PETALING JAYA: Guocoland (Malaysia) Bhd
believes that challenges remain in the domestic property sector from elevated interest rates and rising construction costs leading to depressed profit margin.
In a filing with Bursa Malaysia, the company said property sales remain challenging due to an oversupply of properties in different markets and segments.
For the first quarter ended Sept 30, 2024, Guocoland’s net profit dropped to RM2.32mil from RM4.79mil in the previous corresponding period, while revenue dropped to RM60.34mil from RM119.15mil a year earlier.
Guocoland said the lower revenue was mainly due to reduced contribution from the property development division, which was partially offset by better performance in the hospitality and property investment division.
“The performance of the hospitality division improved in the quarter under review with higher occupancy and better average room rates.
“The performance of the property investment division also saw improvement with increased average rental rates and better cost management in our DC Mall,” it said.
