CapitaLand sets sights away from home as local returns falter

Contributions from Singapore shrunk to 40% in 2015.

The property firm is setting its sails to foreign shores as local contributions continue to shrink in percentage, while contributions from China have doubled to 39%.

According to a report by RHB Research, the search for better returns is the key reason in the shift in strategy of focusing on bigger markets with huge population bases.

However, it’s still not smooth sailing for CapitaLand.

“However, tough real estate market conditions in China and Singapore, on the back of a slowing economy, tighter policy measures and increased competitive measures, have made it difficult to execute good quality acquisitions whilst squeezing margins,” the report added.

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