Paramount Adjusts Sales Targets Amid Softer Property Market
Malaysia’s property market continues to show signs of cooling, with Paramount Corp Bhd announcing a trimmed 2025 sales target and reduced project launches in response to moderating economic conditions. Despite near-term headwinds, the developer maintains a cautious but resilient outlook, with strong unbilled sales supporting its pipeline.
Lowered Sales and Launch Projections
Paramount revealed that its full-year sales target has been revised to RM1.2 billion, down from RM1.5 billion, while its launch pipeline has been cut to RM1 billion from RM1.4 billion.
The adjustment comes as residential property transactions in Malaysia showed a decline in the first quarter of 2025. Data from the National Property Information Centre (NAPIC) recorded a 5.6% drop in transaction volume and a 2.8% dip in value year-on-year.
External Headwinds Impacting Buyer Sentiment
The group highlighted several macroeconomic pressures weighing on the property sector:
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Geopolitical tensions disrupting trade confidence
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Newly imposed US tariffs on Malaysian exports
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Expanded Sales & Services Tax (SST)
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Upcoming fuel subsidy reforms, which may further strain household finances
Collectively, these factors have dampened buyer sentiment and heightened affordability challenges, especially in the KL property market where costs are already high.
Financial Performance Snapshot
For its second quarter ended June 30, 2025 (2QFY2025), Paramount posted a net profit of RM21.77 million, down 10.15% from RM24.23 million in the same quarter last year. Revenue remained steady at RM232.54 million, compared to RM232.94 million in 2QFY2024.
The decline in profit was attributed to a higher comparative base in 2024, when certain project cost savings boosted performance.
Nonetheless, Paramount declared an interim dividend of three sen per share, payable on Sept 18, 2025.
For the first half of 2025, results were more encouraging:
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Net profit rose 13.4% to RM36.21 million (6MFY2025)
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Revenue increased 11.1% to RM450.38 million
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Unbilled sales stood at RM1.5 billion, providing a healthy pipeline of future earnings
Leadership Update
In tandem with its results, Paramount announced a key leadership change. Benjamin Teo Jong Hian, son of the group’s late chairman Datuk Teo Chiang Quan, has been redesignated as deputy chairman. He remains a major shareholder, holding a 1.46% direct stake and a 27.37% indirect stake through Paramount Equities Sdn Bhd.
Shares in Paramount closed three sen higher at RM1.10 on Wednesday, giving the company a market value of RM685.05 million.
What This Means for the KL Property Market
Paramount’s cautious stance mirrors broader trends in the KL property market, where affordability challenges and economic pressures continue to weigh on buying momentum. However, the company’s large unbilled sales base and strategy of optimizing efficiency suggest that developers are focusing on sustainability and resilience rather than aggressive expansion.
For property investors, this signals a period of consolidation where projects in prime locations with strong fundamentals—especially freehold developments and transit-linked condos—are likely to hold value and attract demand, even in a more challenging market environment.
Final Thoughts
While Paramount has scaled back its sales targets, its commitment to operational efficiency and its RM1.5 billion unbilled sales pipeline reflect a steady long-term position. For buyers, this underscores the importance of choosing developers with strong fundamentals, proven track records, and projects that align with evolving market conditions.
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