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At an average size of at least 15,000 sf each, the six
plots generated a total net profit of $44.6 million,
demonstrating the resilience of the very top tier of the
residential market.
Interest in the residential market revived towards the
end of the year. Residential take-up rose to 2,839 new
units in the fourth quarter with developers offering the
deferred payment scheme, lower prices and banks
giving attractive mortgage rates. The demand in the
mass and mid-market segments rose, pushing the full
year take-up to surge by 28% to 6,917 units.
The short-term outlook for the office market will
continue to be affected by economic uncertainties.
However, the medium-term prospects are positive on
hopes of a US-led recovery in 2002, and the limited
new supply of prime office space in the next few years.
Overseas
Keppel Land’s goal of growing its overseas investments
from 20% to 30% remains unchanged as the rationale
is to diversify out of the Singapore market to achieve
sustainable earnings growth.
Keppel Land sold 450 units from three projects in less
than three months. Launched in November 2001,
The Edgewater achieved 100% sales while Amaranda
Gardens achieved 98% sales. Another development in
Tanjong Katong, Butterworth 8 which was launched in
January 2002, has also achieved 100% sales.
With the successful sales, the Company will embark on
the securitisation of the sales proceeds of $380 million
to bring forward the cashflow.
Office
After a sterling year in 2000 when pent-up demand hit
a record high of 4.22 million sf, office take-up shrank
significantly in 2001. With the shake-up in the IT
industry and the consolidation in the financial services
sector, office occupancy slipped to 1.12 million sf.
Despite the softer market, Keppel Land’s well-managed
and well-located office buildings enjoyed full or
close-to-full occupancies, achieving higher rentals and
take-up than the market.
It will continue with its strategy of direct acquisition of
trading development projects, and strategic acquisition
of property development companies.
Among the various segments in the property market in
Asia, it has identified local housing development as a
promising niche as it is supported by strong aspirations
of home ownership, especially among people in the
middle-income group.
For the immediate term, the geographical focus will be
centred on North Asia, especially China. Elsewhere in
the region, the Company will also focus on local
housing in countries where home ownership is
growing.
China
With China’s entry into the World Trade Organisation
and its successful bid to host the 2008 Olympics,
foreign direct investment is expected to increase, and
this is expected to have a multiplier effect on the
economy.
Chairman’s Message
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