SUBANG JAYA: Domestic construction costs are expected to continue rising and will likely put pressure on property developers to improve efficiency and protect margins.

Land & General Bhd managing director Low Gay Teck said that, in terms of selling prices, developers need to be more efficient to maintain their margins.

“Efficiency comes into play. Over time, selling prices will also need to move upwards because costs are rising. But it will be gradual. It is not something as direct as oil prices.

“When you look at petrol prices, they can go up and come down. It is not as straightforward in the construction industry.

“Fuel is one of the components that affects building costs, but it is not the entire product. Other cost components are not solely dependent on fluctuations in fuel prices and other commodities,“ he told reporters after the company’s annual general meeting today.

Low said the group’s residential projects cover both condominiums and serviced apartments, adding that both types of development are subject to the relevant housing regulations and requirements set by the authorities. “Our projects mainly target the mid-market segment, with some positioned in the upper mid-market segment.”

On earnings, Low said Land & General is focused on delivering its ongoing projects as the group records stronger financial performance and prepares to diversify into industrial property development.

“For the financial year ended March 2026, we achieved revenue of RM490 million, an increase of about 70% year-on-year, while operating profit rose 25% to RM87 million. Profit after tax was RM50.5 million, up 38% year-on-year.

“These are good results for the group, and operationally, our main focus for FY26 is on delivering our ongoing projects, particularly those launched in 2024 and 2025, which are now at various stages of construction.”

The group’s focus in Bandar Sri Damansara remained on its ongoing developments, including newly launched Laverra @ Seri Damansara Residences, Low said.

“We launched Laverra in May and started signing the sale and purchase agreements a couple of weeks ago. Bookings have been very encouraging, and I am pleased with the take-up. The project comprises 1,008 units and is expected to take about four years to complete.”

Low said the group is progressing with its development in Puchong, which topped out in May and is targeted for completion by mid-next year.

Beyond its residential developments, Land & General is preparing to embark on its first industrial property venture through its 2,500-acre landbank at Sungai Jernih, near Lembah Beringin.

Low said, “Our first phase will be an industrial park, and we are currently working through the necessary approvals. The rezoning process has been approved, and we are now moving toward submitting the development plans.

“Pre-marketing has already started. We have begun engaging with industrialists and investors, particularly those in the automotive and related upstream and downstream sectors.”

Low said the location could benefit from the growing industrial ecosystem around Tanjong Malim and nearby developments.

Land & General has previously said the 2,500-acre landbank is being repositioned for industrial park development, with the first phase comprising industrial plots and factory units.

According to the annual report filed to Bursa Malaysia, Land & General delivered a record financial performance in FY26, with revenue surging 70.6% to RM490.5 million from RM287.6 million in the previous year.

Profit after tax and minority interest climbed 38.7% to RM50.5 million from RM36.4 million a year earlier, marking the highest level of profitability the group has achieved in recent years.

The property development segment, the group’s key earnings driver, drove the strong performance, with operating profit rising 24.1% to RM77.1 million from RM62.2 million previously.
The strong result was underpinned by the robust progressive recognition of ongoing projects, including Damansara Livista, Residensi Kamelia, and The WYN Residences.

The group plans to launch projects with a combined estimated GDV of approximately RM1.5 billion in FY27.

Complementing this, the group’s education segment, comprising Sri Bestari Private School and Sri Bestari International School, continued to provide a dependable stream of recurring earnings, with operating profit growing 23.2% to RM19.7 million from RM16.0 million, supported by higher student enrolment and fee revisions.