http://www.straitstimes.com/archive/...urges-20141113
Ease developer rules, CDL urges
Published on Nov 13, 2014 1:23 AM
By Rennie Whang
DEVELOPER City Developments (CDL) sees "no signs of any rebound" in home prices and called for an easing of rules which force builders to complete projects in a specified time.
It also noted in its third-quarter results yesterday that development land remains pricey, mainly due to foreign companies, particularly those from China, entering the local property market.
The company also noted that restrictions imposed by qualifying certificate (QC) rules, which make it difficult for developers to buy plots in the private market, mean competition for prime sites is "still keen" as companies need to restock their land bank.
QC rules mean a developer has to finish building a residential project within five years of buying the site and sell the units within two years of completion. A developer that wants extra time on either deadline has to pay extension charges.
The remarks came as the company reported a 4.7 per cent rise in net profit to $127.2 million, thanks in part to the completion of its 602-unit Blossom Residences executive condominium (EC).
Revenue rose 58.3 per cent in the three months to Sept 30 to $1.32 billion.
The property development segment was the biggest earnings contributor, with turnover up 130 per cent to $750.4 million, and pre-tax profits up 12.3 per cent to $99.8 million.
Profits were booked from H2O Residences, Jewel @ Buangkok, UP @ Robertson Quay, and Buckley Classique, which obtained its temporary occupation permit in August.
Contributions also came for the first time from The Venue Residences and Shoppes, and Blossom Residences EC, which is fully sold.
Revenue from the hotels segment increased 13.7 per cent in the quarter to $444.3 million, with contributions from two hotels acquired in the first half of the year and stronger performances from recently refurbished outlets. Earnings per share were 14 cents for the quarter, up from 13.4 cents a year earlier, while net asset value was $8.79 at Sept 30, up from $8.50 at Dec 31.
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