Singapore renowned developer UOL Group Ltd saw a decline in net profit by 55% to S$68.8 million in Q2 2016, as fair value losses on investment properties.
The group registered a total of S$21.5 million slumped against a S$53.8 million increase in first quarter of 2016.
However, UOL's revenue in second quarter climbed by 6% to S$363.6 million from a year ago, this was due to higher progressive revenue recognised from residential development such as Seventy Saint Patrick’s, Riverbank@Fernvale, Principal Garden and Botanique at Bartley.
Notably, revenue of property development in the quarter was increase by 14% to S$185.5 million.
According to Deputy Group CEO Liam Wee Sin, UOL group remains cautious on housing market outlook.
Most of residential development have achieved a relatively high take-up mainly due to healthy product attributes. However with the lack of confirmed sites in the sales of government land and intense competition, the group concern is that prices of land may lead to a weak level.