Most property developers to report weaker sales in 2019
KUCHING: Most property developers to report weaker sales in 2019 with fewer new property launches, analysts opine, noting that several property developers have cut their sales targets due to the challenging local property market conditions.
Affin Hwang Investment Bank Bhd (AffinHwang Capital) believed property sales peaked in 2017-2018 for most of the property developers and started to ease in 2019.
“Several aggressive property developers set lower target sales in 2019 such as S P Setia Bhd (SP Setia) and Eco World Development Group Bhd (Eco World) amidst challenging market conditions, after sustaining relatively high sales in previous years,” the research firm said in a property sector update.
“We believe most developers will see weaker sales in 2019 except Sime Darby Property Bhd (Sime Darby Property), IOI Properties Group Bhd (IOIPG) and Sunway Bhd (Sunway).
“They have been marketing their properties aggressively to reduce inventories and carried out selective new launches in their existing projects to sustain previous-year sales.”
AffinHwang Capital noted that only several property developers have provided guidance on 2020 target sales, such as Gamuda Bhd (Gamuda), Sunway and Eco World, and were mostly more optimistic on sales growth.
“Gamuda (mainly Vietnam), Sunway and IOIPG (Singapore and China) are expecting more overseas project launches and higher proportions of overseas contributions to drive sales growth.
“We gather that most developers remain cautious on the local property sales.”