Due to the challenging market environment in light of the COVID-19 outbreak, OSK Holdings Berhad (OSK) has realigned its focus to avoid further losses this year. OSK aims to strengthen its precautionary and recovery measures through land banking and improving its hospitality assets.
Recovery Measures From Slow Growth
Focusing on Land Banking and Fewer Launches
Placing its priority on long-term growth, OSK has decided to redivert its development plans towards land banking for future developments. By the end of 2019, OSK had accumulated developable land with a total estimated value of RM10.5 billion in Malaysia.
Due to the unfavourable property market, OSK will be launching fewer projects this year. Instead, the focus will be channeled towards clearing overhang units before embarking on new launches.
Improving Hospitality Assets
Greater emphasis on OSK’s hospitality assets is a response to increasing competition in the tourism industry. Airbnb, boutique hotels, and homestay properties have emerged as fierce competitors that have adversely affected the business outlook of OSK.
In response, OSK is partnering with Hilton Worldwide to enhance and rebrand Swiss-Garden Damai Laut in Lumut, Perak. Rebranding projects will be managed by DoubleTree by Hilton.
OSK has also diverted RM35 million towards renovation projects that will commence this year. Rest assured, buyers can continue to look forward to new launches by OSK this year despite the slow growth in the Malaysian housing market.
Interested in new property launches in 2020? Contact our in-house agents to find out more!
Call us at +60 16-299 1366 now!
Source: NST
