Sinyi Realty Inc yesterday forecast (信義房屋) that its profitability would improve this quarter, as the local property market would likely continue to benefit from ample liquidity and record-low interest rates.
Sinyi Realty, Taiwan’s only listed broker, gave the positive outlook during an online conference call, where it reported that net income grew more than threefold year-on-year to NT$557 million (US$19.3 million) last quarter, or earnings per share of NT$0.76.
The performance came even though the July-to-September quarter is traditionally a slow season due to Ghost Month, which falls on the 15th day of the seventh lunar month, and as earnings from its property development arm diminished, it said.
Taiwan’s stable economy and quick control of the COVID-19 pandemic spared the local market of a contraction seen in other countries, Sinyi said, adding that abundant liquidity and ultra-low interest rates motivated people to own real-estate properties.
The pace of sales for both presale and existing housing accelerated in the third quarter and the momentum might continue in this quarter, the peak season for the property market, and extend into next year, Sinyi said.
The central bank is unlikely to raise interest rates anytime soon with virus infections spiking in the US and Europe, it said.
The bank cut the rediscount rate to a record low 1.125 percent in March to ward off a cash crunch and ease the burden on households, in line with actions by global peers, as it might take a while for people to be vaccinated after drug companies create successful and affordable COVID-19 vaccines.
While property brokerage underpinned Sinyi’s earnings last quarter, the agency wing generated 40 percent of the overall profits, the company said.
Sinyi yesterday held a groundbreaking ceremony for its presale mixed-use complex in New Taipei City’s Banciao District (板橋).
The complex features 24 floors above ground and six basement levels, Sinyi said, adding that it would have retail space on the first through fourth floors and apartments of 37 ping to 55 ping (122.3m2 to 181.82m2) on the sixth through 24th floors.
The fifth floor would be reserved for public spaces, it said.
The project is already 30 percent sold since its launch during the autumn sale season, starting on Sept. 28, Sinyi said.
The presale campaign for another complex nearby ended after achieving a sale rate of 85 percent in September, the company said.
Sinyi said it plans to sell the remaining units after completing construction on the project.
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