aco, good to see you back in, appreciate your insights. I am long GFA (taking small bites down from high 11's) and reducing my PPS. I have a bit of confidence in this stock and am willing to wait. I have a smaller stake in BSBR and am hoping that its mama STD won't bite into it to pay for Spain issues.
SAO PAULO (Dow Jones)--Brazilian real-estate developer Gafisa SA's (GFA, GFSA3.BR) contracted sales totaled 1.15 billion Brazilian reais ($728 million) in the second quarter, up 29% from the same period a year earlier, the company said over the weekend in a statement.
The company noted that the value of new properties put up for sale increased 37% to BRL1.38 billion in the second quarter from the year-earlier period.
Gafisa's preliminary second-quarter figures represent a recovery from the first quarter, when contracted sales dropped 4% and new properties decreased 27%.
For the Brazilian real-estate industry, historically, the second quarter is more active than the first quarter, which coincides with summer vacations.
For central-bank officials and analysts, there is no bubble in Brazil's real-estate market. They have attributed the expansion of Brazil's housing market to first-time buyers, rather than any trend toward the purchase of property as an investment.
Gafisa's shares recently traded down 0.15% at BRL6.67 in Sao Paulo.