Property developer CapitaLand says it is unlikely to take an aggressive position in Singapore’s residential property sector in this current market cycle.
Group CEO Lim Ming Yan expects home prices to continue to moderating this year.
Speaking to Channel NewsAsia at an earnings briefing on Wednesday, Mr Lim says the market consensus is for home prices to fall by five per cent to slightly over 10 per cent.
CapitaLand on Wednesday posted a 46 per cent drop in fourth quarter earnings to S$143 million due to one-off losses from the sale of a 20 per cent stake in Australia’s Australand.
In Singapore, CapitaLand sold 109 residential units in the last quarter of 2013.
That took its sales for the whole year to a new record high at 1,260 units valued at S$2.4 billion.
Mr Lim said: “What we have in Singapore residential is less than 10 per cent of our total portfolio, so compared to many of our peers in Singapore, we are one of the least exposed developers.
“We will be very selective about what we will be doing in Singapore. We will want to continue to look at Singapore, obviously it (property sector) moves in cycles so this may not be the cycle for us to take aggressive position in the residential sector.”
Source : Channel NewsAsia – 19 Feb 2014