EcoWorld Q1 earnings jump sixfold, set to hit RM4bil sales target
Eco World Development Group Bhd’s 1Q net profit was up more than sixfold to RM20.67 million, underpinned by RM410.7 million in sales during the period. Revenue increased almost threefold to RM463.51 million, and it posted a gross profit of RM109.7 million. In a statement yesterday, the property developer said up to Feb 29 2016, group sales amounted to RM607.8 million. Eco World is optimistic of achieving its RM4 billion sales target this year, and hopes to increase it to RM4.5 billion in 2017. With 11 ongoing project and new projects including Bukit Bintang City Centre (BBCC) and Eco Business Park II lined up, the company is on track with its projections. (The Sun Daily, The Star Online)
20,000 affordable homes in Perak by 2018
The Perak state government is planning to provide at least 20,000 units of affordable housing by 2018 as part of its commitment to helping the common folk own homes. Mentri Besar Datuk Seri Dr Zambry Abd Kadir stressed that this figure does not mean the state will stop after a certain number is reached, saying that the building of affordable homes would be a continuous process over the years to cater to the growing population. Zambry also said the state will be meeting with developers once every few years to work together in determining the suitable pricing for affordable homes and review them if necessary. (The Star Online)
Bank Negara deputy: DIBS causing house price hike
Bank Negara Malaysia deputy governer Dr Sukhdave Singh said the developer interest bearing scheme (DIBS) is actually pushing property prices higher. Many property developers are using the scheme, which allows buyers not to service their loans throughout the construction period, and borne by developers instead. However, what happens at the end of the day is that the property becomes 20%-30% more expensive. There are calls to do away with the scheme, as it encourages buyers to take up more credit which is unsustainable in the long run. (The Malay Mail Online)
Putrajaya says 1MDB doesn’t owe money for air base land
1Malaysia Development Bhd (1MDB) does not owe the federal government any money for the Sungai Besi Air Force Base (PUKL) land that was transferred to the firm, Putrajaya said, as its development agreement did not stipulate such payments. It explained that Putrajaya was responsible for RM1.1 billion of the RM2.7 billion cost to relocate police and air force assets on the land to another location, while the remaining RM1.6 billion was to be borne by 1MDB. (The Malay Mail Online)
Glomac to launch properties worth RM627mil in 2H this year
Property developer Glomac Bhd is planning to roll out RM627 million worth of new launches in the second half of FY16, with four out of the five planned projects being in the affordable landed residential segment. It will be launching new phases for its Saujana KLIA development, comprising 345 units of terraced houses with GDV of RM174 million, extension phases of its Bandar Saujana township in Sungai Buloh, and is also set to unveil its Saujana Jaya township in Kulai, Johor. (The Edge Markets)
Gamuda Q1 net profit falls 19%
Gamuda Bhd’s net profit for 1Q 2016 dropped 19.2% to RM160.1 million from the previous corresponding period, attributed to the soft local property market, and tapering of underground and elevated works for the Klang Valley Mass Rapid Transit (MRT Line 1) project. Its revenue dropped to RM527.4 million frm RM653.2 million last year. The company said the MRT Line 1 project was 79% complete as at February 2016 and scheduled to be fully completed by July 2017. For the Penang Transport Master Plan, it said discussions are ongoing and an agreement is expected to be executed by June 2016. (The Sun Daily)
