Chip Eng Seng Corporation’s net profit nearly doubled to $63.12 million in 2018 compared to $32.74 million in the previous year. The company believes the cooling measures are expected to continue to weigh on the Singapore property market.
Chip Eng Seng Corporation’s net profit nearly doubled to $63.12 million in 2018 compared to $32.74 million in the previous year, according to the construction and property development company in an SGX filing on Friday (22 Feb).
At the same time, overall revenue rose by 27 percent from $850.81 million to $1.08 billion. Of this, the group’s property development business accounted for the lion’s share (76.71 percent) of the overall income.
“Contributions rose 44.9 percent from $571.68 million to $828.64 million over 2017 to 2018. This was mainly attributed to progressive revenue recognition from High Park Residences, Grandeur Park Residences and Park Colonial, along with progressive handover of townhouses of Williamsons Estate in Doncaster, Melbourne and sales of property sites in Australia.”
Chip Eng Seng also said the cooling measures introduced last year “are expected to continue to weigh on the property market”, with the price growth of private residential properties easing after the implementation of the curbs.
“Despite the challenging market conditions, sales to-date for Park Colonial rose further to 70.2 percent. As for Grandeur Park Residences, sales have improved slightly to 97.1 percent, it noted, adding that it plans to launch its Changi Garden project by Q2 2019.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email email@example.com