KUALA LUMPUR (Bernama) -- Sime Darby Property Bhd is looking for alternative materials to cope with the rising steel and cement prices, which has impacted the construction industry.
Group managing director Datuk Azmir Merican said at present, the company was able to absorb the increasing material costs.
"We are looking at how our procurement (staff) can source the right materials. We are even looking for substitute or alternative materials.
"So, as much as possible, we will try to absorb the cost increase rather than passing it on to the customers," he told a briefing on Sime Darby Property's performance for the first quarter (Q1) of the financial year ending Dec 31, 2021 (FY21) today.
He said the attractiveness of a property might disappear if its price was increased.
"So, one of the alternatives is to look at materials that go into the design. That is among the things we are working on," he added.
Overall, he said the property market would be better this year compared to last year, depending on the COVID-19 vaccination progress in the country.
As for Sime Darby Property, he said the company was planning to launch RM3 billion gross development value (GDV) products in the remaining quarters of this year.
In this quarter (Q2) alone, projects with GDV of RM1.64 billion will be introduced.
He said the high-rise Jendela Residences located in the flagship KLGCC Resort township, with a GDV of about RM898 million or about 54.9 per cent of the total GDV, would be launched in the quarter.
Meanwhile, residential landed projects at City of Elmina, Bandar Bukit Raja and Bandar Ainsdale will also be launched.
The group will also introduce a new industrial township measuring more than 162 hectares and a commercial project.
In Q1 FY21, Sime Darby Property Bhd's net profit soared to RM60.61 million from RM2.72 million in Q1 FY20, contributed by the recovery in the property development segment.
Revenue jumped 23.7 per cent to RM589.49 million from RM476.74 million, with sales of RM630.2 million, it said in a filing with Bursa Malaysia today.
The group’s financial resilience is also underpinned by unbilled sales of RM1.7 billion and total bookings of RM0.8 billion secured as at March 31, 2021.