Keppel Land’s total homes sales slid by four percent to 5,480 units last year on an annual basis due to cooling measures in China and the timing of development launches in Vietnam, reported the Singapore Business Review.
According to DBS Equity Research, Keppel Corporation’s real estate arm found buyers for 270 dwellings in Indonesia, 380 in Singapore, 1,110 in Vietnam and 3,725 residential properties in China.
Despite the dip in home sales, its earnings grew by 10 percent year-on-year to $685 million in 2017. The company is also expected to unveil 16,780 houses until 2020, or about 5,593 units per annum, out of its 63,000-unit overall pipeline.
Furthermore, DBS Equity Research said that 70 percent of Keppel Land’s landbank for residential projects were bought at a relatively lower cost over seven years ago. Hence, the firm’s net asset value is anticipated to improve after these housing developments are completed.
This article was edited by Keshia Faculin.