Sime Darby Property Berhad is undertaking a "tactical price review" of all its unsold property units, particularly for development units that have already been completed.
The property market in Malaysia has been facing low absorption rates due to current economic uncertainties and tight lending conditions. Property developers have initiated competitive marketing promotion and price discounting strategies to counter these key challenges. Thus, a price review of Sime Darby’s unsold properties would make sense given its high level of inventory units still available on the market.
On top of that, the property group's net profit for the last quarter ending September 2018 stood at RM28.8 million – a 93% drop compared to the RM421 million made in the corresponding quarter a year ago. It attributed its drop in profits mainly to the share of loss from the Battersea project in London.
(Image: Focus Malaysia)
"Budget 2019 has provided a number of initiatives to support home ownership. The Group envisage that these positive developments would provide a boost to the property market," said Sime Darby when it told Bursa Malaysia of its tactical price review on 27 November.
Sime Darby Property is a publicly-traded government-linked company. It expects its results for the financial period ending 31 December 2018 to be satisfactory.