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The division delivered a commendable set of results
amidst challenges faced in both the local and Vietnamese
property markets.
In Malaysia, Bank Negara Malaysia’s effort to cool down
the property market took full effect in FY2013. Malaysia’s
central bank imposed a 70% cap on the Loan-to-Value ratio
for the third property mortgage onwards, and enforcing
loan evaluation criteria to be based on the borrower’s net
income.
This restrictive environment was further compounded by
the political uncertainty from the 13
th
General Election
(GE13) which was held in May 2013 and well into the
last quarter of FY2013, as buyers adopted a wait-and-see
attitude.
Despite the setbacks, sales from our Malaysian property
projects achieved significant growth during the financial
year. Main contributors of new sales in Malaysia comprised
our established township projects, namely Bandar Botanic
in Klang, Selangor, and Horizon Hills in Iskandar Malaysia,
Johor. New sales achieved from these large-scale townships
were RM334million and RM1 billion respectively, for FY2013.
Sales performance for our property venture in Vietnam,
notably Gamuda City in Hanoi and Celadon City in Ho Chi
Minh City, was less than encouraging due to the sluggish
Vietnamese economy. Vietnam’s Gross Domestic Product
(GDP) grew by 5.03% in 2012, the slowest since 1999.
032
Operations
Review
Property Development
Gamuda Berhad (29579-T)
Annual Report 2013
Nestled in the heart of Horizon Hills is its award-winning 18-hole designer golf course known for its spectacular scenery and sprawling greens.