SINGAPORE (Reuters) - City Developments, Southeast Asia's second-largest property developer, reported a 90 per cent rise in quarterly core net profit due to earnings contributions from new projects.
Core earnings came in at $138 million in the second quarter compared with $73 million a year earlier, excluding one-off gains, the Singapore-based company said in a statement on Thursday.
The maiden contributions offset a slowdown in demand from some segments because of measures taken by the Singapore government to cool the country's real estate market.
City Dev said it was accelerating its overseas expansion in response, planning to establish platforms in Japan and Australia by the end of the year.
The Singapore government's measures have led to a sharp fall in the volume of property transactions and a gradual drop in prices. City Dev said the measures are particularly affecting its business in the luxury segment of the market.
"Foreign buyers especially, have been deterred by the Additional Buyer's Stamp Duties (ABSD) and other property cooling measures, and have shifted and are still shifting their investments to other markets outside of Singapore," the company said.