Realty company City Developments Ltd. has reported an 18 percent profit increase in the second quarter spurred by high demand for homes and office space due to a record-high economic growth in Singapore.
Online PR News – 19-August-2010 – – Realty company City Developments Ltd. has reported an 18 percent profit increase in the second quarter spurred by high demand for homes and office space due to a record-high economic growth in Singapore.
According to its disclosure report, the company’s second quarter net income jumped S$164.6 million, or 17.2 cents per share, from S$140 million, or 14.7 cents last year. Meanwhile, its revenue increased about 20 percent to S$941.7 million during the same period.
In a statement, City Development chairman Kwek Leng Beng said that “Singapore’s strong economic growth in 2010 has given the property industry several advantages.” However, the official has warned that “strong growths should be measured carefully since there are still several risks in the world economy.”
The property development business, which was the biggest contributor to the company’s overall sales, has increased 29 percent to S$444.19 million. Its hotel operations and rental properties have also reported an increase in revenue.
Meanwhile, the City Developments shares fell 2.2 percent to S$11.66 on Thursday, a decline for seven consecutive days which is the longest losing streak in three months. During the same period, the benchmark for Straits Times Index has increased 0.8 percent.
The land developer has recently announced its plan to sell homes from its two housing projects in Singapore to meet the “healthy demand for properties”.
In a statement, the Singapore Company has also announced its plan to expand in China by investing nearly S$300 million to buy new properties and land amid easing prices and sales in the country.
According to a report released by China Information News, property prices in 70 major cities in the country increased 10.3 percent in July from the previous year, the slowest pace in six months.
Meanwhile, Singapore’s economy grew 24 percent in the second quarter due to the surge of tourist arrivals and influx of foreign businesses. Previously, the government has signed the Singapore EntrePass law that encourages foreign investors and professionals to setup their business in the country.