeting held in Kuala Lumpur on Thursday (15 June).
“At an average gross domestic product (GDP) growth rate of about five percent to six percent per annum, the property market will be sustained.”
Nevertheless, the expansion of 5.6 percent in Q1 2017 is already a good sign that the country’s economy would continue to flourish this year.
Meanwhile, Lim pointed out that low-cost residential properties nowadays typically cost up to half a million ringgit. “The prices of affordable units depend a lot on the location of the property, but it can generally be priced around RM500,000.”
Queried on the market’s outlook, he explained that it’s not easy to forecast what will happen to the real estate sector after three years.
At present, LBS Bina Group owns a total of 3,920 acres of undeveloped land in the country, and the company revealed that it is looking for potential partners to jointly develop these assets.
As of noon yesterday, share prices of LBS Bina slightly declined by 0.49 percent or 1 sen to RM2.03, meaning the company has a valuation of RM1.37 billion.
Among affordable projects around Malaysia are:
1. Sutera@Warisan Puteri 2 Seremban
Radin Ghazali, Content Writer at PropertyGuru, edited this story. To contact her about this or other stories email radin@propertyguru.com.my
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