Review On Property Cooling Measures Urged

Property developer City Developments (CDL) warned that the property market remains challenging and unpredictable as it reported lower revenues and profits in its latest quarterly financial report.

It also urged the Government to review property cooling measures, adding that the timing on the lifting of the measures “is the most important factor to achieve a healthy and sustainable property market”.

Last year, revenue was recognised from Blossom Residences but no revenues were booked from the group’s fully sold Lush Acres executive condo, The Brownstone EC, which was launched in July, and The Criterion EC launched in September.  Executive condo in the market include The Terrace EC and Signature EC at Yishun. Upcoming ones include the Parc Life EC , Visionaire EC and Wandervale EC.

Net profit came in at $106.4 million for the three months to Sept 30, down 16.4 per cent from the same period last year.

Revenue plunged 38.8 per cent to $809.3 million.

“Headwinds continue to dominate both domestically and globally. Markets remain highly sensitive, unpredictable and challenging,” said CDL.

Its property development segment remained the top contributor in terms of profit before tax. Contributions were mainly from its popular projects like Coco Palms, which is 87 per cent sold.

Profits were also contributed by projects like D’Nest and The Palette.

The group’s next highest profit contributor was its hotel operations segment, despite adverse trading conditions in Asian markets.

Earnings per share for the quarter fell 16.4 per cent to 11.7 cents compared with 14 cents for the same quarter in the previous year.

Net asset value per share was $9.53 as at Sept 30, up from $9.25 as at Dec 31 last year.

Profit and revenue for the nine months ended Sept 30 also dipped. Net profit was down 5.7 per cent to $362.92 million.

CDL shares closed 17 cents lower at $7.71 yesterday.