Property developer UOL Group posted a 13 percent decline in net attributable profit for Q3 2012 to S$87.8 million, while revenue also fell 33 percent to S$277.7 million from S$413.3 million during the same period last year.
The weaker results were attributed to lower contribution from property development revenue to S$133.7 million compared with S$267.4 million last year.
Moreover, the gross profit margin increased to 43 percent in Q3 this year, up from 34 percent in 2011 on the back of higher revenue from property development in Q3 last year.
UOL’s net attributable profit for the first nine months to September stood at S$343.5 million, down 37 percent from S$543.9 million over the same period last year, mainly due to lower fair value gains on investment properties and associated companies as well as lower property development income.
Gwee Lian Kheng, Chief Executive of UOL Group, said high liquidity and low interest rates continue to drive the country’s residential property market, but he expects a moderate increase in prices with the recent restrictions on home loan tenures and with more supply coming.
“With the economic slowdown, some pressure could also be felt in office rents although we expect the retail sector to remain stable.”
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