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No Decline for CapitaLand’s Profit amid Home Sales’ Wane

CapitaLand, one of the most famous names in SG real estate industry, is currently planning to extend its projects in other Asian countries such as Malaysia, Indonesia, and Vietnam. This giant company is looking is trying to explore more options due to the dwindling industry in Singapore. But Today Online confirmed that CapitaLand will still have Singapore and China as its core markets.

Lim Ming Yan, the chief executive of CapitaLand, said that they are still looking for the right timing as well as better opportunities for the said two countries particularly residential projects.

On the other hand, the chief executive of CapitaLand in Singapore said that the land price isn’t giving them as much return as they expected. Wen Khai Meng also mentioned that currently, they still have more than 1,300 units left unsold. They want to make sure that their shareholders will gain profit before they start working on SG and China projects full time.

For the second quarter this year, CapitaLand showed in their financial statement that their residential units’ sales dropped by as much as 77 percent. In 2014’s Q2, the number of units sold reached 161 while during the same period in 2015, they only sold 37 residential units.

The good thing though is that despite the big fall in the number of units sold, the net profit of CapitaLand actually increased by 5.8% during the second quarter of 2015. Last year, their net profit reached more than $460 million mainly because of the gains that they received from their China properties.

CapitaLand is aiming to complete the expansion to its neighboring Asian countries in the next couple of years. They see the vibrant life in Vietnam which caters to the young population, the urbanization in Vietnam particularly in Hanoi and Ho Chi Minh. Little by little, these countries are starting to have the same vibe as Singapore and Bangkok where the developments like Focus Ploenchit is selling fast.

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