PETALING JAYA (Sept 15): Property developer Land & General Bhd (L&G) expects demand for the property sector to remain stable, despite challenges such as the anticipation of rising interest rates as well as increasing cost of materials and labour. 

L&G managing director Low Gay Teck said the current overnight policy rate of 2.50% is still below the threshold of 3% recorded during the pre-Covid-19 period.

“We are still below the pre-Covid-19 rate. With the opening up of more economic sectors and businesses continuing to resume normalcy, we believe the interest rate hike will not drastically affect the property market.

“As far as the property sector is concerned, we do not see that as a big deterrent for buyers to keep investing and acquiring property,” he told the media after L&G’s 59th annual general meeting on Thursday (Sept 15).

On the issue of rising cost of materials and labour shortages, Low said the group’s projects are mostly in the advanced stages of completion, and the effect of increasing material cost and labour shortages is minimal.

“Our cost is mitigated as we are in the final stages of our development, and not in the early stages. For new projects, of course, feasibility studies will have to take into account the incremental cost of building construction,” he explained.

Meanwhile, Low noted that L&G plans to launch two new projects within the remainder of the financial year ending March 31, 2023, with an estimated gross development value of RM783 million.

On the ongoing Damansara Seresta condominium project in Bandar Sri Damansara, Low said the number of units sold and booked now stands at 327 units or 72% out of the 452 units offered.