PETALING JAYA: Sime Darby Property Bhd is now more optimistic on the outlook of the property sector from earlier this year backed by strong anticipation of sales exceeding RM2.4bil in 2021.
Group managing director Datuk Azmir Merican said so far, the company has achieved RM1.9bil or 80% of the financial year 2021 (FY21) sales target.
“That is the indicator of performance and the momentum.
“We are very positive of exceeding the sales target and having the digital capabilities in executing sales online, I think consumers find it easy to transact for our products that they know and understand.
“Also, with strong bookings and steady profit margins which are holding at almost 25%, this is an important factor that we are still efficient in this environment,” he said at a virtual media briefing on the company’s third quarter (Q3) FY21 financial results ended Sept 30.
Besides that, he said, the company also holds very low unsold completed stock at around RM400mil, which according to Azmir is very manageable.
Commenting further on sales, he said the company was able to secure good sales because it had the right product and right pricing that fits the demand and supply for the right target market, despite peoples’ tight finances during this pandemic period.
“We still have all kinds of buyers ranging from new buyers, small to big families – they are still coming to our townships. I think with the pandemic, people think about green and holistic development when making decisions.
“I also think there is pent-up demand to buy homes, now that the situation is more stabilised compared with six months ago,” he said, adding that the current low overnight policy rate of 1.75% and the Home Ownership Campaign (HOC) that runs until the end of this year also helped with the sales.
However, since there is no HOC next year, Azmir expects the general demand for property would moderate, especially in the first quarter of 2022, and gradually improve again in the following quarters.
For Q4 of 2021, the property developer is launching RM1.6bil worth of products in gross development value. This will comprise 1,856 units, with the landed residential being the main product, followed by the emerging industrial products and residential high rise. ― Bernama