23-06-2025
Avaland confident of growth prospects for its new developments
Solid pipeline: Apollo says the company is optimistic that its launches in 2024 and 2025 will propel the next phase of its growth plans.
PETALING JAYA: Property developer Avaland Bhd has stepped into its current financial year with a steady performance, recording a net profit of RM20.2mil on the back of RM179.5mil in revenue for the first quarter ended March 31 (1Q25).
The performance in 1Q25 reflected the transitional phase of Avaland's project portfolio as contributions tapered from developments such as Aetas Damansara, Alira Subang Jaya, and Sanderling 1 approached completion.
Meanwhile, recently launched projects are still in the early stages of sales and construction and have yet to contribute significantly to earnings.
Nonetheless, the group was able to partially offset the impact of the reduced revenue through effective cost management in the quarter.
Avaland chief executive officer Apollo Bello Tanco said, 'We started this year on stable ground with RM147.5mil worth of new sales in the first quarter, supported by encouraging take-up from phase two of Casa Embun, Alora Residences and Meria.
'Thus far, we have launched two projects this year – in February the first phase of Meria, which is a commercial hub with a gross development value (GDV) of RM123mil at our Cybersouth township, and Tower B of Alora Residences with a GDV of RM220mil in April.
'Looking ahead, we aim to launch an additional RM934mil worth of projects this year, bringing our total launches for the year to RM1.3bil. We are optimistic that the launches in 2024 and 2025 will propel the next phase of our growth plans.'
As of March 31, the group's unbilled sales grew to a new high of RM944mil from RM900mil as of the end of last year, providing the group with strong earnings visibility for the years ahead.
Speaking on the group's prospects going forward, Apollo said 'The outlook for the property sector remains positive, supported by sustained demand for residential property.
'Loan applications for property purchases rose to RM106bil in 1Q25, from RM104bil in the corresponding period last year, reflecting confidence underpinned by Malaysia's stable interest rate environment.
'In addition, the latest incentives announced in Budget 2025, including a higher allocation under the Housing Credit Guarantee Scheme and tax relief of up to RM7,000 for homes priced at RM750,000 and below, are expected to further stimulate demand, particularly among young families and first-time homebuyers.'
'The group remains cautiously optimistic about its prospects, supported by the robust demand for its projects which are strategically located and offer strong value propositions aligned with market needs.
'Additionally, the group's existing land bank of 77.7ha across the Klang Valley, with an estimated GDV of RM11 bil, provides earnings visibility for the next 10 years.
'To further strengthen its position and ensure sustainable growth, the group is actively exploring strategic land acquisitions to expand its land bank and enhance future earnings potential.'
