IJM Land may raise LIGHT Waterfront selling prices

IJM Land Bhd may raise selling prices for properties under its RM6.5 billion “LIGHT Waterfront Penang” mixed development against a backdrop of improving consumer sentiment as the job market improves in the island state, said RHB Research.

“This is not a surprise to us given its unique status as one of the rare waterfront developments in Malaysia as well as its strategic location.

“It is positive to the LIGHT project as strong sales recorded will boost investors’ confidence on the whole project and eventually increase the company’s bargaining power (and hence, the gross development value for the project),” it wrote in a note yesterday.

The LIGHT Waterfront Penang is located on a 60.8ha site near the Penang Bridge within the eastern coastline enclave of Penang island. According to IJM Land’s website, the project comprises three phases which include residential and office units, besides retail and hotel components.

Phase one, an entirely-residential initiative comprises “The Light Linear”, “The Light Point” and “The Light Collection”.

According to RHB, by virtue of the strong sales seen in The Light Linear, IJM Land may increase the initial selling price for The Light Point condominiums by up to 20% to some RM600 per sq ft from RM500 per sq ft. These high-rise units have built-up areas of between 1,800 sq ft and 4,000 sq ft.

“However, we reckon that the selling price could potentially hit RM700 per sq ft given that E&O Property Development Bhd’s Seri Tanjung Pinang serviced suites are currently selling at about RM780 per sq ft ,” said RHB which kept its earnings estimates for IJM Land in financial years ending March 2010 till 2012, pending further details on the final selling price for properties under the project.

The research house’s fair value of RM2.10, and outperform rating for the stock were also unchanged.

IJM Land shares fell three sen to close at RM1.68 yesterday. - by Financial Daily (The Edge Malaysia)

4 comments

August 6, 2009 at 3:14 PMjeremy tan

All the financial banks heavily invested in their shares! So, basically they can't afford to fail. The light project is not worth investing.

Global warming will increase the sea levels in the near future. Ice caps are melting at a rate faster than we can predict.
Imagine having a property right in front of the sea (waterfront).The project being a reclaim land as well.

Cheers,
Jeremy

 
August 16, 2009 at 7:48 PMVoice

Looking at the 2 buildings in China and Taiwan just within the last 1 month.

The building standing vertically can just laid down flat on the ground.

Do you have confident on the IJM buildings on a 2-year-old reclaim land???

Having said that, the Light Linear has been sold out. I'm not sure whether IJM is lucky or the purchasers are pushing their luck.

 
August 19, 2009 at 5:12 PMsokohaw

Come on......RM700/sq ft on reclaim land?? If you think it's worth, go ahead and buy yourself. For me, RM300/sq ft is reasonable. IJM is the culprit anyway, PLEASE unite and stop purchase from them! Let their staffs/friends/relatives feel the pain! All sold out on first day in current situation? You must be joking, IJM!!!

 
August 30, 2009 at 9:09 PMVoice

Sokohow, you're right.
Arrogant developer must be taught a lesson.

Their projects are mostly on a "NEWLY" reclaim land anyway.

Unlike those which has been reclaimed at least 10 years ago.