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KUALA LUMPUR: Sime Darby Property Bhd plans to lower the prices of its unsold units after the sharp decline in net income for the quarter ended September 30th.
The high number of unsold inventory in the market, coupled with low absorption rates due to current economic uncertainties and restrictive credit conditions, has allowed real estate developers to benefit from a very competitive marketing opportunity and from a price reduction.
In response, Sime Darby Property informed Bursa Malaysia today that it is currently conducting a "tactical price review" of all unsold stocks, particularly completed development units.
"The 2019 budget provides for a number of initiatives to support homeownership. The Group expects these positive developments to stimulate the real estate market, "he said.
Net profit for the three months of September decreased by 93% to 28.8 million RMB, compared to 421 million RMB achieved in the same quarter of the previous year.
The turnover has changed little to 4 million rupees, the company said in a document filed today with Bursa Malaysia.
This decrease is largely due to Battersea's share of the loss of 5.7 million rupees against a profit of 86.8 million rupees a year ago, as well as the absence of several one-off gains that had previously boosted his results.
"Excluding the share of the results of joint ventures and associates, property development performance increased significantly by 69.6%, mainly due to higher sales and development activities in the cantons of Serenia City and Denai Alam, Cantara Residences and Melawati Corporate Center, "says the report.
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