BINAIK Equity Bhd has received overwhelming response to its ongoing mixed property development projects despite uncertainties in the Johor property market.

Its managing director Yeo Soo Sia said despite reports that Johor had the worst property overhang in the country, the company had not been greatly affected.

He said the company recorded almost 100% sales for its 400 houses in Nusa Jaya Emas housing scheme near Gelang Patah and another 400 units in its Bukit Gambir project in Muar.

Yeo said Binaik believed that pricing and location were not the only determining factors in selling houses as buyers were also looking for quality finished products and timely delivery.

He said another 400 and 1,300 units of mixed residential properties were slated for the Gelang Patah and Muar projects and these would keep the company busy for another two to three years.

''We have sizeable projects in the pipeline which are set to take off shortly but they might need re-scheduling in light of the present economic climate,'' Yeo told StarBiz after Binaik AGM and EGM on Friday.

He said if the company were to launch new housing schemes, it would only go for 100 units or less per phase, adding that the days where launches were done in ''pomp and pageantry'' were over.

Yeo said besides the current labour shortage faced by the construction industry, the other main factor worrying developers was the rise in prices of raw materials, especially steel, bricks and cement.

At the EGM, shareholders approved the proposed acquisition of 92.35 acres for RM26.951mil by Binaik wholly-owned subsidiary Jayaplus Bakti Sdn Bhd from How Guan Credit Sdn Bhd.

The land involved is located about 22km from Johor Baru city centre.

It is accessible via the Johor Baru-Pontian highway, with frontage along the old Johor Baru-Pontian road which branches off from the said highway.

''This is a good piece of land as it is situated near the Pulai Springs Resort which could be an added attraction to buyers,'' Yeo said.

He said the proposed land acquisition would be funded by RM13.5mil in bank borrowings and the balance of RM13.451mil from internally generated funds.

For the financial year ended Dec 31, 2002, Binaik turnover increased to RM91.08mil from RM62.54mil previously.

Meanwhile, its pre-tax profit rose to RM29.91mil from RM19.69mil.

Source : The Star  20/5/2003