KUALA LUMPUR, Nov 30 — Sime Darby Property Bhd has set a lower sales target for next year, lower than the RM2.7 billion achieved in the nine months ended Sept 30, 2022, citing labour shortages, rising interest rates globally, and supply chain concerns as main challenges for the company.
Group managing director Datuk Azmir Merican said the developer has exceeded its RM2.6 billion FY2022 initial sales target, a 43 per cent year-on-year (y-o-y) increase from the RM1.9 billion sales achieved in the corresponding period in FY2021.
“I expect the sales (for next year would not be) stronger than what we achieved, we have also moved forward some of the launches for this year although the demand is good,” he said during a question-and-answer session in conjunction with Sime Darby Property Virtual Media Briefing (Q3 FY2022) here today.
Sime Darby Property has launched products with a total gross development value (GDV) of RM2.1 billion during the review period, but it has lowered its launches for the fourth quarter of this year to a total GDV of RM500 million.
“The primary issue we have is labour, and the management team has discussed whether it is preferable to delay it by a quarter and allow workers to come in while also monitoring the position of our contractors.
“So, we put (off) some of these launches this year, and maybe it will be better for us when we launch in three months time,” he added. — Bernama