http://www.businesstimes.com.sg/comp...llenge-3-firms

Property cooling moves pose challenge: 3 firms

By Mindy Tan

[email protected]@MindyTanBT

14 Nov


THE property cooling measures will continue to exert pressure, making the operating environment challenging, said three firms on Thursday, as they released their results for the three months ended September.

Sing Holdings, saying it will monitor the market to identify opportune moments to market its development projects, said: "With the Total Debt Servicing Framework and cooling measures, the group expects the Singapore property market to continue to be lacklustre, with weak purchasing sentiments."

Sing Holding's net profit slid 90.9 per cent in its third quarter ended September, from S$3.4 million to S$307,000 on the back of revenue falling 50.8 per cent from S$31.3 million to S$15.4 million. Its counter ended trading at 34 Singapore cents.

Posting a similar slump in results was Hotel Properties Limited. Its net profit for the quarter ended September fell from S$50.4 million to S$15.1 million; revenue shrank from S$180.1 million to S$146.0 million. Despite higher contributions from the group's resorts in the Maldives and Bali, it recorded a lower revenue due to the completion of the Tomlinson Heights condominium development in March 2014.

Hotel Properties Ltd said that, in addition to weak residential outlook in Singapore, its hotels and resorts - which traditionally perform well in the last quarter - can expect challenges arising from political uncertainties and the potential escalation of the Ebola outbreak. Its counter ended trading up one cent at S$4.10.

Separately, Design Studio Group noted that the property cooling measures will likely result in fewer projects available for award in the markets it operates, namely Singapore, Malaysia and China.

It said: "This may lead to greater competition and may affect our ability to secure new projects. In addition, the dampening of the property market together with the tightening of foreign labour supply, particularly in Singapore, will slow down the realisation of our order book on hand."

Its net profit for the third quarter ended September rose from S$2.3 million to S$5.1 million. Revenue rose 6 per cent, from S$41.7 million to S$44.2 million.