SimeProp to review prices of unsold units


Sime Darby Property Bhd reported slightly higher net profit of RM640mil in the financial year ended June 30, 2018 mainly due to higher contribution from concession arrangement segment and two sale transactions.

KUALA LUMPUR: Sime Darby Property Bhd is looking at undertaking a tactical price review of its unsold units after net profit for the three months through September dropped 93% to RM28.8mil.

The company's strategy is only to be expected due to the high level of unsold inventory units. Coupled with low absorption rates due to the current economic uncertainties and tight lending conditions, this has resulted in very competitive marketing promotion and price discounting by property developers.

Sime Darby Property told Bursa Malaysia today that it is currently undertaking a “tactical price review” of all unsold inventories particularly the completed development units.

“Budget 2019 has provided a number of initiatives to support home ownership. The Group envisage that these positive developments would provide a boost to the property market,” it said.

Net profit for the three months through September dropped 93% to RM28.8mil compared with RM421mil made in the same corresponding quarter a year ago.

Revenue was little changed at RM480mil, the company said in a filing with Bursa Malaysia today.

The weaker performance was largely due the share of loss of Battersea of RM5.7mil against a profit of RM86.8mil a year ago, as well as the lack of several one-off gains that boosted its results previously.

“Excluding the share of results of joint ventures and associates, property development performance registered a marked increase of 69.6% mainly contributed by higher sales and development activities at Serenia City and Denai Alam townships, Cantara Residences and Melawati Corporate Centre,” it said.
Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

   

Next In Business News

Myanmar, with US$6b in foreign reserves, is doing utmost to stabilise currency
Thailand approves US$1.64b more support measures
Edra wins bid to build 600MW power plant in Bangladesh
Malaysia's retirement scheme third in Asia
UK reveals US$13.3b of inward investment in green push
Bitcoin pushes toward record before debut of futures-based ETF
Hong Kong's new China futures create bourse history, but lag rival Singapore
Chinese property bonds firm after Kaisa and Sunac make coupon payments
CIDB hopes for funds to boost tech in construction
IOI Corp offers to buy debt notes

Others Also Read


Vouchers