It said the anticipated overnight policy rate (OPR) hikes for the rest of the year would not have a huge influence on the mid-market segment where it already has a few new launches in the pipeline.
CEO Sufian Abdullah said that historically, there is very little correlation between OPR hikes and demand for good property products. “This is especially so in the mid-market segment,” he said at a virtual press conference today to announce the company’s financial results for the second quarter ended June 30.
“We do foresee challenges … but we think the changes in the OPR will have a very minimal impact on home buying activity,” he said.
Sufian said that although interest in its properties in Johor cooled due to the state election in the first quarter, the company expects projects like KAIA Heights in Seri Kembangan and Collingwood, Melbourne to remain the main sales contributors for the rest of the year.
“We are still optimistic that towards end-2022, if we cannot meet the target, we will at least be close to that number,” he said.
According to a press release UEM Sunrise issued today, there are plans to launch the second phase of KAIA Heights in Equine Park, new phases in Serene Heights and a proposal to introduce MK 31 in Mont’Kiara in H2 2022.
The company also plans to launch Aspira Gardens in Gerbang Nusajaya and Senadi Hills in the southern region, as well as a new development in Collingwood, Melbourne, Australia.
Commenting on a development in Taman Connaught, Cheras which has been deferred to next year, Sufian said the deferment was due to the delay in obtaining an advertising permit and developer’s licence from the housing and local government ministry.
“We expect this to be resolved soon, and the project will obtain the necessary approval sometime towards the end of Q3 2023, or early Q4 2023,” he said.
On rising construction material costs, Sufian expects the issue to persist for quite some time, hence, the company had forged firmer partnerships with selected vendors and current contractors to remain resilient in the future.
“We have also changed our design for more efficient material consumption,” he said.
On labour shortages, he said that although it had slowed down construction progress, the impact is still within the company’s tolerance level.
In a filing with Bursa Malaysia yesterday, UEM Sunrise said it had returned to the black with a net profit of RM20.7 million in Q2 2022 from a net loss of RM7.37 million in Q2 2021.
Revenue rose 47% to RM365 million from RM249 million previously, mainly due to the sale of non-strategic lands in Mersing and Iskandar Puteri, it added.