Balwin Properties, SA’s largest sectional title developer, has warned of a steep fall in profits as Covid-19 batters the property market.
Headline earnings per share in the six months to end-August are expected to fall by between 55% and 60% from the previous period’s 40c, the group said in a trading update.
Covid-19 disrupted construction activity and has resulted in challenging market conditions, Balwin said, reporting a 5% reduction in the average selling price of apartments from the year-earlier period.
The company expects there to be strong demand for apartments, and it has launched an online sales platform.
In morning trade on Thursday, Balwin’s share was up 3.45% to R3, having fallen 18.7% so far in 2020.
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