Frasers Property’s profit climbs on ‘buoyant’ Singapore market
By Krystal Chia
(Bloomberg) — Frasers Property Ltd. posted a 43% rise in first-half profit as the Singapore developer benefited from a recovery in property prices and the hospitality business.
Net income rose to S$225.8 million ($171 million) in the six months ended March 31, the company said in a filing to the Singapore Exchange on Thursday.
The company benefited from higher sales and prices amid “Singapore’s buoyant residential market,” it said. The easing of pandemic restrictions globally also contributed to improved results for its hospitality operations across countries.
The business environment has improved compared with a year ago, but inflation and interest-rate hikes could continue to pose a challenge for the real estate sector, group Chief Executive Officer Panote Sirivadhanabhakdi said in a media release.
Singapore’s home prices have risen for 12th straight quarters, prompting authorities to raise stamp duty for some buyers late last month. The move includes a 60% tax for foreigners, though it is not expected to affect the mass market.
The higher taxes are “not expected to have a material impact on current projects,” the company said.
Growth for Frasers Property this year could come from China’s reopening and completed developments, mainly in Australia, according to Bloomberg Intelligence analyst Ken Foong. Investment in UK business parks could remain a drag, he added.
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