Wing Tai Bullish Despite End Of Deferred Payment Scheme

Source : The Straits Times, Oct 31, 2007

THE scrapping of the deferred payment scheme for new homes has failed to dampen the optimism of property group Wing Tai Holdings.

It can still offer the scheme on two yet-to-be-launched condominiums as it had obtained approval before the Government withdrew the scheme last week. The scheme allowed homebuyers to postpone most payments on uncompleted property.

The move to end the scheme was aimed at deterring speculators and forcing people to be more prudent when committing to pricey real estate.

Wing Tai chief operating officer Tan Hwee Bin told The Straits Times yesterday that ending the scheme was a good idea as it would create a basis for strong, sustainable market growth in the long run.

'There will be a short-term impact for the market as a whole as buyers will have to manage their cash flows better.'

But she did not believe that Wing Tai itself would be affected, given its portfolio of largely upmarket developments.

'About 80 per cent are located within districts 9, 10 and 11, and many of our clients are high net-worth individuals and serious investors as opposed to speculators.'

Wing Tai still has approval to offer deferred payments for its L'VIV condo in Newton Road and Belle Vue Residences in Oxley Walk - both set to be launched in the first half of next year.

Mainboard-listed Wing Tai yesterday said net earnings for the three months ended Sept 30 doubled to $61.8 million due to higher contributions from its VisionCrest and Casa Merah projects.

Revenues fell to $100.2 million from $164.8 million previously. Earnings per share rose to 8.58 cents from 4.29 cents while net asset value per share went up to $2.14 as at Sept 30, from $2.07 as at June 30.

Wing Tai also intends to increase its stable of retail and lifestyle brands next year. These businesses now contribute more than 10 per cent of revenues.

It currently has 18 brands in 129 outlets in Singapore, including well-known names such as Topman and Warehouse, sports giants Nike and Adidas, and mass market labels such as G2000, and Japanese restaurant chain Yoshinoya.

Ms Tan said Wing Tai is in talks with several mid- to high-end brands from Europe, Asia and the United States about coming to Singapore, but declined to reveal details.

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Wing Tai can still offer deferred payments for two upcoming launches in Newton Road and Oxley Walk says Chief Operating Officer Tan Hwee Bin.