Singapore Listed property developer Chip Eng Seng recent earnings have nosedived as earnings from its core business drop. This is the results released today after findings note that there is a significant drop in earnings for the property developer due to sluggish residential sales as well as higher borrowing cost. Net profit for Chip Eng Seng dropped as there is drop in sales from the property’s developer own project such as Grandeur Park Residences where the larger units are still available for sale. Please see other new launches such as Midtown Gardens location here at Tan Quee Lan Street.
The group’s profit also take a hit as there is an earlier TOP to High Park Residences owners and cost are incurred in the handing of the unit to the owners. Also, there were expenses incurred due to the construction of a new showflat Kopar at Newton which is a new development at Newton MRT Station. More expenses were also incurred from the construction of Park Colonial showflat as well at Potong Pasir. Due to the new virus Covid-19, Chip Eng Seng might suspend the sales of Kopar at Newton and launch it at a more appropriate time. Earnings per share fell to 2.04 cents for the quarter, from 4.25 Singapore cents, while net asset value registered was 117.35 Singapore cents per share.
Other business for Chip Eng Seng also suffered. Chip Eng Seng, which has hospitality assets in Singapore, Australia and the Maldives, warned that the hotels “could see substantial decline in its occupancy rates in the next few months” if the Covid-19 epidemic continues to be present and affect international travel demand.