Hiap Hoe's home sales soar amid 'tepid' market

Developer Hiap Hoe will step up marketing efforts to move units at its residential projects amid a "tepid" market, it said on Monday.

Its remarks came as it posted a 149.8 per cent increase in third-quarter earnings to $33.3 million, thanks to higher revenue from home sales.

Revenue for the three months to Sept 30 soared 98.6 per cent to $81.1 million from the same period a year earlier.

Hiap Hoe said this increase was due to progressive revenue recognition from the sale of residential projects.

It recognised revenue of $80.5 million, much higher than the $24.9 million recognised in the corresponding period a year ago.

These projects included the 32-unit Signature at Lewis in Tanglin, 61-unit Skyline 360 in River Valley and 132-unit Waterscape at Cavenagh in Newton. All three are freehold.

Signature at Lewis was completed in 2011 and Skyline 360 last year, while Waterscape at Cavenagh is still under construction.

None of them is fully sold, according to Urban Redevelopment Authority data.

Hiap Hoe also said on Monday that it has begun building its industrial project at Kallang Pudding. It also noted that the hotels within its $300 million Zhongshan Park integrated development in Balestier Road are fully operational.

Hiap Hoe embarked on its overseas expansion in the third quarter with a foray into Australia.

It bought two developments in Melbourne in September, which it said could be redeveloped into integrated projects.

It also inked a partnership with Australian construction company Probuild Construction last month.

The firm said it would "continue to adopt a prudent approach in its land acquisition programme (in Singapore) to ensure that it remains well positioned in a potentially challenging environment".

Earnings per share for the quarter came in at 7.07 cents, up from 2.83 cents the preceding year. Net asset value per share was 78.71 cents as at Sept 30, up from 64.94 cents as at Dec 31 last year.

Hiap Hoe shares closed flat at 81.5 cents on Monday.

melissat@sph.com.sg

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