KUALA LUMPUR: Glomac Bhd is slashing about 40 per cent of its property launches this year but remains optimistic of steady earnings visibility.
Group managing director and chief executive officer Datuk Seri FD Iskandar said the optimisim was on the back of higher sales, especially from July-September this year, backed by increasing demand in the landed segment.
Still, FD Iskandar said the group had cut its planned sales launches this year from RM670 million in gross development value to RM403 million GDV, because of the uncertainties brought by Covid-19.
Glomac had to scale down the launches in the year ending April 30, 2021 (FY21) as the overall take-up rate was fairly low.
"We believe other property developers will also look to scale down their launches. The take-up rate will be dependent on the people's confidence. Now, it is fairly due to the pandemic and economic challenges," he said at a virtual press conference after its 36th annual general meeting here today.
Glomac is still reviewing its full-year sales target as Malaysia enters the third wave of the Covid-19 pandemic
"The first two-and-a-half months (April, May and June) were very slow before picking up in June. In July, August, September, we had a good three-month sales momentum, until the third wave came in October, as people couldn't come to the showroom," FD Iskandar said.
Glomac had posted zero sales in April and May, he added.
He said Glomac's financial performance would be sustainable, backed by unbilled sales of RM660 million as at the first quarter of FY2021, and the resumption of construction activities post-Movement Control Order.
He believes demand to pick up especially in the residential segment once the CMCO was lifted and with various economic stimulus.
This included the reintroduction of Home Ownership Campaign which will last until next year, waiver for Real Properties Gains Tax, exemption of stamp duty and low-interest rate environment.
"It is the best time to buy a property," he remarked.
He expects Glomac's unbilled sales to be replenished with new launches in mid-market and affordable landed residential projects with the bulk of the development in Saujana Perdana Sungai Buloh, Saujana KLIA and Saujana Chaya in Johor.
It will continue to pace its new launches strategically, leveraging on a strong development portfolio with a potential estimated gross development value of RM8 billion.
"We have ongoing stocks of about RM123 million. We still have over RM500 million of property sales to go in FY21," he said.