Country View to launch new project, albeit cautiously
Country View Bhd says it will continuously monitor the prevailing up to date market conditions before launching its latest development Aurora Sentral in Johor, given the Covid-19 global pandemic.
The developer is still assessing the full impact of the Covid-19 pandemic on consumer confidence and the group.
Country View said the pandemic, along with the movement control order (MCO) had seriously affected economic activity across all sectors.
As such, market conditions are expected to become more challenging for the financial year ending November 30, 2020, it said.
“We remains cautious and vigilant given the new impact and challenges arising from the Covid-19 global pandemic and the MCO put in place on top of the existing continued stringent lending requirements by the financial institutions, the intense competition among developers and weak market sentiments,” the group said in a filing with Bursa Malaysia.
Country View posted revenue and pre-tax profit of RM26.4 million and RM4.8 million respectively for the first quarter ended February 29, 2020, as compared to the restated revenue and pre-tax profit of RM54.8 million and RM10.4 million respectively in the preceding year corresponding quarter.
Revenue and pre-tax profit for the current quarter under review decreased by 27 per cent and 47 per cent respectively as compared to the immediate preceding quarter mainly because it sold fewer properties coupled with the lower percentage of completion from some properties like the cluster houses from the Winter Sonata series.
Country View said its revenue and performance for the current financial year ending November 30, 2020, will be driven by landed residential and commercial properties.
The properties include three-storey cluster homes, three-storey superlink terraced houses, three-storey semi-detached units, and three-storey shop offices.
Country View is also expecting contribution to come in from its One Sentral Serviced Residence, and the affordable homes under the Rumah Mampu Milik Johor (RMMJ) and Perumahan Komuniti Johor (PKJ) schemes.
It said the recent stimulus measures announced for the property sector in conjunction with the recovery MCO such as the re-introduction of the Home Ownership Campaign (HOC) with a waiver of stamp duties on instruments of transfers and loan agreements for properties priced between RM300,000 and RM2.5 million, the exemption of Real Property Gains Tax (RPGT) for individuals, and the lifting of the 70 per cent maximum Loan to Value Ratio for third property financing will augur well for the market.
Source: NST