Keppel Corp’s China property market to recover in medium term

The firm’s interests in June may contribute to the turnaround.

After months of strict restrictions in China, Keppel Corporation’s property market in China may see recovery in the next six to nine months.

According to UOB Kay Hian’s analysis, the first half of 2022 for Keppel Corporation’s business with China suffered due to the zero COVID-19 strategy there.

“As a result, the country’s big developers have experienced more than 50% year-on-year (YoY) decline in units sold while Keppel Corporation saw a 69% yoy decline in 1H22,” read the report.

This struggle was offset by prices that held up well due to government policy support.

UOB Kay Hian, however, noted that figures for the company’s interests in June showed recovery.

“Keppel Corporation management revealed that as part of its financial reporting process, it had reviewed its projects under development and concluded that there is currently no need for any impairments across,” it said.