Developer hit .7mil in extension prices

CapitaLand had had to spend $2.7 million to extend its deadline to sell the remaining units at The Interlace.

This calculates to S$21,000 per 7 psf, noted $ unit or S TODAYonline.

Initially, the remaining flats at the 1,040-unit condominium on Depot Road should have been disposed by 13 March, but since paying the charges, CapitaLand’s deadline to sell the leftover properties there has been extended by another six months.

Still, the developer transferred 222 residential units with a combined worth S$506 million in the city state New Launches Singapore throughout the period under review, up from the S$197 million it gained for promoting 69 units annually ago.

Last month, Real Estate Developers’ Association of Singapore (REDAS) President Augustine Tan estimated that developers in Singapore could bear almost S$100 million in extension costs for failing to sell their remaining stock in 2016.

Its Cairnhill Nine improvement also posted strong sales, with 193 out of the 268 units changing hands as of last Thursday (14 April).

Meanwhile, CapitaLand’s revenue dropped by 2.3 percent to S$894.2 million in Q1 2016 on an annual basis, mainly due to lower contributions from its developments in Singapore and Viet Nam.

Another cause for the lower sales is the lack of good value gain of S$59.6 million arising from the usage change of Ascott Heng Shan Shanghai in Q1 2015. But the fall in earnings was partially offset by greater contributions from residential sales in China, in addition to rents at CapitaGreen New Launch Property and its serviced residence company.

Despite the drop in earnings, CapitLand’s net income after taxation and minority interests (PATMI) soared by 35.4 percent year-on-year to S$218.3 million in Q1 2016, thanks to the divestment of a house in China, Somerset ZhongGuanCun Beijing.

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