Most developers are said to be assessing the economic situation before deciding to continue with or defer future launches.
“Property developers IOI Properties Group and Mah Sing are the only ones whose profits came in within expectations while the results of Crest Builder, MRCB, SimeProp and SP Setia were lower than expected,” it said in a report. AmResearch noted that all the companies reported lower earnings in fourth-quarter 2020, primarily attributed to slower recognition as a result of the MCO.
AmResearch said it might upgrade its stance on the sector should banks ease lending policies on properties or consumer sentiment improve significantly. “Judging from the sales momentum in early 2021, most developers expect a better sales outlook in FY21 though it may be coming at the expense of lower margins on lower pricing.”