Thanks mainly to ongoing and new development projects, UOL Group’s net profit for 2017 Q1 increased by 4% to S$80.2 million. This increase can properly be attributed to the publicly-listed company’s interests in projects such as Principal Garden, Botanique at Bartley, the Clement Canopy development, as well as Holborn Island in London. It is a good mix of both property investment as well as hotel operations.
In Singapore, ongoing residential projects, Principal Garden and Botanique at Bartley, are responsible for a 6% revenue increase to S$350.70 million. Property development accounted for more than half of UOL Group’s revenue at S$183.30 million while property investment and hotel operations supplied S$56.50 million ad S$ 104.60 million, respectively.
As reported in with Singapore Exchange Limited or SGX, profits from associated and joint venture companies increased by 1% due to contributions from the Clement Canopy development (a project launched end of February 2017) and the purchase of Holborn Island, London (which had been acquired in November 2016). These two large projects equalized the lack of contribution from the Thomson Three development; which had been completed in May of 2016. Thomson Three, a 20-storey condominium with 435 units and 10 strata semi-detached homes did not perform as expected in spite spacious interiors and view features.
(Artist Impression of The Clement Canopy)
In the aftermath of Singapore’s property cooling measures, as well as improved sentiments, the private residential market appears to be stabilizing. Property cooling measures had been placed in 2013 to control on-going speculation in the property market. This meant higher buyer stamp duty, restrictions on permanent residents buying their first home, and size restrictions on executive condominiums. Fortunately, the problem of oversupply in the past months have subsided, thanks to increasing demand from the industrial, corporate, retail and e-commerce offices. This behavior in the market only serves to loosen the measure’s grip and is expected to continue in the months to come.