How many readers of kopiandproperty.my believe that the developers, especially the listed ones would start to report losses beginning 2016? I think the answer is not many, if any. What about the potential for more developers and developments? Especially those newer developers who are converting their available pieces of idle land or those who are buying small pieces of land and launching homes with attractive price tags? Yes, there are many. In other words, market is slow but even currently property development is still a profitable venture.
Reported in a few local medias, within 2016, OSK Property plans to launch properties across Pahang (Timurbay), Penang (Luminari service apartments in Butterworth) and Kedah (Bandar PuteriJaya township new phases). Total Gross Development Value (GDV) for these projects is RM1 billion. No mention about its sales target for 2016. It’s chief executive officer Ong Ghee Bin further stated that, “This year is going to be a very challenging time for the property market. My aim for the group is to continue our journey in the integrated property development sector. We are quite well-positioned due to our retail and hospitality teams. But of course, we will not be too aggressive this year.”
I think this sums up the current cautious sentiments even for developers who seem to be well positioned. OSK Property is formed after the merger of OSK Property Holdings Bhd and the real estate arm of PJ Development Holdings Bhd. While Malaysia is its main focus, OSK Property would also be looking at other countries for opportunities. It’s five acres integrated development in Melbourne is still in the design stage. It includes apartments, hotel, offices and retail. The first phase is expected to be launched by the end of 2016.
OSK Property has also recently purchased 308 hectares of land in Seremban which will be used for an integrated residential and commercial development with a total GDV of RM3.6 billion. No mention of the date of launch but definitely not within 2016. Happy following and buying.
written on 25 Feb 2016
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