KUALA LUMPUR: Jiankun International Bhd (Jiankun) is upbeat about the outlook of the property sector as it believes the worst is over for the sector.
Jiankun expects to ride on the stronger demand ahead, driven by a better economic outlook and the record-low interest rate environment.
Executive director and chief executive officer Edwin Silvester Das said people were more familiar with the pandemic in 2021 compared to last year.
"Vaccinated people will feel more secure when visiting project sites to buy a home. Coupled with the government's measures such as Home Ownership Campaign and the current low-interest rates, we strongly believe demand will be stimulated again," he said in a statement today.
Edwin said as the pandemic delivered severe impact on the property sector, this had put Jiankun in a good position to leverage and negotiate to acquire lands at attractive prices.
Jiankun recently embarked on the replenishment of its landbank in anticipation of the economic recovery supported by the National Covid-19 Immunisation Programme and the positive factors driving housing demand.
The company aims to increase its landbank to around 50 acres by the end of 2021.
Its ongoing Amani Residences in Puchong, Selangor is 95 per cent physically completed, despite the strict standard operating procedures (SOPs), resurgence of Covid-19 cases and the reintroduction of a more stringent movement control order (MCO) in the country.
Jiankun expects the unit hand-over to the buyers to take place by the fourth quarter of this year.
With a sales rate of 95 per cent, it said this would contribute to its performance in FY21.
Meanwhile, Jiankun said Edwin's vast experience in the banking sector both in Malaysia and abroad and his ability to turn around companies put him in a good position to push forward its agenda to expand its landbank and complete its existing ongoing project.
In December 2020, it proposed to acquire a leasehold land in Melaka to build serviced apartments and a 28-storey hotel.
This also marked the company's strategy to expand its property development outside of the crowded and competitive landscape of Klang Valley.
Additionally, the company has in the first quarter this year announced its diversification into the land reclamation business, following the acquisition of Embon Global Venture Sdn Bhd.
This acquisition provided Jiankun with immediate access to reclamation concession rights for an area spanning 30 acres in Melaka.
It also acquired Limpah Restu Development Sdn Bhd for RM10 million in March this year.
"This acquisition comes with the alienation of 16-acre leasehold land from the State of Perak, for the business of private cemetary, crematorium and columbarium."