Bina Darulaman lines up RM435m worth of projects in 2016

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KUALA LUMPUR (Jan 29): Property developer Bina Darulaman Bhd has lined up new property launches with total sales value of RM435 million this year, said its group managing director Datuk Izham Yusoff.

These new launches will be within its existing township developments of Bandar Darulaman in Jitra, Darulaman Perdana in Sungai Petani and Darulaman Utama in Kuala Ketil, which are all located in Kedah.

Izham said the planned launches consist of 1,350 residential units, comprising mostly affordable homes. Of the total, 30% will be priced below RM300,000, he added.

In terms of gross development value (GDV), the group will be launching RM59 million, RM25 million and RM50 million of affordable homes in Bandar Darulaman, Darulaman Perdana and Darulaman Utama respectively.

In total, the three developments have a GDV of RM485 million.

“Despite most analysts saying that the property market has slowed down due to the current economic conditions, we are confident of selling our properties, as there is demand for affordable homes in Kedah,” he told a press conference today.

Izham is of the view that the property market in Kedah is more stable, compared with other property hot spots such as the Klang Valley, Penang and Johor, as the Kedah market is fuelled by owner occupiers.

He pointed out that the group’s Property Fiesta 2016 held on Jan 23 and 24 at Bandar Darulaman indicated strong interest from homebuyers, as the event saw a turnout of 955 registered potential purchasers.

Between March and October this year, the group will be promoting its launches through its roadshows in Seberang Perai, Sungai Petani, Jitra, Kulim and Penang.

“What we are trying to do with the Property Fiesta is to use it as a platform to promote our projects and also to educate the public on the process of purchasing properties through the presence of the Employees Provident Fund, banks and solicitors, which will have consultation desks at the event,” said Izham.
He said Bina Darulaman will also be showcasing its upcoming Kedah projects, namely Darulaman Saujana in Hosba and Darulaman Putra in Sungai Lalang, but did not elaborate except to say that they are still in the planning stages.

Yesterday, the group announced to Bursa Malaysia of its intention to venture into the Perak property market, after proposing the acquisition of an 8.6-acre piece of land in Kuala Kangsar.

“We have always talked about moving out of Kedah. We considered landbanks in the Klang Valley and other areas, but we decided to go with the Kuala Kangsar land.

"It is not the right time to buy land in Klang Valley, as the market there is depreciating," said Izham.

“Perak is also not far off from our base in Kedah. The demographics and demand for housing are already there, so there are definitely opportunities,” he added.

He added that the Kuala Kangsar land will be used to construct a mixed development, which is expected to be launched in mid-2016, with completion projected to be within two years.

Going forward, Izham said Bina Darulaman will continue to look for opportunities to build up its landbank, not only in Kedah and Perak, but also in Perlis.

As for the Klang Valley, he said the conditions are currently unattractive, but it will consider if any opportunities arise.

On the affordable housing measure announced in the recalibrated Budget 2016 yesterday, which stated that all new housing projects priced up to RM300,000 will be limited to first-time home buyers, Izham lauded the move.

“This is a good measure, but the main issue right now has to do with financing. We hope financial institutions will take steps to ensure first-time buyers get the financing that they need,” he said.

At 3.08pm today, Bina Darulaman shares were unchanged at 63.5 sen with 1,200 shares done, giving it a market capitalisation of RM193 million.

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