A large property owner known as CapitaLand announced that their net profit drops to 36.6% to S$294 million in the second quarter of 2016. The reason for this drop was due to lowered fair value gains from the properties changing prices, lessened by the enhanced running performance.
On the other hand, there is an increase of CapitaLand’s revenue in Singapore and China. The group revenue increased 9.7% to S$1.131 billion on higher grant from implemented projects. Aside from that, there is also an increase in income from the offered residence business and the company’s higher grant.
The Paragon located in Shanghai, Cairnhill Nine located at Singapore, and Vermont Hills located in Beijing have also contributed to CapitaLand in gaining higher revenue during the quarter.
A development in Orchard area, Cairnhill Nine, which launched in the 3rd month of the year, has been able to sell 78% of the 268 units.
During the first half of the year, the giant property owner found clients for 304 homes or nearly thrice the 106 units sold on the same period of 2015 despite Singapore’s residential market muted.
A 109-unit cluster housing project known as Victoria Park Villas, located at Coronation Road was opened for a private viewing by the developer to draw in potential clients. According to the CEO of the company in Singapore, Mr. Wen Khai Meng, said there are arrangements made regarding the official launching of the project after the 7th month of the year.
CapitaLand China sold 6,273 homes for the first half of the year, higher than 50% than the previous year. They have greater than 3,000 units arranged for its launching in the second half 2016.
The company will also begin in handing over 9,000 sold units for a total of RMB13 billion or S$2.6 billion and said that 60% of the RMB13 billion will be predictable be recognized in the second half of 2016.
In this year, CapitaLand has sold greater than 7,000 homes with the total sales of S$2.62 billion all and all.
Mr. Lim Ming Yan, the president and group CEO of the giant company, mentioned that they will preserve their focus on their core markets of 2 countries, China and Singapore. He also has mentioned that Indonesia and Vietnam’s growth market will also be maintained, including their global platform for residential business. Moreover, his company plans to increase their assets under administration by using to maximum advantage their fund administration platform and administration contracts.