Avaland Readies RM1 Billion Pipeline as Unbilled Sales Near RM909 Million

Launch Schedule and Pipeline

Avaland Bhd has lined up more than RM1 billion in new property launches for the second half of 2026, anchored by two flagship residential schemes in Kuala Lumpur's established neighborhoods. The developer will introduce Accent Petaling Jaya, carrying a gross development value of RM380 million, and Aetas Taman Desa, a luxury condominium tower with a GDV of RM677 million, according to the company.

The timing reflects a broader strategy to maintain annual launch volumes near RM1 billion while replenishing the pipeline that feeds revenue recognition over subsequent quarters. Avaland recorded RM152.3 million in pre-sales during the first quarter of 2026, a three per cent increase from the same period a year earlier.

Margin Outlook and Unbilled Revenue

Public Investment Bank expects Avaland's profitability to improve in the latter half of the year as the developer progressively books RM908.8 million in unbilled sales tied to projects that have moved into advanced construction phases. Four ongoing schemes are driving that recognition: Aetas Seputeh, Amika Residences, Meria, and Avalon in Cybersouth.

The firm projects Avaland will sustain annual pre-sales of between RM800 million and RM900 million, underpinned by the pipeline of launches and steady take-up rates across its urban infill sites. Revenue from completed units typically flows into the income statement as construction milestones are met, a cycle that accelerates once projects pass the halfway mark.

Land Acquisitions and Strategic Expansion

Avaland recently purchased a freehold parcel in Taman U-Thant, Kuala Lumpur, for RM86 million. The site is designated for a luxury residential development with an estimated GDV of RM707 million, adding to the company's inventory of high-value urban land.

When combined with its Jalan Putra project, which carries an estimated GDV of RM906 million, and the Accent Petaling Jaya site, Avaland's total landbank now spans 76.5 hectares. The aggregate GDV across all holdings stands at RM12.2 billion, providing a multi-year runway for launches.

The developer intends to roll out two to three new projects each year to keep unbilled sales at levels that support consistent earnings growth. That cadence aligns with absorption trends in Greater Kuala Lumpur, where demand for mid- to high-rise condominiums remains concentrated in well-connected precincts close to public transport and commercial hubs.

Valuation and Sector Context

Public Investment Bank maintained its "Outperform" recommendation on Avaland with a target price of 30 sen, applying a discount of roughly 60 per cent to the company's book value. The discount mirrors valuation multiples commonly seen among Malaysian property developers, reflecting a sector-wide preference for conservative pricing in light of interest-rate sensitivity and household affordability constraints.

The firm's stance suggests confidence that Avaland's execution on its launch calendar and its ability to convert unbilled sales into recognized revenue will support share-price appreciation from current levels. The developer's focus on infill sites in established Kuala Lumpur neighborhoods also reduces land-acquisition risk and shortens the time from launch to handover, a dynamic that can compress working-capital cycles.

Avaland's pipeline is notable for its concentration in freehold or long-leasehold parcels within mature catchments, a positioning that appeals to owner-occupiers and investors seeking capital preservation. The Taman U-Thant acquisition and the Jalan Putra site both sit in legacy residential enclaves that command premium pricing, while Petaling Jaya and Taman Desa offer mid-market density play near established infrastructure.

As the company moves through its launch schedule in the coming months, attention will center on take-up velocity and the pace at which unbilled sales translate into billings. Those metrics will determine whether Avaland can sustain the RM800 million to RM900 million pre-sales band that underpins Public Investment Bank's earnings forecast and valuation framework.