The small property developer with a market value of about RM228 million wants to reposition itself as a builder of high-end propertyLBS Bina Group Bhd (5789), well known for building affordable homes, wants to reposition itself as a builder of high-end property, an indication that demand for expensive properties is still strong- The small property developer with a market value of about RM228 million plans to focus on the medium-high to high-end market segment to earn better profit margins- "We are transforming ourselves- We need to make profits as we are answerable to shareholders," LBS Bina managing director Datuk Lim Hock San told Business Times in an interview recently- Property prices in certain parts of the country and especially the Klang Valley have been rising strong, helped by cheaper loans and easy purchase schemes offered by developers- Last year, Bank Negara Malaysia had to set a limit on loans for those wanting to buy more than two houses as it sought to curb speculation- Spearheading LBS Bina's brand in the high-end market will be its jewel project called D'Island Residence in Puchong - an eight-year project with a gross development value (GDV) of RM2-9 billion- Overall, the D'Island Residence will be developed on 175 acres and once completed, it will have a total of 237 units of super-link house, 298 semi-detached units, 148 bungalow units and 352 high-end condominiums as well as commercial units- The signs are good as during the soft launch recently, 51 units of super-link houses were sold- The official launch is in April 2011-It also plans to launch 122 units of super-link houses that cost just below RM1 million each and 74 units of semi-detached houses at above RM2 million- A property analyst said most developers are now pricing in higher land and development costs into selling prices to sustain profit margins- The key items that have risen significantly are land and construction materials, especially steel- "Of course LBS Bina has a big task to convince investors that we are able to provide return on investment for high-end projects- Location will be a key element as well," Lim added- Still, LBS Bina will continue to build affordable homes pegged below RM350,000, albeit at a redu-ced scale- The group has been building affordable homes at Bandar Saujana Putra - its flagship development spanning over 835 acres- This self-integrated township was first launched in February 2003 and LBS Bina has handed over more than 5,000 units of various types of properties since then- This year, the group plans to build 60 per cent of houses priced above RM350,000- As of March 3 2011, LBS Bina had sold properties worth RM121-7 million and 83 per cent of them were in the medium-high segment- LBS Bina shares fell 3-3 per cent to close at 59 sen yesterday- ...

More