KUALA LUMPUR: The demand for homes in Malaysia has continued to grow, with property loan applications increasing by 3.3 percent in the first half of 2024.

This equates to an increase of RM307 billion compared to the same period last year.

The stable interest rate environment, supported by Bank Negara Malaysia's decision to maintain the Overnight Policy Rate (OPR) at 3.0 per cent, has been favourable for the overall property sector, according to Avaland Berhad's chief executive officer, Apollo Bello Tanco.

"Moreover, the reinforced Malaysia My Second Home policy attracts the interest of foreigners for projects priced above RM600,000, and we are optimistic that it would help drive the demand for our AVA Prime and AVA Luxe products," he said in a statement.

Apollo said that the company remains cautiously optimistic of its prospects with the robust demand for its projects amidst its strategic location, strong value propositions, and ability to meet the market's requirements.

The company has a land bank of 194.4 acres across the Klang Valley with an estimated gross development value of RM11.5 billion that would provide earnings visibility for the next 10 years, he said.

Avaland maintained its upward trajectory in its second quarter ended June 30, 2024 (2Q2024) as it reported a net profit of RM21.6 million, increasing 94.3 per cent from RM11.1 million in the previous corresponding quarter.

The improved bottomline was achieved on the back of 91.8 per cent higher revenue of RM218.3 million in 2Q2024 against RM113.8 million in 2Q2023.

The increase in revenue was mainly contributed by advanced construction work progress from its ongoing projects, coupled with commendable take-up for the recently launched Casa Embun Phase 2 and Amika Residences developments.

For the six-month period ended June 30, 2024 (6M2024), Avaland's net profit grew by over threefold to RM42.8 million from RM11.2 million, while revenue more than doubled to RM432.9 million against RM190.4 million in the previous corresponding period.

"Our sustained growth for our year-to-date financial performance is a testament to the market's confidence in our products and our ability to introduce homes that cater to the demands of our customers.

"As such, our property sales have risen by 78.6 per cent to RM476.3 million in 6M2024 as compared to RM266.7 million recorded in the corresponding period in the previous year," he said.

As of June 30, 2024, Avaland's unbilled sales stood at RM954 million, up from RM863 million as of end-2023, providing the company with strong earnings visibility over the next few years.