Business

Demand for well-priced properties in soft market

Developers confident of take-up rate despite credit crunch

Updated 3 years ago · Published on 30 Aug 2023 11:52AM

Demand for well-priced properties in soft market
Amid concerns over the rising cost of living and the credit crunch due to tight borrowing rules, two developers in Penang continue to see demand outstripping supply (pic for illustration purposes only). – ABDUL RAZAK LATIF/The Vibes file pic, August 30, 2023

by Ian McIntyre

GEORGE TOWN – Two developers, in Butterworth and Sg Petani, are forging ahead with development projects despite the tepid property market outlook.

Amid concerns over the rising cost of living and the credit crunch due to tight borrowing rules, they continue to see demand outstripping supply.

The uptake is especially high for properties that are well priced and in strategic locations.

Jayamas Property Group Sdn Bhd marks its 12th anniversary as a developer with its first ever property showcase, featuring seven ongoing projects and debuting three new commercial developments.

Managing director Ooi Wei Chong foresees unabated demand for quality yet affordable living, as well as living amenities that cater for the ageing population.

Jayamas’ flagship project is the Bagan Suites, which includes recuperation facilities for the old and the sick who are receiving treatment at the nearby Bagan Specialist Hospital in Butterworth.

Others include two affordable housing developments called Ayana Residences in Teluk Ayer Tawar and Aston Minka Residences in Bukit Mertajam.

The company’s portfolio also features the MARC Residences and Service apartments in Butterworth and three-storey terrace homes in Air Itam.

Another highlight will be Ventus & Tradesmen, a mixed development at Southbay, Bayan Lepas. The total gross development value of the project is RM360 million.

The proposed development will see the construction of a 42-storey commercial building, featuring a mix of serviced suites, hotel rooms and shop lots.

Ooi is enthusiastic about the new projects as they are in sync with the development pace in Penang, especially with the projected roll-out of infrastructure such as the LRT and new highways under the Penang Transport Master Plan.

Set for new growth

Meanwhile, Eupe Corporation Bhd remains on track to return to double-digit revenue and profit growth, as it continues to execute its expanded projects, group managing director Datuk Beh Huck Lee said.

Addressing the group’s annual general meeting recently, Beh said its financial results for FY2023 continued to reflect the knock-on effects of delays due to the pandemic. 

However, Beh said proceeds from Eupe’s third and fourth Kuala Lumpur projects, Est8@Seputeh and Helix2@PJ South, were now growing on the back of strong take-up rates – more than 90% at Est8 and 70% at Helix2.

As a result, the revenue and profit-before-tax would rebound in FY2024 and beyond, Beh noted. 

He stressed the modest debt ratio of 0.23 times, despite the group funding major land acquisitions for Circadia and Edgewater in FY2023. 

This provides a strong platform to fund future land acquisition and project expansion.

He also pointed to rising expectations among younger home buyer segments, saying they were “creating more complex demands for design innovation and competitive pricing”. – The Vibes, August 30, 2023

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