City Developments profit up slightly; warns of possible property market oversupply

City Developments third-quarter profit rose 1.8 per cent, helped by contributions from its office buildings.

Net income for the 3 months ended September 30 was S$134.5 million up from S$132.1 million a year earlier. Sales increased 3.4 percent to S$832.9 million.

Pretax profit from its rental properties including office buildings more than doubled to S$71.2 million.

“While the outlook for the property market in the medium to long-term is still positive, the group is cognizant that between 2014 and 2015, there could be some oversupply with more residential units being completed,” the company said.

However, it added that if the global economy turns around by that time, these concerns will be unwarranted.

The developer said it sold 48 of 55 units it put up for sale at UP@Robertson Quay. The Palette, a joint venture project with 892 units in northeastern Singapore, is more than 94 per cent sold, it said.

Source : Channel NewsAsia – 18 Jan 2013

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