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031
Gamuda Berhad (29579-T) • Annual Report 2012
MAlAYsiA
The domestic market started on a relatively strong
note in the first half of FY2012 but weakened in the
second half of financial year as several measures
introduced by the Central Bank to cool down the
market took effect. Among these new measures
were a 70% cap on the loan-to-Value ratio for a
buyer’s third property mortgage onwards, and the
Responsible Finance Guidelines where the loan
eligibility evaluation is computed based on a buyer’s
net income compared to gross income previously.
These measures resulted in a pronounced
slowdown in the higher-end segment of the market.
however, demand for the mid and upper mid-range
properties remains relatively resilient.
notwithstanding this, the property market in
iskandar, Johor appears to be more resilient
than the Klang Valley. The growing maturity of
the iskandar development, as well as improved
accessibility following the recent opening of the
Coastal highway helped sustain strong interest
from singapore buyers. This is reflected in the
record levels of sales being consistently achieved
at horizon hills.
land bank replenishment has always been a priority
for the division. Given the sharp escalation in land
prices in recent years, coupled with the unveiling
of the Klang Valley Mass Rapid Transit (KVMRT)
master plan, identifying and sourcing good land
parcels have become even more challenging. in
this respect, the division has recently acquired
a small piece of freehold commercial land in
Kelana Jaya. This 4.86 acre parcel costing RM95
million is planned to be developed into a mixed
commercial development. located in the matured
neighbourhood of Kelana Jaya, this development is
expected to generate a GDV of about RM630million
over 5 years starting in 2015. This development
will also be the division’s third niche development
after Madge Mansions (a low-density luxury
condominium) and The Robertson (city-centre
mixed commercial/residential development).
in the meantime, the division continues to scout
around for new township land to replenish the
soon-to-be completed Valencia and Kota Kemuning
projects. Given the several ongoing and upcoming
developments, the division is in no particular
hurry to add to its existing land bank and will
patiently wait for the right opportunity, tagged at an
attractive entry price before committing to any new
developments.