PETALING JAYA, 2 February: Kedah-based property developer Bina Darulaman Bhd (BDB) yesterday unveiled its development plans for 2017 encompassing projects with a gross development value (GDV) of RM1.24 billion, with a prime focus on affordable housing, according to managing director Datuk Izham Yusof (pix).
He said 85% of the planned property launches will be affordable housing units in Kedah, which will be sold below RM500,000 each.
For the remaining 15% of medium and high-end housing, Izham said the company will scrutinise the market demand before embarking on it amid the current slowdown in the property market.
“We will launch all the affordable units this year but for the medium and the high-end, we will have to see if the market is ready for it, we will insert it otherwise we will delay that,” Izham told a press conference here yesterday.
He explained that unlike the Klang Valley, most people in Kedah are first-time home buyers whereby it is easier for them to get loans.
Among the projects lined up this year are two townships – Darulaman Saujana and Darulaman Sejahtera in Jitra and Sungai Petani respectively. The projects are slated for completion within the next five years.
Izham also said that BDB continues to look beyond Kedah such as the Klang Valley, but has ruled out expansion into the Penang market.
“I think Penang is a tough market and there is no land to take off and if we were to go in and do it, it is not going to be an affordable home. Why go there when you know all the major players are there,” he said.
“We look at areas where we think there is still value and for us to create value. We really need to search where we think the opportunities still remains,” he added.
Despite tougher market conditions, Izham said BDB has set aside RM50 million for land banking activities this year if opportunities do arise.
For the nine months ended Sept 30, 2016, the company reported a 9.5% increase in net profit to RM10.73 million against RM9.8 million in the same period a year ago.
— THE SUN