Singapore’s third-largest property developer, Keppel Land, has announced that its net profit in the fourth quarter of 2010 reached S$841 million, nearly eight times its S$106.9 million net profit in the previous year.
This was attributed to its S$426 million fair value gain from investment properties, as well as to its S$364-million gain from the sale of the company’s one-third interest in phase one of the Marina Bay Financial Centre (MBFC).
However, Q4 revenue dropped six percent to S$281.5 million from S$300.5 million over the same period in 2009, as the company completed more residential projects then.
For the FY2010, net profit increased 273 percent to S$1.05 billion from S$280.4 million in the previous year but revenue fell 14 percent to S$792.3 million from S$923.9 million.
Keppel Land, a wholly-owned subsidiary of Keppel Corp, sold around 5,250 units in 2010, up 50 percent, compared to 2009.
About 4,600 homes were sold overseas, mainly from the company’s residential projects in China. The company also sold more units in Singapore, including 480 units at The Lakefront Residences.
The company said it is optimistic about the conditions of both the residential and office markets in Singapore.
“In Singapore, prospective buyers may hold back their purchasing decision after the government’s recent anti-speculation measures to cool down the property market,” said Kevin Wong, Group Chief Executive of Keppel Land. “However, as the growth prospects for Singapore and Asia remain positive, the housing market will continue to attract both local and foreign buyers. While sales volume may be moderated, prices should remain stable.”
Mr. Wong said that several launches have been planned this year, including a new phase of The Lakefront Residences, as well as the remaining units at Marina Bay Suites and Reflections at Keppel Bay. He added that the Singapore prime office market will likely attract more demand, with the growth of the business, service and finance industries.