City Developments (CityDev) said fourth-quarter profit rose 71 per cent after home prices surged to an 11-year high in the city state.
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Net income rose to $235 million in the three months ended Dec 31, from $137.3 million a year earlier, the company said. Full-year profit climbed to $725 million, or 76 cents a share, from $351.7 million, or 36.6 cents. CityDev and rivals CapitaLand and Keppel Land may face declining demand in Singapore this year amid concerns the economy could fall into a recession. Government data showed private home prices surged 31 per cent last year, but prices rose at a slower pace after the Government took steps to cool the market and the United States subprime crisis dampened sentiment.
“Moving forward, the performance of the property market will largely depend on how the sub-prime crisis pans out and its impact on global economies,” CityDev said. “Transaction volume and rental increase have slowed down in the fourth quarter.”
CityDev shares closed up 1.3 per cent at $12.48.
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