Property developer Hongkong Land Holdings has posted a 70 percent increase in net profit to US$1.39 billion in the first half of 2010, following a US$402-million loss in 2009.
The company said H1 profit, excluding revaluation losses or gains, increased to US$477 million from US$281 million a year ago, which was mainly attributed to the completion of its two residential projects in Singapore.
The average office rents in the central business district of Hong Kong rose 17 percent for the fiscal year that ended in May. This was attributed to the robust demand for office and retail space from several financial services companies, according to the HK government’s statistics. The Hong Kong economy grew at the fastest pace in four years in Q1 2010, expanding 8.2 percent from the previous year.
“The commercial property markets of Hong Kong and Singapore should remain stable as the year progresses, while conditions in the group’s residential markets are mixed,” said Simon Keswick, chairman of HK Land.
“The second-half result will benefit from the completion of further residential units, although the contribution will be less than in the first half.”
The company noted that the completion of its two residential projects in Singapore, Waterfall Gardens and Marina Bay Residences, has significantly helped boost the company’s profit for the first half of this year.