Paramount urges govt to help expedite approval of property projects

• Group chief executive officer Jeffrey Chew Sun Teong said in a Budget 2025 wishlist response that project delays would significantly increase costs while benefitting banks through accrued interest.

KUALA LUMPUR (Aug 29): Property developer Paramount Corp Bhd (Paramount) would like the government to continue taking a balanced approach to support property sector growth, especially in expediting project approvals.

Group chief executive officer Jeffrey Chew Sun Teong (pictured) said in a Budget 2025 wishlist response that project delays would significantly increase costs while benefitting banks through accrued interest.

"We can build more homes, but it will be more difficult for people to find a property as it gets more expensive, especially if getting approvals for the building and construction process becomes longer.

"The government should make the industry more conducive. We [developers] are not asking for any subsidies, but we hope the government can incentivise the authorities to try and accelerate the process [approvals] so that we can launch and complete our project on time," he said after an investor and media presentation for the first half (1H) 2024 here on Thursday.

Elaborating on the group’s 2H 2024 plans, he said Paramount has targeted to launch four more projects, including new phases of existing projects, with a projected gross development value (GDV) of RM700 million.

Expected launches in the third quarter of 2024 (3Q 2024) include Greenwoods Salak Perdana Senna in Sepang, comprising semi-detached cluster townhouses.

He is also confident that launches of RM1.7 billion as of June 30, 2024 would yield strong sales and contribute positively to the group’s financial performance, double its full-year 2023 of RM886 million.

It launched RM81 million worth of properties in 1Q 2024 and RM1.6 billion in 2Q 2024.

“Our 2024 launches are high-quality products at premium locations where we have a presence for several years.

“Our six-month sales of RM638 million also surpassed 1H 2023 with the Ashwood project, launched in May 2024, contributing more than 60% of sales,” he said.

The group has billed sales of RM1.4 billion as of 30 June 2024 with 168.71 hectares (416.9 acres) yet to be developed.

Besides its property segment, the group is also considering an initial public offering (IPO) for its coworking segment, Co-labs Coworking, within the next three to five years.

"We have about 167,000 square feet [sq ft] currently, about 15-20% of the coworking space market share of about a million sq ft.

"Although this segment is about 5% of our core [property] business, we think we can grow it aggressively to about 20-25%, given that more people today are accepting this as the way to go because it is cheaper," Chew added.

Paramount Property​ is a strategic partner with EdgeProp START, featuring the Bukit Banyan, Savana @ Utropolis Batu Kawan, Greenwoods Seraya at Salak Perdana, The Atera, and Sejati Lakeside 2 developments. All Paramount Property homebuyers also get to enjoy rewards worth up to RM18,888.  

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