It looks like GFA reeled in their launches for Tenda, primarily, which also represented the greatest percentage reduction in sales. Rossi on the other hand, saw greatly increased sales but also launches.
This is key: GFA saw its "velocity of sales" for its LAUNCHES increase to 58% from 33% YOY.
The companies are pursuing different strategies. Gafisa responded strongly to the cutbacks in MCMV by severely cutting its Tenda launches. Rossi did not. Gafisa is drawing down its inventory at a faster rate than Rossi.
In short, management is responding accordingly to current market conditions.
Can you please explain in a bit more detail what you mean by "market conditions" for Tenda? I have no personal knowledge, but I have heard generally that there is still a waiting list for Tenda projects built and financed through Minha Casa, Minha Vida (at least in the suburbs of Rio de Janeiro). Is this no longer true? Is it a matter of Tenda not having inventory to sell (i.e., can't build them fast enough) or has there been a reduction in demand for Tenda type properties such that they are now no longer as easy to sell?
I'm trying to better understand the pessimism here. Thanks for your insight.
I don't have all the details. However, Dilma announced cuts to MCMV several weeks ago, as you probably know. My best guess is that GFA is responding in kind by cutting back (not eliminating) launches. Rossi is gambling that demand will continue to rise at accelerated rates.
Other than that, there is the persistent interest rate/inflation concern and growing awareness that the USD is probably ready for a bounce that is likely dragging prices down for EMs in general and Brazil in particular.