SINGAPORE (Feb 10): Property developer Bukit Sembawang Estates has announced 3Q17 earnings of $5.4 million, down 78% from $24.3 million a year ago.
Revenue for the quarter declined 75.6% to $10.4 million from $42.6 million previously due to lower profit margins in comparison to that of 3Q16.
At the same time, gross profit fell 76.1% to $7.6 million mainly due to lower sales and lower profit recognition on development projects.
While cost of sales dropped 74.4% to $2.8 million, other operating expenses grew 69.8% to $1.9 million. This was mainly due to higher maintenance charges incurred and property taxes paid for unsold properties units that have obtained TOP, namely Skyline Residences and Paterson Collection.
During 3Q17, profits were recognised for Luxus Hills Phase 7 and Skyline Residences.
In its Friday filing to the SGX, the group notes how the fourth quarter of 2016 marks the thirteenth consecutive quarters of decline in private residential property prices.
“Buying sentiment for the Singapore residential property is expected to remain subdued in the current year with the continuing effects of cooling measures and slowing economic growth,” it adds.
Shares of Bukit Sembawang closed 0.41% lower at $4.90 on Friday.
