KUCHING: IJM Land Bhd (IJM Land) is experiencing strong property sales momentum having secured property sales of approximately RM500 million in third quarter financial year 2013 (3QFY13) after the implemetation of the Bandar Rimbayu project.
According to the research wing of MIDF Amanah Investment Bank Bhd (MIDF Research), the company secured property sales of approximately RM500 million in 3QFY13 and a cumulative sales of about RM1.4 billion which was already at par with full year sales in FY12.
The research house believed IJM L and sales could increase to about RM1.7 billion to RM1.8 billion by the end of FY13. MIDF Research noted that the registrants for the first phase of Bandar Rimbayu had already reached 15,000.
Soft launch of the project would commence in mid-February and the first phase which comprised of double storey terrace house with built up sizes ranging from 1,650 square feet (sq ft) to 1,800sq ft would be priced between RM580,000 to RM650,000.
Gross development value (GDV) for the first phase is estimated at RM300 million.
Phases two and three of Bandar Rimbayu were likely to be launched in FY14 with phase two comprising 480 to 490 units of superlink house with total GDV of RM300 million and phase 3 would be launched towards end of 2013 with GDV of about RM300 million to RM400 million, it noted.
Target market for the projects was upgraders from the densely populated catchment area of Kota Kemuning, Subang, Putra Heights, Klang and Shah Alam, MIDF Research pointed out.
On another note, IJM Land’s The Light Collection III was launched in Nov 2012 with total GDV of RM350 million. Sales was fairly encouraging at about 50 per cent with an average selling price for the apartment at RM700 per sq ft.
Reclamation for phase two is ongoing and will be completed in 2014. Phase two comprises of convention centre, shopping mall, two hotels, cultural centre and some office blocks.
To recap, IJM Land had partner Suntec International to develop the convention centre.
Named Penang Waterfront Convention Centre, the convention centre was slated to boast a 10,000 sq mts multi-purpose hall that could be converted to a 9,000-seat arena. There were also interested parties to operate the shopping mall, and the two hotels (four stars and five stars).
IJM Land could also set up a joint venture with future partners to joint develop several components of phase two with the former taking a minority stake.
Apart from the two flagship projects in Klang Valley and the northern region, it also planned to launch the last two blocks of Riana Green East and a service apartment project (RM400 million to RM500 million GDV) in Jalan Raja Laut.
GDV for the last two blocks of Riana Green East was about RM200 million.
“We believe sales for the last two blocks will be encouraging as the take up rate for the earlier phase was about 80 per cent with relatively affordable price range of about RM500 to RM600 per sq ft.”