Gagasan Nadi Cergas Bhd group managing director Wan Azman Wan Kamal.
PETALING JAYA: Gagasan Nadi Cergas Bhd
expects the outlook for affordable housing in Malaysia to be bright, in tandem with positive developments in the overall housing market.
Citing a survey by the Real Estate and Housing Developers’ Association (Rehda), Gagasan Nadi group managing director Wan Azman Wan Kamal said residential sales in Peninsular Malaysia jumped close to four times to 11,273 units in the first half of 2023 from 3,163 units in the first half of 2022.
He also noted that residential launches in Peninsular Malaysia doubled to 14,392 units in the first half of this year, from 7,350 units in the previous corresponding period.
“The spike in launches and sales indicates that the property market is returning to normalcy after the slowdown that was faced during the pandemic.
“However, the industry still faces challenges in terms of rising raw material prices and high labour costs due to labour shortage,” he told StarBiz.
Additionally, Wan Azman pointed out that the current federal government has reinforced its commitment to affordable housing in the mid-term review of the 12th Malaysia Plan, with the goal of building half a million affordable homes by 2025.
As such, he said Gagasan Nadi is optimistic about achieving its sales target for 2023, given the enthusiastic demand for the group’s affordable housing units in Selangor, namely Selindung Ulu Yam, Idaman Bukit Jelutong and Idaman Kwasa Damansara.
“The robust demand for affordable housing in Greater Kuala Lumpur supports our confidence in achieving our targets. We are committed to expanding the availability of affordable housing for the people.
“Furthermore, both Idaman projects are strategically located in high-growth vicinities in Selangor.”
In addition to these projects, Wan Azman said Gagasan Nadi has been awarded contracts to build affordable homes for Paramount Bhd in Kemuning Utama (Shah Alam) and Greenwoods Salak Perdana (Sepang).
For the second quarter ended June 30, 2023, Gagasan Nadi’s net profit rose to RM2.97mil from RM1mil in the previous corresponding period, while revenue improved to RM70.67mil from RM66.92mil a year earlier.
Going forward, Wan Azman said Gagasan Nadi is open to exploring opportunities in other states.
However we are focused and remain committed to delivering 10,000 affordable homes in Greater Kuala Lumpur by 2027. The high take-up rates of multiple affordable housing projects undertaken by Gagasan Nadi have reinforced our position as a builder of quality.
“We will continue to leverage on this strength to help address the issue of housing affordability in Malaysia.”
Wan Azman is optimistic that there is plenty of room for growth in Greater Kuala Lumpur’s affordable housing sector, given the robust demand for affordable homes, especially in areas with good public transportation connectivity.
“The various incentives and programmes offered by the government are conducive for our business expansion.”
Wan Azman said the company aims to launch the buyer’s registration for the first phase of its Idaman Elmina West project on the Lembaga Perumahan dan Hartanah Selangor Portal by the end of this year.
“This project will feature about 1,000 semi-furnished affordable homes with comprehensive amenities and excellent landscape, in tandem with Idaman Bukit Jelutong and Idaman Kwasa Damansara.
“Idaman Elmina will be part of the City of Elmina township in Shah Alam in the thriving Guthrie Corridor area, with close connectivity to the Guthrie Expressway and Subang Skypark.”
