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IOI Properties Group Bhd (IPG) targets RM2 billion sales for their fiscal year ending 30th June 2020. Said Chief Executive Officer Lee Yeow Seong after their company’s general meeting, "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.”

While Lee acknowledges that the industry will remain challenging in the near future, IOI Properties will continue to monitor the market – especially the affordable homes segment – to achieve the set target. Sale of properties in IOI Properties has in fact been picking up, since the participation of IOI Properties in the Home Ownership Campaign (HOC).

Said Lee, "We have managed to bring down the inventory during this period because buyers took advantage from HOC.”

IOI Properties has also secured new sales through its current established townships of IOI Resort City, Bandar Puteri Puchong and developments in Johor. Due to their strategic location close to amenities, public transportation, and commercial hubs; and having established critical mass; these townships are more resilient to property cycles.

Meanwhile, IOI City Mall Phase 2 is anticipated to add on another 1.1 million sf of lettable area by the end of 2021. This is in addition to the existing 1.5 million sf, which the addition will make the mall one of the largest in the country.

IOI Properties has posted a revenue of RM2.2 billion in the current financial year, as compared to RM2.67 billion in FY2018. The Group’s revenue, based on its segments, continues to be driven by its property development segment at RM1.63 billion, followed by its property investment segment at RM354.96 million, and then its hospitality and leisure segment at RM198.01 million. Its other operations brought in a revenue of RM9.96 million.

Read more property news HERE.

(11th November 2019)