LISTED property firm Mashonaland Holdings Limited (MHL) has bemoaned US$ shortages on the official market underscoring the trend is restricting the number of freehold property transactions.

Presenting the group's half-year results for the period ended June 30 2024, MHL board chairperson, Engineer Grace Bema said the entire property sector was affected by inadequate foreign currency supplies during the period.

"The estate market has been impacted by persisting foreign currency shortages in the formal sectors of the economy. Low liquidity has restricted the number of freehold property transactions concluded in the market," she said.

The remarks resonate with recent observations made by the Confederation of Zimbabwe Industries (CZI) urging authorities to liquidate the official US$ markets as a combative measure to ease pressures on the exchange rate.

However, commenting on the economic environment during the review period, Bema hailed the Reserve Bank of Zimbabwe's monetary policy position introducing the Zimbabwe Gold (ZWG) currency effective April 2024 which eased inflation during the first stages.

During the period, MHL revenue increased by 15% from US$3,1 million to US$3,6 million.

Rental income contributed to the positive performance having improved from US$2,3 million in 2023 to US$2,7 million in June 2024. The group completed and handed over the Mash View Gardens Cluster housing development.

The group earned US$542,2 million in revenue from the project thereby contributing to the revenue performance for the half-year period.

Operating profit increased by 53% from US$1,1 million in June 2023 to US$1,7 million in June 2024 due to improved revenue performance and a decrease in project expenses following the completion of the Mash View Gardens Project.

The group posted a Profit After Tax of US$2,4 million which represents a 72% improvement from the US$1,4 million in 2023. The performance was due to an improved operating profit position and a capital gain on investment property of US$1 million.