Sime Darby Prop to offer more affordable properties amid market uncertainty

  • Property
  • Thursday, 27 Feb 2020

Acting group CEO Datuk Wan Hashimi Albakri (centre) said the developer will offer more affordable properties as that is where the demand currently lies.

KUALA LUMPUR: Sime Darby Property Bhd is retaining its 2019 sales target of RM2.3bil for this year, as the company expects 2020 to be a challenging year for the property market.

Acting group chief executive officer Datuk Wan Hashimi Albakri said the company will be launching more properties within the affordable and mid-range price points in strategic locations.

“We have a breadth of products with differing price ranges from affordable to high-end.

“But given the current market uncertainty, in light of the Covid-19 outbreak and political situation, we’re offering more affordable range of products as that’s where most of the demand is right now,” he said at a media briefing today.

Sime Darby Property achieved total sales of RM3.1bil in the financial year ended Dec 31,2019 (FY19) boosted by contributions from City of Elmina, Bandar Bukit Raja, Serenia City, Putra Heights, KL East and Cantara Residences.

Total sales had exceeded its target of RM2.3bil by 35%. In FY19, it launched 2,917 units with a combined gross development value of RM2.3bil in the year. Total unbilled sales was RM1.6bil as at Dec 31, 2019.

The group reported an improved net profit of RM598.5mil for the year, mainly due to higher contributions from its core business of property development and one-off gains.

Revenue for 2019 rose 30% to RM3.2bil compared with RM2.4bil in the same period a year ago. The group registered a one-off gain of RM245.5 million from the disposal of properties.

Sime Darby Property is the country's largest property developer in terms of land bank with 19,978 acres of remaining developable land, equivalent to gross development value of RM86.9bil.

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