Koh Brothers, a renowned property developer in Singapore, recorded a decline in its gross profit from $12.1 million to $2.2 million for the Q4 2018. Within the same duration last year, its revenue remained stable at $131.5 million, with a slight drop from $131.9 million.
For the entire 2018, the developer saw the net profit drop by 14 million to $6.6 million while revenue slightly dropped from $403.8 million to $403.6 million.
“Our geographical expansion has started paying off and our Seoul-based Nonhyeon I’PARK mixed-use property has begun to generate profit. Concurrently, we are concentrating on unveiling three freehold properties in the rapidly growing Holland Village district in 2019,” pointed out CEO Francis Koh of Koh Brothers.
“We will make our projects stand out from the massive competition by leveraging our special emphasis on lifestyle-themed developments, taking full advantage of the upgrading of the Holland Village neighborhood,” added CEO Francis.
In June 2018, Koh Brother announced that it had moved 96 percent of its units at Nonhyeon I’PARK, a mixed-use development situated in Gangnam, South Korea. The group has a 45 percent ownership in the property that enjoyed warm reception upon its launch, selling 75 percent of all units in one week only.
In Singapore, Koh Brothers fully owns Toho Mansion, Van Holland (name to be confirmed) and it has a 20 percent stake in properties like Hollandia and Estoril. These three freehold developments are located in the prime Holland Village neighbourhood that has been reserved for expansion and rejuvenation by the government.
The Urban Redevelopment Authority (URA) recently released flash projections that revealed a 0.1-point drop in the price of private residential developments in quarter four of 2018 compared with the previous quarter. For the entire 2018, prices increased by 7.9 percent compared to the 1.1 percent rise witnessed in 2017. “In the future, we will keep track of the market to help us launch our projects in Singapore at the right time. At the moment, we are concentrating on expanding our presence outside Singapore,” said CEO Francis.