New home sales on hold: CDL

AMID the weakening property market, City Developments said it will delay selling homes at new projects for now.

About 130 units remained unsold among the homes it had already released for sale. At the same time, CDL and its partners in the South Beach development, located downtown, have agreed to delay construction on expectations that building costs will retreat, said the company.

Singapore’s second-largest developer by assets revealed this yesterday, as it posted a drop in earnings for the three months ended Sept 30. Its net profit fell 11 per cent to $150.8 million due to weak demand at its property and hotel businesses. Revenue declined14 per cent to $688.2 million.

Despite an “uncertain” global economic outlook, CDL expects to show a profit in its property development, hotel operations and investment properties business over the next 12 months.

Source : Today – 14 Nov 2008

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