KUALA LUMPUR (Jan 6): LBS Bina Group Bhd sets its 2020 new property sales target at RM1.6 billion, similar to the sales target of RM1.63 billion it achieved in 2019, as the group is expecting the lower interest rate environment to continue to support its property sales.

Its managing director Tan Sri Lim Hock San (pictured) is confident about the new property sales target of this year, citing the market is anticipating another rate cut for the overnight policy rate (OPR) this year, which he added bodes well for LBS Bina's housing sales.

The OPR cut by the Bank Negara Malaysia (BNM) in May 2019 had boosted the group's property sales in 2019, according to Lim, adding that the Home Ownership Campaign also contributed to the increase in property sales last year.

For 2020, the market is also saying there is a possibility of reducing the benchmark interest rate further from 3% to 2.75%.

As a result, the group has exceeded its sales target of RM1.5 billion in 2019, reaching RM1.63 billion — up 6.82% year-on-year compared to the RM1.526 billion of sales achieved in 2018.

From 2014 to 2019, the group's property sales achieved a 20.37% compound annual growth rate (CAGR).

Meanwhile, the group is planning RM2.32 billion worth of new property launches in 2020, from 11 projects. Out of these, seven projects are priced below RM500,000.

To date, the group has unbilled sales of about RM2.24 billion, it is expected to provide clear earnings visibility for the group in the next two to three years.

At 12.30pm, LBS Bina's share price fell one sen or 2.02% to 48.5 sen, bringing it a market capitalisation of RM764.92 million.