Bina Darulaman Bhd (BDB) and Lagenda Properties Bhd will construct affordable houses in Sungai Petani, Kedah, beginning in the second quarter of next year.
The project, known as Darulaman Lagenda, will be developed across 93.07 hectares (ha) and will include the construction of 2,500 affordable housing units.
The township will be developed by BDB Lagenda Sdn Bhd, a 50:50 joint venture company set up by BDB's wholly-owned subsidiary BDB Land Sdn Bhd, and Lagenda Properties' wholly-owned unit LPB Development Sdn Bhd.
BDB and Lagenda Properties inked the JV agreement in April this year to develop the township.
Darulaman Lagenda will have a gross development value (GDV) of about RM550 million, according to BDB president and group chief executive officer Faris Najhan Hashim.
Faris said that Phase 1 of the township development would consist of 282 units of affordable single-storey houses spread across 11.11ha, commanding a GDV of RM57.6 million.
The estimated selling price for the units is between RM180,000 and RM250,000, he said in a statement.
Phase 1 will take about two years to complete, following which, BDB Lagenda will commence construction on the next phases of the township development covering a total land area of 80.1ha.
The subsequent phases, according to Faris, would entail the construction of 2,212 units of single-storey terraced and cluster houses, with an estimated GDV of RM500 million.
Faris is confident with this development, citing the high demand for affordable housing in the Sungai Petani area which far outweighs the supply.
He hoped that through this JV partnership with Lagenda Properties, both parties would be able to offer first-time homebuyers an opportunity to purchase their own homes at affordable prices.
"We are still facing the Covid-19 pandemic crisis which has also affected the real estate market. We expect a surge in the property market performance in the fourth quarter of 2021 due to the initiatives taken by the government through the National Recovery Plan," he said.
Meanwhile, Lagenda Properties managing director Datuk Jimmy Doh when contacted, said that the houses will costs 30 per cent cheaper than its neighbours in Sungei Petani.
"Our strength is that we are able to keep our cost low, and therefore sell lower than others," he told NST Property.