IREKA Corp Bhd is optimistic that the property market will ride out the current uncertainties and be on the upstream in four to five years, despite a challenging environment, executive director Lai Voon Hon said.

He said there will be a slowdown in the property market next year in the midst of the current challenges globally, but prices will remain stable.

"Compared to other major markets around the world, Malaysia did not experience a rapid surge in property prices. Annual price increases for properties here have been relatively moderate. As such, Malaysian property prices will hold up relatively well with possibly mild correction in certain 'overpriced' areas," Lai told Business Times.

On earnings, Lai previously said Ireka is optimistic that net profit and revenue will improve for the fiscal year 2009 based on the value of works in hand.

As at September 30 2008, it had RM1.14 billion worth of jobs in hand, of which about RM890 million remained outstanding. The projects will see the company through 2011. For the first six months of its current financial year ending March 31 2009, it posted a net loss of RM1.2 million on revenue of RM134 million due to the surge in the costs of construction materials.

Last year, it made a net profit of RM152.9 million on revenue of RM299.7 million, driven largely by extraordinary gains from the sale of assets.

Developers in general expect the second half of their performance to improve following a drop in raw material prices.

Ireka, meanwhile, is preparing to work on new projects next year through its 19.6 per cent investment in London-listed Aseana Properties Ltd, which could help boost earnings.

This includes a 32ha seafront resort and residential development in Kota Kinabalu, Sabah, worth more than US$200 million (RM728 million), and, the Queen's Place and Hi-Tech Healthcare Park, worth a combined US$650 million (RM2.36 billion), in Ho Chi Minh City, Vietnam.

In the pipeline are five projects in Ho Chi Minh City, Hanoi and Danang worth US$1.3 billion.

On its Sandakan Harbour Square project in Sabah, Lai said Ireka hopes to complete phases three and four, worth RM195 million, by the end of 2010.

Under construction is a shopping mall and a five-star hotel (Four Points by Sheraton). It is a 60:40 joint development between Aseana and Geofusion Resources Sdn Bhd via a joint venture firm, ICSD Ventures Sdn Bhd.