Lim Hock SanOFFICIALLY established in the year of the Asian Financial Crisis in 1997, LBS Bina Group Bhd (LBS) has gone through market highs and lows in the property development sector to emerge as one of the biggest property players in Malaysia.

Tan Sri Lim Hock San took over the reins of the group from his father in 2001 and has led the expansion of the group’s property development business. Prior to this, the Lim family was more focused on running a lorry transportation business as well as a construction business.

“We started property development with projects around Klang Valley in Seri Kembangan, Bukit Serdang and Kota Perdana, where my family originally owned some land,” says Lim.

With outstanding entrepreneurship and equipped with years of management and technical expertise, Lim has led LBS and its subsidiaries to make their mark in the country’s property development scene.

Among LBS’ significant projects is Bandar Saujana Putra (BSP). BSP is a township project sitting on 850 acres next to Puchong, Selangor.

Lim was the inaugural Platinum Entrepreneur Award winner by SMI Association of Malaysia in 2011; the Prestigious Entrepreneur of the Year 2012 title holder at the Asia Pacific Entrepreneurship Awards; and was conferred the World Chinese Economic Summit (WCES) Lifetime Achievement Award for continued efforts in enhancing bilateral relations between Malaysia and China (Guangdong Province) in 2015, among other awards.

 

TheEdgeProperty.com: Building and selling homes — what was it like then and now?

Tan Sri Lim Hock San: LBS Bina Bhd was established in 1997. It was also the year that the Asian economic crisis broke. We built very affordable homes to suit market conditions at that time. Can you imagine we priced a 18ft by 60ft landed house at RM135,000. In 2002, we priced a 850 sq ft apartment unit at only RM150,000.

We were able to do that (build cheaper houses) because (material and construction) costs were low. The construction cost used to be about RM30 to RM40 psf in 1997, but today it is at RM100 to RM130 psf. The construction cost has gone up three times in 20 years.

No matter what, the property industry will not fall because it (property) is something that everyone needs no matter when. It is also one of the safest investments that one could make. If your houses cannot sell, it is hardly the market’s problem, but it could be a problem with your product, location or pricing. It could be that you do not have a nice track record so people are not confident with your project.

 

How many homes have you built?

We have built at least 30,000 landed and high-rise residential properties since 1997. We sell at least 2,000 properties every year. We did not see a slowdown in transactions in the past two years. LBS is moving forward stably and steadily.

We will be building more (properties) in future. We have two over 600-acre township developments in Dengkil, Selangor and in Kulai, Johor. Both developments are waiting for approval from the authorities.

We will also be launching another residential project in Bukit Jalil and the remaining residential blocks in Bandar Saujana Putra 21 (BSP 21).

 

What was your most memorable project and why?

Every project has memorable points. If I have to choose one, it would have to be Bandar Saujana Putra (BSP). BSP is the project that makes me proud and happy especially because of its transformation from a rough barren site into a comprehensive township today.

In 2003, we ran out of development land after having fully developed the lands we had in Serdang and Balakong. So we decided to work together with the government and develop an 850-acre land next to Puchong into the BSP township.

I still remember I stood on the land after we had signed the agreement with the government and all I could think of was that I must build an interchange to make the place accessible.

Since then, we started developing one phase after another. Today, we have built 9,100 properties there. About 1,000 properties are under construction and, in the future, we will build another 7,000.

We are also planning a shopping mall, offices and hotels. The township development should be fully completed in five years.

BSP is important because it is the biggest project for LBS so far. This project gave us the experience in developing a township.

 

Buyers are getting younger. How do you engage them?

We study their needs and requirements and build accordingly. For example, our 10-block BSP 21 has over 70 facilities, you name it, we got it. BSP 21 also has 28 shoplots that are managed by LBS. This is to ensure that the tenants are those that the residents will welcome.

 

What are your investment tips for first-time homebuyers?

With the property market slowdown and with developers still launching new projects, now is a good time to buy property because now it is a buyer’s market. Buyers will have more choices, more time and bargaining power to get a good deal.

However, first-time homebuyers should look at the concept, future appreciation potential of the development, as well as the reputation of the developer. Cheap is not necessary good. The development concept, facilities and nearby amenities are important too.

Tips

 

How key is social media to your business — are you on social media?

LBS is very active on social media. I myself am very active on it because it is fast, informative, easy to use and convenient.

Social media is important to LBS to gain publicity and in building our brand. We usually share company activities, news, and launches via social media.

However, it doesn’t mean that social media will take over traditional media because they serve different groups of consumers. Social media serves the youth, while traditional media serves older working adults.

 

Your property outlook for 2016/2017?

2016 has been a challenging year. Sad to say, 2017 will likely be another challenging year for Malaysia.

However, anytime is a good time for the property industry. The keys are location, product and pricing. If you (developers) put enough effort to study what is needed, selling your project shouldn’t be a problem.

I also do not foresee property prices going down anytime soon because construction and building material prices do not seem to be reducing. As a developer, I will not sell at cost price. If the market is really bad, we (developers) can hold the supply till demand is strong again. Hence, developers are unlikely to lower house prices.

 

What is your aspiration for the Malaysian property sector?

As Budget 2017 is going to be announced soon, I believe the government will announce friendly policies, especially housing policies that would benefit the middle income group. I also hope to see Bank Negara Malaysia loosening the lending guidelines because the Malaysian market is not as hot as it has been reported. The strict lending policy is also the biggest reason the market is stagnant now.

 

● Tan Sri Tan Seng Leong (BCB Bhd): Look out for signs of recovery

● Tan Sri Lee Kim Yew (Country Heights Holdings Bhd): Land is the key to accumulate wealth

● Tan Sri Liew Kee Sin (EcoWorld): Achieve greater heights by embracing technology

● Tan Sri Lim Kim Hong (I-Bhd): Well-planned projects less affected by negative factors

● Tan Sri Lim Kang Hoo (Iskandar Waterfront Holdings Bhd): Act on opportunities from the HSR link

● Tan Sri Leong Hoy Kum (Mah Sing Group Bhd): The ability to adapt to change is crucial

● Tan Sri Mohamad Salim Fateh Din (MRCB): Malaysia’s property market will continue to be dynamic

● Tan Sri Eddy Chen (MKH Bhd): We need more liveable homes

● Tan Sri Ong Leong Huat (OSK Property): Build homes according to buyers’ wants and needs

● Tan Sri Lim Soon Peng (Titijaya Land Bhd): Affordability — key to homebuyers’ needs today

● Tan Sri Danny Tan Chee Sing (Tropicana Corp Bhd): Engage customers through social media wisely

 

This story first appeared in TheEdgeProperty.com pullout on Aug 26, 2016, which comes with The Edge Financial Daily every Friday. Download TheEdgeProperty.com pullout here for free.

SHARE
RELATED POSTS
  1. Scientex got a reasonably good land deal, say analysts
  2. Selangor, IJM Corp, Lim Seong Hai Capital to study potential upgrades to road connectivity
  3. Development on Malay reserve land in Selangor only for public infrastructure projects — MB