Category Archives: Property Price

CDL posts 44.5% fall in Q1 net profit

Posted on 10 May 2012 | Comments Off on CDL posts 44.5% fall in Q1 net profit

Singapore real estate developer City Developments Limited (CDL) posted a 44.5 per cent on-year decline in its first-quarter net profit at S$156.8 million.

In a statement issued on the Singapore Exchange, CDL said its revenue rose 9.4 per cent on-year to S$846.7 million for the three months to 31 March 2012.

CDL added that its net profit for Q1 did not register a corresponding increase partly due to substantial gains recognised in Q1 2011 on the disposal of the corporate office.

The developer said its property development segment remained the largest contributor to the group’s pre-tax profit. During the quarter, CDL launched two new developments – The Rainforest at Choa Chu Kang area and Bartley Residences along Bartley Road.

It added that The Rainforest, a 466-unit Executive Condominium (EC), has been well received with 94 per cent of the units sold. Meanwhile, 290 units out of the 350 units launched under Phase 1 at Bartley Residences have been sold.

CDL said it is preparing to launch the trendy UP @ Robertson Quay along Singapore River very shortly. The new property will comprise 70 high-end apartments and loft residences as well as a 300-room new lifestyle concept hotel known as M Social.

Another project which CDL plans to launch in the first half of this year is HAUS @ SERANGOON GARDEN, a landed housing development with 96 terrace units.

CDL also believes that its Quayside Isle project in Sentosa has not reached its full potential, and the full value of the property will be more evident in the second half of the year when the retail component and the hotel are operational.

The Quayside Isle project includes The Residences at W Singapore Sentosa Cove, a 240-room W Singapore Sentosa Cove hotel and retail outlets.

Going forward, CDL said it is optimistic that the gradual economic recovery will help improve sentiments for the high-end residential market.

It added that the strong Singapore dollar, liquidity in the market, low interest rate environment, favourable housing loans and lack of other stabilised investment products are also factors that have continued to sustain property investments in Singapore.

CDL said with its diversified portfolio of assets, strong balance sheet and prudent management, it expects to remain profitable in the current year.

Source : CNA – 10 May 2012

Comments Off on CDL posts 44.5% fall in Q1 net profit

Posted in Developers, Property Market / Real Estate, Property Price, Sentosa Property

Tagged , , , , , , , , , , , ,

High-end market on a downward spiral?

Posted on 9 May 2012 | Comments Off on High-end market on a downward spiral?

Sluggish demand for high-end homes has lowered developers’ profits of late. If this trend continues, the luxury market could eventually hit rock-bottom in the days to come.

With prices of luxury homes expected to fall by 15 percent this year, foreign demand is expected to dry up due to tightening measures and economic uncertainties.

Early on, property developers are feeling the pinch over this weakening outlook.

Recently, SC Global warned of a S$10 million loss for Q1 2012, following weak profits recorded from its ready-for-occupancy projects. In fact, not even half the units released at The Marq on Paterson Hill and Hilltops were sold.

Ho Bee’s official figures revealed a shocking 71.6 percent plunge in Q1 2012 earnings to S$15.4 million. Its luxury projects, Turquoise and Seascape at Sentosa Cove, have recorded sales at 46 and 28 percent respectively.

The weakening interest in the high-end market may be attributed to the implementation of a 10 percent Additional Buyers’ Stamp Duty (ABSD) in December last year, which deterred foreign buyers.

Foreign buyers contribute significantly to the market, accounting for 40 percent of property transactions last year in prime district 10, which covers the Tanglin and Ardmore areas. Driving foreign buyers from the market will affect locals who have sold their homes to foreigners, as they cannot recycle their capital easily.

Savills Research has predicted that foreign buyers will account for a mere 15 percent of luxury homes sales this year. The ABSD immediately reduces return on investments (ROI) because these fees have to be paid upfront.

Singapore is considered the most expensive market for high-end properties in Asia, with buyers from China, Indonesia, Malaysia and India significantly contributing to the luxury home market.

However, a number of foreign buyers have put off their plans to buy multi-million dollar properties to avoid the ABSD. At the same time, the luxury market will likely see a surge in the supply of new units, putting further pressure on prices.

Even rentals are coming down as a number of expats no longer receive their usual housing allowances.

Moving forward, the luxury segment will likely suffer as the price gap between the mid-tier and luxury segment narrows.

source : PropertyGuru -9 May 2012

Comments Off on High-end market on a downward spiral?

Posted in Luxury Property, Property Market / Real Estate, Property Price

Tagged , , , , , , , , , , , , , ,