24 June 2014

IOI Prop plans RM16b launches

  24 June 2014

DEVELOPMENTS IN 3 YEARS: 70pc of new projects will be priced below RM1m

IOI Properties Group Bhd is preparing to launch RM16 billion worth of new projects over the next three years as the company is bullish about the local property market.

Chief executive officer Lee Yeow Seng said the company is scaling up launches to gain more confidence from buyers and investors.

“The local property market has taken some correction this year on the back of strong growth in the past two years and due to recent cooling measures by the government to curb speculation. It is good that the market is taking a breather.

“Once buyers digest all these, including the Goods and Services Tax next year, we will see another rebound in 2015 due to limited supply in the last one year,” Lee said in an interview, here, recently.

He said 70 per cent of the new projects will be priced below RM1 million.

These are properties will be located within existing projects and new developments in the Klang Valley, Johor, Singapore and China.

According to Lee, IOI Properties, which has a market capitalisation of RM8.5 billion, will have between 40 and 50 projects by 2017.

The company has 20 ongoing projects currently, with a gross development value of RM5 billion.

By year-end, it plans to launch two new townships in the Klang Valley worth a combined RM4 billion.

They are Bandar Puteri Warisan in Kota Warisan, located nearby the Kuala Lumpur International Airport 2 in Sepang, and Bandar Puteri Bangi.

Meanwhile, on house prices, Lee expects them to continue to increase due to an uptrend in the prices of oil and building materials.

“We are now seeing the effects of subsidy rationalisation. Input cost is going up, and definitely, inflation will set in. With all these taking place, house prices will surely rise,” he added.

~ By BUSINESS TIMES

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