L&G to launch RM1.67 bil worth of projects this year

Astoria Ampang, Land & General

KUALA LUMPUR: Despite the forecast of further slowdown in the property market this year, Land & General Bhd (L&G) plans to launch three developments with an estimated total gross development value (GDV) of RM1.67 billion.

“The softening property market will offer L&G an opportunity to increase our land bank as land prices will be more realistic. There will be opportunities for joint ventures with smaller developers or land owners with choice land as the cost of entry into this industry increases.

“L&G will be on the lookout for opportunities as we have the financial strength to sit out the slower market and wait for a better outlook in the future,” L&G managing director Low Gay Teck told The Edge Property via email recently.

The launches are the Astoria serviced apartments in Ampang (GDV: RM860 million); the first phase of landed development, Taman Sena, in Seremban (GDV: RM280 million); and Phase 2 of the Damansara Foresta serviced apartments in Bandar Sri Damansara (GDV: RM530 million).

Astoria Ampang sits on a 5.7-acre land parcel just off Jalan Ampang. The four-tower development consists of 253 units of between 560 sq ft and 1,505 sq ft in built-up area, priced between RM495,000 and RM1.8 million. Damansara Foresta is a four-phase development launched in 2012.

Low says one of the biggest challenges for the overall property market this year is weak buying sentiment. “The expectation of further economic slowdown will affect property buyers. They will be extremely cautious in buying or investing in any property.”

Faced with more headwinds, Low expects the property market to see consolidation; smaller developers with weak balance sheets will have to merge or find partners to meet the challenges of a slowing market; better informed buyers; and tighter profit margins.

“The year 2016 will be a good opportunity for developers like us to continue to build on our brand as smaller players exit the market,” Low said.

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This article was first published in The Edge Property pullout, Jan 29, 2016, that appears every Friday with The Edge Financial Daily. Tap here to download your personal copy of The Edge Property pullout for free.

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