Two of Singapore’s largest property companies reported a mixed set of results Wednesday, as high interest rates and a global real estate slowdown weighed on performance in the first half.
The country’s largest listed developer City Developments Ltd. saw net income increase by 32 percent to S$87.8 million in the six months ended June 30, compared with S$66.5 million recorded a year before due to divestment gains. But revenue plunged by 42 percent to S$1.56 billion. CapitaLand Investment has suffered particularly due to a major hit from China, which remains its largest market outside of Southeast Asia. The world’s second largest economy, which remains mired in a property slump, made up 35 percent of the firm’s S$134 billion of assets under management as of the end of June.
COO Lim also said he sees structural opportunities in Australia including in credit, lodging and living segments. The company is looking at Japan lodging and data centers, as well as Korea grade-A offices.“The real estate sector faced considerable headwinds from macroeconomic conditions and higher financing costs,” City Developments’ Chief Executive Officer Sherman Kwek said in a statement.