KUALA LUMPUR: Protasco Bhd will be launching affordable homes with a gross development value (GDV) of RM600 million at its De Centrum City township in Kajang by the second quarter of 2017 (2Q17), as the group capitalises on the strong demand for this segment amid a subdued property market.

Protasco executive vice chairman and managing director Datuk Seri Chong Ket Pen said the local property industry is still facing a challenging time amid the various cooling measures imposed.

He added that the dampened market has impacted its Rimbawan project at De Centrum, which offers middle to upmarket units priced between RM800,000 and RM1.5 million.

“We feel that in order to buck the market trend, we have to concentrate more on affordable housing. The recent Budget 2017 also announced several affordable housing measures, so our strategy is in line with the government’s move to build more affordable housing.

“So we will be emphasising more on affordable phases to be launched,” he told the media at a press conference, following the conclusion of the group’s extraordinary general meeting yesterday.

Chong said the group is looking at launching the affordable houses in two phases, with each phase valued at RM300 million, on an eight-acre (3.24ha) piece of land within the De Centrum township.

“We have almost finalised the plans for the affordable homes. The units measure between 500 and 600 sq ft, with state-of-the-art interior design packages.

“There has been good response as there were lots of enquiries already before we even launched it. We will probably launch it within the second quarter of next year,” he said.

Meanwhile, the RM350 million GDV Rimbawan development will go on, said Chong, but he added that construction works will only commence when bookings reach 40%. Currently, bookings stand at around 30%, he said.

The group had already pushed back the launch of the development, which was supposed to be in June this year. Protasco now aims to launch the project before end-2016.

“Rimbawan was supposed to be launched in June actually. We delayed it for at least six months to one year, but we are still selling the units. This project is obviously impacted by the slowdown in the property sector, but we will adapt to market needs and focus more on the smaller units,” he said.

Meanwhile, Chong said the group is doing a feasibility study to develop the seven acres of land it owns in Sandakan, Sabah, seeing as more developments are popping up in the vicinity of the tract.

Protasco is also looking to develop the 14 acres it owns in Pasir Gudang, Johor, which Chong said could comprise three-storey and four-storey shops.

“We are on the lookout for more land and we are looking at areas outside the Klang Valley. We are contemplating to venture into mass housing — such as double-storey houses, semi-Ds and bungalows.

“We are looking at a few offers now actually. We are targeting to secure land banks measuring about 100 acres to 150 acres for townships,” he said, adding that the weak property market provides a good opportunity to acquire land.