Tambun Indah plans RM200m capex to expand landbank
GEORGE TOWN: Property developer, Tambun Indah Land Bhd, plans to spend RM100 million to RM200mil in capital expenditure (capex) this year to buy more land.
Managing Director Teh Kiak Seng said the group was actively scouting for land in Penang especially in Seberang Perai.
“We will spend to expand our landbank based on the opportunities that arise,” he said at its AGM on Wednesday.
Teh said the group planned to add about 200 acres to 300 acres of land to the current 562 acres of undeveloped land in Seberang Perai Selatan.
“We’re currently talking to a few landowners in Seberang Perai but so far nothing has been confirmed,” he said.
Teh also said the group had secured about 70 per cent take-up rate on its ongoing projects.
“We’re expecting our projects Taman Bukit Residence, Camellia Park and Seri Permai with a total gross development value of RM114 million to be completed by this year,” he said.
He said the group’s unbilled sale totalled RM425 million as at March and it is expected to contribute to the group’s earnings over the next two to three years.
Teh said the group was poised for better growth this year, driven by Penang’s booming property market.
He said the property market in Penang’s mainland is expected to grow, boosted by the completion of the Penang Second Bridge project.
“Following the skyrocketing property prices on Penang Island, many Penangites have opted to buy properties on the mainland, this has increased our property sales, especially our current projects in Seberang Perai Selatan,” he said.
Tambun Indah Land’s pre-tax profit rose 32.1 per cent to RM23.98 million in the first quarter ended March 31, 2013 from RM18.15 million in the same period last year.
Its revenue increased 18.7 per cent to RM78.32 miilion from RM65.99 million previously.
Teh said the revenue growth was mainly derived from newly launched projects Pearl Residence and Pearl Indah 3 on Penang’s mainland and Straits Garden on Penang island. – Bernama
Source: StarProperty.my
Looking for chicken farm or pig farm again
Agree with u and add one more foreigners area.
Of course lah chicken farm, pig farm and foreigners area land very cheap. That all the best marketing strategy when you buy cheap land, develop housing and sell the house at market price. But when problems like house flies, stench, foreigners placement and others happen it’s all buyers problem not the responsibility of the developer. You buy you sendri tangung lah…
Buy besi buruk and sell as gold
the same fundamental applies to all business lah…buy low sell high…
Biggest lie in Penang…. Shortage of land. Hahahaha… Sorry had to laugh. How can there be a shortage of land when all these developers are able to continuously buy up land? How did they find this land? I heard there is a shortage… How can there be over 170 developments going on just on the island itself? I heard there is a shortage… Do you people really believe the lies that are being fed to you buy the agents and sales reps?????
@Expat
Where did you get this info that 170 developments going on just on the
island itself?
@Wondering
Step 1. Type in www,penangpropertytalk.com
Step 2. click on the location tab at the top of the page
Step 3. Select the Penang Island sub menu
Step 4. Scroll down to about half way down the page until you see Penang Island Properties on the right hand side.
Step 5. Count
Hope that helps Wondering…. Maybe you should be wondering why no one wants to buy your over priced property?
How can it be worth RM200-300k more than of the plan price? Did you do something magical to add value to it? All you did is speculate… I don’t think that is considered adding value.
@Wondering
Step 1. Type in www,penangpropertytalk.com
Step 2. click on the location tab at the top of the page
Step 3. Select the Penang Island sub menu
Step 4. Scroll down to about half way down the page until you see Penang Island Properties on the right hand side.
Step 5. Count
Hope that helps Wondering…. Maybe you should be wondering why no one wants to buy your over priced property?
How can it be worth RM200-300k more than the launch price? Did you do something magical to add value to it? All you did is speculate… I don’t think that is considered adding value.
So… 23.98/78.32 = 30.6% profit…. Hmmm
Now about a year ago there was a number of articles about how developers made less than 10% profit and it wasn’t them artificially raising the prices of properties. This article just proved that the developers are artificially raising the prices of their developments and passing it off as market fundamentals doing their thing.
You got to love uneducated/ignorant speculators believing every lie they are fed…
@Expat
“How can there be over 170 developments going on just on the island itself ?”
Do you understand what you are saying ? If you think it’s not worth please
at all mean, DON’T buy. Wait for the price to drop 50% or when the sun rises
in the west then you buy. Keep waiting and hoping. If I sell it tomorrow or
next year, no problem.
No DIBS, NO FREE LEGAL FEE & NO FREE S&P = I will still buy. You are still far
behind. Wait for another 10 or more years then you might be able to swim
a little bit. Happy Waiting.
agree with you …. these greedy developers favourite excuse is shortage of land yet they are able buy vast tract of land unhindered continuously … unscrupulous & unprincipled conmen
@Wondering
Did you not understand step 1 to 5? Count the number of current projects listed on this website…
Yes please continue to buy property and get your 1% yield… But I don’t think you have the holding power and you will file for bankruptcy very soon.
And wait I will… As I have shown in one of my other posts property prices in Penang are already falling. Have a look at Central Park as a good example. In January 2013 the asking price was RM940-950k, now in June 2013 the asking price has dropped down to RM820-850k. I will put my reputation on the line and state that the asking price will drop down to RM750k by the end of this year…
Just because a development is more expensive to buy at launch then the previous one does not mean that the property prices have gone up… It just means that the developer has raised the price up artificially to make it look like property prices have risen.
If you don’t believe me that property prices will continue to fall in Penang then just choose 2 or 3 recently completed projects that are now listed for sale by the speculators and watch the asking price go down. All you have to do is check iproperty every 2 months and see for yourself…
Or you can go to the bank auctions like I do and see how many properties have been taken by the banks and selling for almost the same price as the launch price or less… Those speculators thought they could make big profits just by putting down a RM20k deposit until they realised no one wanted to buy their over-priced property.
@Expat
You should be worrying as the price is not coming down as you would like.
Just do nothing and keep waiting. Just RM 20k and you want to make big
profit in property, you really make people laugh.You only can buy Proton
Saga.
@Wondering
I suport you because I am a genuine investor…lol
With current malaysia government only thinking to push everything raise higher….”expat” really “so hai” dreaming the price already drop….by just checking iproperty numbers of posting and certain properties probably 1 or 2 properties selling under market values….
I think he or she must not have any properties or struggle to get penang island properties but not afford then blame here and there . I think ” expat” should consider goverment affordable housing not current market properties…hey we don’t your kind “so hai professional advice here” hehe
Haha…
The best example of land bank project from this developer is Juru Heights.
@Residents
why no one says palm villas is by this developer?
@Expat
Agree that bank auction is where the real bargain is right now. The 1750 sqf apartment with swimming pool I’m sitting in and typing right now I bought at auction at 60% off the price the previous owner paid citibank according to the title docs. Right now there seems to be a lot of auction even at “prime” jalan kalawei at a particular new high end condo.wonder why. also saw multiple pre-war s on burma road on the block recently, really can’t find a buyer?? .
Sorry to say this but your reputation means nothing in this forum or anywhere else. Keep your reputation to yourself and relax. Carry on waiting…
Bcoz Juru Heights is the best as an example of good design and well-planned development. As a good reference for all.
Are u lost your mind? Juru Heights is a example failed project from landbank. Some people think the concept of landbank is buy a land, save and build. I think ABC or 123 developers also able to do that. Normally they will buy isolated land, agriculture land, non infrastructure land to make as future development. The important thing is how to develop that land with a good planning and quality projects especially in worse areas. Great developers are able to develop a good development even in the worse area or ground.