SINGAPORE - Second quarter net profit at property developer UOL Group plunged 55 per cent to S$68.8 million due mainly to fair value losses on investment properties.

Fair value losses and other losses added up to S$21.5 million, against a S$53.8 million gain in the previous corresponding quarter.

Revenue in the three months ended June 30 rose 6 per cent to S$363.6 million from a year ago, due mainly to higher progressive revenue recognition from on-going projects such as Riverbank@Fernvale, Seventy Saint Patrick's, Botanique at Bartley as well as Principal Garden.

Property development revenue was up 14 per cent to S$185.5 million, while the hotel business also improved marginally due to higher revenue contributions mainly from Pan Pacific Tianjin and Parkroyal Yangon.

"Most of our residential projects have achieved relatively good take-up rate due to our strong product attributes. But with the intense competition and lack of confirmed sites in the government land sales, our concern is that land prices will be driven to an unhealthy level," said UOL deputy group chief executive officer Liam Wee Sin.

Earnings per share for the quarter was 8.64 cents, down from 19.36 cents a year ago. Net asset value per share was S$9.80 as at June 30, from S$9.91 as at Dec 31 last year.