Gamuda’s property division is expected to perform better next year due to the launches of several new townships.

SHAH ALAM: Gamuda Bhd has set a target of securing RM3.5 billion in property sales in the financial year ending July 31, 2018 from RM2.4 billion secured in 2017.

Group managing director Datuk Lin Yun Ling said the group’s property division is expected to perform better next year due to the launches of several new townships.

These include Kundang Estates, an 89-acre boutique low-rise residential enclave, and Gamuda Gardens, an 810-acre integrated township in northern Kuala Lumpur.

Lin said the current contribution from both of its local and overseas projects are at 50:50, but overseas projects have contributed well towards the group’s property sales.

“Currently, our overseas projects are doing quite well. Two third of our profit from the property segment was contributed by our overseas projects in Singapore, Hanoi, Ho Chi Minh and Melbourne,” he told reporters after Gamuda’s annual general meeting here today.

On its construction business, Lin said the group is expected to maintain its annual orderbook size of between RM6 billion and RM8 billion next year.

However, the company is expected to face increasingly challenging year ahead as he foresees subcontract cost to rise due to the ramping up of construction projects.

“We are expecting subcontract prices will move in the next two to three years when other new projects come in.

“When there’s a lot of projects coming in, subcontractors tend to increase their prices and we are monitoring this as it progresses.

“It is something we would have to be careful about,” he said.

Currently, he said the company’s orderbook size stands at RM8 billion and will keep the company busy over the next three years.

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