(Adds details on earnings, comments on Singapore property
SINGAPORE Aug 14 City Developments Ltd
, Southeast Asia's second-largest property developer,
reported a 90 percent rise in quarterly core net profit due to
earnings contributions from new projects.
Core earnings came in at S$138 million ($110.5 million)in
the second quarter compared with S$73 million a year earlier,
excluding one-off gains, the Singapore-based company said in a
statement on Thursday.
The maiden contributions offset a slowdown in demand from
some segments because of measures taken by the Singapore
government to cool the country's real estate market. City Dev
said it was accelerating its overseas expansion in response,
planning to establish platforms in Japan and Australia by the
end of the year.
The Singapore government's measures have led to a sharp fall
in the volume of property transactions and a gradual drop in
prices. City Dev said the measures are particularly affecting
its business in the luxury segment of the market.
"Foreign buyers especially, have been deterred by the
Additional Buyer's Stamp Duties (ABSD) and other property
cooling measures, and have shifted and are still shifting their
investments to other markets outside of Singapore," the company
(1 US dollar = 1.2488 Singapore dollar)
(Reporting by Rachel Armstrong; Editing by Ryan Woo)