PUTRAJAYA: IOI Properties Group Bhd (IPG) is targeting to achieve RM2 billion in sales for new property launches in the financial year ending June 30, 2020 (FY2020).
"This year, we will continue to look into affordable houses because that is where the market is right now. The profit margin would be lower but we will try to launch more products as well," chief executive officer Lee Yeow Seng told reporters after the company's annual general meeting here, today.
Lee acknowledged that domestic property industry will remain challenging in the near term.
However, the company will actively monitor developments in the sector, especially the affordable houses to achieve the set target.
Lee further said sales has been picking up since the company's participation in the Home Ownership Campaign (HOC).
"We have managed to bring down the inventory during this period because buyers took advantage from HOC," he said.
The group has also secured new sales by capitalising on its matured and established townships such as IOI Resort City, Bandar Puteri Puchong and developments in Johor.
These townships already achieved critical mass and more resilient to property cycles due to prime localities near amenities, commercial hubs and established transportation infrastructures.
Meanwhile, the IOI City Mall Phase 2 is projected to add another 1.1 million square feet of net lettable area to the existing 1.5 million square feet space by end 2021, making it one of the largest retail malls in the country.
For the current financial year, the Group posted a revenue of RM2.20 billion compared to RM2.67 billion in FY2018.
Group revenue on a segmental basis continues to be driven by property development (RM1.63 billion), property investment (RM354.96 million), hospitality & leisure (RM198.01 million) and other operations (RM9.96 million).