Tan Sri Lim Hock San at LBS Media Briefing 2016, Q&A Session
LBS growing from strength to strength since 2014
LBS Bina recently gave a media briefing, presented by their Managing Director, Tan Sri Lim Hock San, whom was very personable and spoke about his outlook on the real estate industry based on his 20 years in the business. LBS is the brainchild of Datuk Lim Bock Seng, whom founded it in 1963 with very humble beginnings, and the business was delivering construction materials. But that was no longer the case 2 generations later, as the family business later developed thousands of acres of real estate, amassed an undeveloped landbank upwards of 2,000 acres and being the proud owners of an international racing circuit in Zhuhai, China. Dato' Seri Lim Bock Seng has most certainly came a long way from delivering bricks and clay balls.
Tan Sri Lim Hock San with father, Dato' Seri Lim Bock Seng
He started off by discussing the various factors which led to the current, murky state of the property market. With the most recent issues in mind, Tan Sri explains how LBS Bina has a plan to go from strength to strength, and continue to achieve their sales targets. The past few years have been very fruitful and rewarding for LBS Bina group under the leadership of its diligent and experienced director. In 2014, the group achieved RM644 million in sales, a feat to be topped in 2015 with sales amounting to more than RM1 billion. As for 2016, the group boldly targets RM1.2 billion in sales - a figure that its leader feel is conservative and achievable. As 85% of the sales in 2015 was from Klang Valley, a good chunk of the new launches in Puchong and Selangor next year would be keeping this focus.
The Tan Sri in evaluating the sales figures for 2015, noted that upwards of RM 900million was lost in "unbilled revenue". In devspeak, it means that their buyers were unable to secure housing loans from the banks, and there was little a developer can do about that of the business, unrealised demand. With credit getting more expensive across the board and banks tightening their moneylending guidelines, LBS understands that affordability is what the customers need, and the price simply has to be kept low. With this in mind, LBS Bina has opted to devote a considerable portion of its portfolio towards developing affordable housing.
Residential Developments for 2016
LBS Bina's latest offering in the affordable category. BSP21 is the name of the master development, and many smaller projects are sccattered across BSP21. It is easily accessible from the ELITE Expressway, near other matured developments such as Putrajaya, Putra Heights, USJ, and Puchong. The development spans over 21 acres of leasehold land, and gross development value (GDV) of BSP21 is RM1.419 billion, excluding BSP Village, the commercial part of BSP. Phase one of the development has already been launched, with more than 90% of the 892 units sold.
Rumah Selangorku Bandar Saujana Putra is a joint development between the Selangor government and LBS Bina Group Berhad. The area has a GDV of RM228 mil, consisting of five, 12-storey blocks, which houses 1,312 affordable homes and 24 shop units. Units are affordable priced, starting from RM150,000 up to RM180,000, with a built-up of 800-900 sf. The response to the development was overwhelming, with more than 40,000 applications coming in for the 1,312 units.
Other residential units are fairly priced, starting from RM317,900 up to RM524,900 for approximately 1,000 sf. The director points out that the layouts offered are based on market research, and caters to the newly-identified needs of the market. Each of the units in BSP21 comes with 3 bedrooms and 2 parking spaces, as he feels that most families today are opting for two cars. The 28 units of shoplots under BSP21 are priced from RM700,900. Apart from these residential units, BSP Village is also developed nearby - a commercial development with 165 units of shop offices, going at prices starting from RM1.18 million. The GDV of BSP21 form almost 50% of LBS's 2016 development portfolio.
D'Island Residence is a leasehold development launched in year 2011 located in Puchong. The centrepiece of the development is a huge lake with plenty of recreational activities prepared for its habitants. The lake comes landscaped with aquatic features and recreational facilities. Parks and jogging tracks surrounding the lake, and a commercial area is in the works as well. Residential units offered in this development range from condominiums to bungalows, and everything in between. D'Island is well situated within the rapidly developing enclave of Puchong, 15 minutes from Kuala Lumpur City Centre.
Located at the heart of D' Island Residence, Skyvilla is a 17-storey condominium with unit prices starting from RM649,900. There are a total of two blocks, and units comes with a built-up range of 1,026 to 1,218 sf. The development is low density, and units come with 3 bedrooms and 2 bathrooms. Skyvilla is well equipped, and comes with over 30 facilities comprising of gyms, pools, gardens, and playgrounds.
Corallia 4 comprise of the semi-detached units within D'island Residence. Phase one of Corallia 4 would consist of 86 units of double-storey semi-detached homes with 14-foot high-volume ceilings. Land size is generous, and measures 40ft x 80ft. Units come with 5+1 bedrooms, and 6 bathrooms, and approximate built-up for each of the units is 3,968 sf. Going prices are at RM1.7 million as of 5/1/2016.
Nautilus is part of D'island Residence, consisting of triple-storey superlink houses. The architecture and desing is inspired by Scandinavian elementsThe development is characterized by picturesque forests, sparkling water enclosures and coastal island charm. There are two land areas offered in Nautilus, coming in either 24ft x 100ft, or 24ft x 80ft. Most of Nautilus have been sold at the time of the event, with only a few units remaining from unapproved loans.
is located right next to D' Island Residence, LBS's premier development located at Puchong. Desiran Bayu is most notably, built on Malay Reserve Land, e. A total of 598 units are planned for Desiran Bayu, with unit types ranging from Double-storey cluster-link, double-storey semi-detached units, and double-storey terrace. Prices start from RM420,000 for a terrace unit, RM600,000 for Cluster-link units, and up to RM820,000 for semi-detached units.
Apart from the residential offerings within Klang Valley, LBS also has plans for industrial developments. One of them is located in Telok Gong, Klang.
Telok Gong is known as an industrial area among the locals, and anyone who has been to the area will not use the words "organized" to describe it. With this problem in mind, LBS has conceptualized a modern industrial zone with systematic layouts and incorporated functional design elements into its architecture. The result is versatile, light industrial workspaces which can be converted into a logistics hub, a warehouse, or a service centre. The project spans over 60 acres, and a total of 96 units are planned for the development. Three unit types would be offered, including 1) Single-storey low cost factory, 2) 1½-storey bungalow factory, and 3) 1½-storey semi-detached factory. The low cost units are already sold out, and semi-detached factory units start from RM3.5 million.