KUALA LUMPUR (Jan 4): LBS Bina Group Bhd set its 2019 new property sales target at RM1.5 billion as the developer foresees persisting housing loan application rejections in Malaysia curbing real estate sales.

LBS group managing director Tan Sri Lim Hock San said the group's property sales have been heavily affected by banks' stringent loan approval criteria.

“We foresee housing loan application rejections to persist this year, expecting a rate of 50% or more,” Lim said here today at a media briefing on LBS' business outlook. He said the housing loan application rejection rate stood at 50% in 2018 and 45% in 2017.

Despite the subdued property market, he said today LBS achieved in 2018 a 7.1% increase in property sales from RM1.426 billion in 2017.

Today, Lim said : “We are trying to sell houses with pricing around RM300,000 and this will be our focused strategy for the next five years.” He said properties in this price range have always been well received and can help tackle the high rejection rate on housing loan applications.

The industrialised building system (IBS) is a crucial component in LBS' property projects. Lim said he believes the IBS can shorten construction period, hence, faster delivery of projects.  

Going forward, Lim said LBS hopes to leverage this system for Selangor government projects.

At Bursa Malaysia today, LBS shares were traded unchanged at 64 sen at 2:38pm. LBS' latest-reported net assets per share stood at 85 sen.