Keppel Land, a wholly-owned subsidiary of Keppel Corporation, has posted a net profit of S$92.1 million in the first quarter, up 45.5 percent from S$63.3 million a year ago, attributed mainly to the strong revenue from home sales in Singapore.
Revenue for the quarter was also boosted by higher contributions from its property trading unit, as well as profit from its listed office trust K-Reit Asia and the S$24.4 million gain from the divestment of Keppel Digihub.
Q1 revenue also jumped 236 percent to S$357.9 million from last year’s S$106.5 million, mainly due to higher revenue recognitions from projects like Elita Promenade in India and The Lakefront Residences in Singapore, which sold 85 units in the first quarter.
Keppel Land said the government’s cooling measures have moderated home sales in Singapore.
“Singapore’s latest round of property measures announced in January 2011 to curb speculation has started to take effect,” it said.
However, it added that the outlook for the residential property market remains positive, sustained by a better job market and stable economic growth.
The company sold 360 units overseas in Q1. “Despite cautious market sentiment as a result of the recent cooling measures and a seasonally quiet first quarter for property sales, township homes in China remain in demand,” it said.
Central Park City in Wuxi continued to attract buyers, selling 110 units in the first quarter this year. The company also plans to soft-launch The Seasons township in Shenyang this year. The new phase of 8 Park Avenue, The Botanica in Chengdu, the Seasons Park in Tianjin Eco-city and The Springdale in Shanghai are also expected to be launched this year.
In Singapore, Keppel Land intends to roll out a 622-unit residential development near Sengkang MRT station by end-2011.