KUALA LUMPUR - UEM Sunrise Bhd expects sales at its key projects in Johor and Klang Valley to pick up in the coming quarters, as buyers adjust to tighter lending measures that had curbed demand for new launches.
The company sold RM123 million (S$48 million) worth of properties during three months ended March 31, while total unrecognised sales remained strong at RM3.18 billion (S$1.25 billion).
"Although the cooling measures have substantially dampened demand, we do not expect this to have an immediate impact on our performance for the current financial year as the unrecognised revenue of RM3.18 billion (S$1.25 billion) from our ongoing projects will continue to flow into our books as construction progresses,'' its executive director Datuk Izzaddin Idris
"Furthermore, we believe that the current negative sentiment in the market is temporary and demand will pick up again in the second half of the year," he said in a statement yesterday.
The property developer, which reported a net profit of RM61.5 million (S$24 million) in the three months ended March 31, said its latest quarterly results were affected slwoer sales and lack of one-time gain from land disposals that boosted earnings to RM211 million (S$82 million) in the same quarter last year.
Revenue for the quarter under review was also down to RM401.5 million (S$157 million) compared to RM697.7 million (S$272 million) last year.
The lower financials for the quarter was primarily due to the inclusion of the strategic sale of several parcels of land in Puteri Harbour worth RM400 million (S$156 million) in the first quarter of last year.
To boost slacking sales, the company is planning to launch more mid-market residential development in response to the market's needs in addition to providing more affordable homes,
The first batch, comprising 351 units, was soft-launched in March in Nusa Bayu.
He added that UEM Sunrise was looking forward to the launch of Serene Heights - its mid-market landed residential development in Bangi - in August this year.
"We have also started planning for a new mid-market residential project in Gerbang Nusajaya which is in addition to our affordable homes initiative that have been announced on March 1."
The affordable homes and residential developments will further complement and support the initial catalytic projects that have been announced for Gerbang Nusajaya such as the Nusajaya Tech Park joint venture with Ascendas and the Motorsports City joint venture with Fastrack Autosports.
"These projects form part of our long term strategy for Gerbang Nusajaya to spearhead the next wave of growth for our Nusajaya landbank," said Izzadin.