Sime Darby Property optimistic on outlook, expect sales this year to exceed RM2.4b

A general view of the Sime Darby Property headquarters in Petaling Jaya October 2, 2019. — Reuters pic
A general view of the Sime Darby Property headquarters in Petaling Jaya October 2, 2019. — Reuters pic

KUALA LUMPUR, Nov 26 ― 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 RM2.4 billion in 2021.

Group managing director Datuk Azmir Merican said so far, the company has achieved RM1.9 billion or 80 per cent of the financial year (FY2021) target sales.

“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 per cent, this is an important factor that we are still efficient in this environment,” he said in a virtual media briefing on the company’s third quarter (Q3) FY2021 financial results ended September 30, 2021 today.

Besides that, he said, the company also holds very low unsold completed stock at around RM400 million, which according to Azmir is very manageable.

Commenting further on sales, he said the company were able to secure good sales because it has 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 a 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 (OPR) of 1.75 per cent and the Home Ownership Campaign (HOC) that runs until the end of this year also helps with the sales.

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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.

“But, over the long term, we remain optimistic because we have new industrial products which are quite healthy, good residential landed products and more integrated products that will need the right place, right township and right price.

For Q4 2021, the property developer is launching RM1.6 billion worth of products in gross development value (GDV) comprising 1,856 units, with the landed residential being the main product, followed by the emerging industrial products and residential high rise.

However, there was no sales target set as yet for 2022, said Azmir. ― Bernama


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