KUALA LUMPUR: Hua Yang Bhd is anticipating a better second half of the year for the property market, though it is not ruling out the possibility that it may need to delay some launches again.

“The remainder of the year is still very challenging. That’s why we still continue to look upon the conditions.

“If the conditions are not very conducive, we will still consider to delay our projects as well. But looking at the current situation, we find that it is very encouraging,” Hua Yang financial controller Joe Tan Hwai Lun told reporters after a media briefing yesterday.

He noted that Bank Negara Malaysia’s (BNM) decision to cut its interest rate had helped the real estate market. In July 2016, BNM reduced the overnight policy rate from 3.25% to 3%.

Hua Yang, which focuses on affordable play, had originally planned to launch some RM700 million worth of launches in the last financial year ended March 31, 2016 (FY16), but deferred near to RM400 million of that eventually.

Yesterday, the group introduced one of its key development projects, Asthetica Residences, a serviced apartment project with a gross development value (GDV) of RM368 million that it is targeting to launch by the third quarter of this year.

The project, which was initially slated to be launched in the middle of last year, is now part of its planned launches of RM721 million worth of launches for FY17.

Meanwhile, Tan shared Hua Yang’s plans to raise its dividend payout, which dived to five sen in FY16 from 13 sen in FY15, should the financial results for FY17 prove to be promising.

The developer’s dividend payout fell previously even though earnings growth was relatively flat year-on-year, as it needed to “conserve cash for landbanking opportunities”.

“When it comes to rewarding shareholders, paying dividends is always our priority,” Tan said, but noted that the group had been balancing between paying dividends and the need to expand its land bank for the sustainability of its business.

“We paid 12 to 13 sen [in FY14 and FY15]. The payout ratio was about 39% to 40%. If the financials [for FY17] are promising, then we will continue paying back shareholders,” he said. However, he declined to commit on whether the group’s payout this year can revert back to higher ratios seen previously.

On a separate issue, Tan said Hua Yang aims to maintain its remaining GDV at RM5 billion. The group’s current undeveloped land bank stands at 517 acres (209.22ha), and has a potential GDV of RM4 billion.

Its hunt for more lands will focus on the Klang Valley, Penang, Johor Baru and Ipoh.

On types of project, the group plans to continue focusing on affordable properties, which it defines as those priced under RM500,000.