A report regarding a 55% drop in net revenue to S$168.8 million in the second quarter of the year was made by the well-known property developer called the UOL group. They merely said that the reason for their profit drop was mainly on the losses of fair value on investment properties.
The well-known Singaporean property developer had documented their losses which resulted to a total of S$21.5 million opposing their S$53.8 million achievement on the first quarter of the year 2016.
In the year 2015, the group revenue of the UOL Group grew by 6% to S$363.6 million in the second quarter. This was due to residential projects launched by UOL group namely; the Riverbank at Fernvale, 70 Saint Patrick’s at District 15 Marine Parade, Botanique @ Bartley at Upper Paya Lebar Road near Bartley Road and Principal Garden at Prince Charles which are all under development.
Aside from that, the group pointed out that their property development revenue boosted to 14% to S$185.5 million on the second quarter.
In the meantime, the UOL group stays alert on the housing market’s outlook. The Deputy UOL CEO, Mr. Liam Wee Sin, mentioned that most of their residential developments have attained relatively better response rate due to their solid product qualities. He also mentioned in his statement that their most concern is that the prices for their land will be directed to a bad state due to the extreme competition and the absence of sites confirmed in the land sales of the government.
The UOL group is also expecting rentals from offices to be under great pressure from a massive supply in the second half of 2016. At the same time, they also view retail rents being pummeled down by the low retail sales and higher competition.