Singapore Property | Based on SGX Filing on Jan 31, 2019, GuocoLand’s earnings fell by 84 percent to $10.85 million as of Q2 ended December 31, 2018, compared to around $66.01 million within the same duration a year ago.
Simultaneously, the revenue for this renowned homebuilder based in Singapore dropped from $370 million to $142.95, translating to a 61 percent drop.
“This drop was primarily because of greater progressive profits recognition in the preceding corresponding quarter following the acquisition of TOP by Sims Urban Oasis in October 2017,” noted Guocoland in its recent financial statement.
Guocoland also attributes the reduced revenue to the lower sales of the already complete residences in the course of the quarter under review. Over the previous quarters, the group’s portfolio of unsold units declined substantially.
Due to the above reason, the revenue for the half a year period ended 31 December dropped from $732.54 million to about $310.96 million, translating to 58 percent year-on-year drop. Net profit also dropped from $237.8 million to $37.01 million, translating to an 84 percent slump.
GuocoLand announced that it had broken ground for a mixed-used development in the Core Central Region (CCR) in the course of the last quarter. This is in spite of URA data revealing that the price of private non-landed residences in the region fell by 1.0 percent in the fourth quarter of 2018 after a 1.3 percent increase in the previous quarter. Guocoland has a balanced inventory of commercial, mixed-use, and residential developments. It also has an integrated mixed-use property called Guoco Midtown Suites whose construction begun in November 2018. This development is conveniently located near shopping centers, schools, and amazing chill spots. It is also within close proximity to modern healthcare centers that offer topnotch medical services. The development is a few minutes’ walk to popular MRT stations and expressways that connect the area to other parts of Singapore.