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Friday, 16 June 2017

(The Edge Financial Daily) Affordable housing sector to sustain property market for next three years — LBS Bina

BY ANETTE APPADURAY

KUALA LUMPUR: The nation’s property market is expected to be sustained by the affordable housing sector for at least the next three years, according to LBS Bina Group Bhd managing director Tan Sri Lim Hock San.

“I think for [at least] the next two to three years, [affordable housing] properties will sustain the property market as long as the economy continues to grow,” Lim told reporters after the group’s extraordinary general meeting here yesterday.

“At an average GDP (gross domestic product) growth rate of about 5% to 6% per annum, the property market will be sustained,” Lim added.

Lim said the range of affordable housing properties is usually priced at RM500,000 and below. “The prices of affordable units depend a lot on the location of the property, but it can generally be priced around RM500,000,” he said.

This year’s first quarter GDP growth of 5.6% is a positive indicator that the economy will continue to grow this year, said Lim.

He added that it would be difficult to predict the property market outlook beyond the three-year point.

LBS Bina, which currently has 3,920 acres (1,586ha) of undeveloped land bank across Malaysia, is eyeing opportunities for more joint ventures for new development.