Developer hit .7mil in extension prices

CapitaLand has received to spend $2.7 million to expand its deadline to market the remaining units at The Interlace.

This works out to S$21,000 per 7 psf, documented $ 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 because paying the fees, CapitaLand’s deadline New Launch Property to promote the left over properties there h AS been extended by another six months.

Last month, Property Developers’ Organization of Singapore (REDAS) President Augustine Tan estimated that developers in Singapore could bear nearly S$100 million in extension costs for failing to promote their remaining inventory in 2016.

Nevertheless, the developer transferred 222 residential units with a combined worth S$506 million in the city state throughout the period under review, up from your S$197 million it earned for marketing 69 units annually past.

In its newest earnings report, CapitaLand shown that it has identified purchasers for 89 percent of the units it’s established so far, adding the 55-unit The Nassim at Nassim Hill New Launch Condo and the 109-unit Victoria Park Villas in Victoria Park Road are set to be unveiled in H1 2016. Its Cairnhill Nine development also posted healthy sales, with 193 out of the 268 units changing hands as of last Thursday (14 April).

Meanwhile, CapitaLand’s sales decreased by 2.3 percent to S$894.2 million in Q1 2016 yearly, mainly due to lower contributions from its developments in Singapore and Vietnam.

Another cause for the lower sales is the lack of fair value increase of S$59.6 million arising from the utilization change of Ascott Heng Shan Shanghai in Q1 2015. But the drop in revenue was partly offset by greater contributions from residential sales New Launch Condo in China, as well as higher rents at its serviced residence business and CapitaGreen.

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