CapitaLand’s local home sales drop as China deals hit record high

It only sold 244 units in FY15.

CapitaLand reported lower sales for its residential projects in Singapore in 2015. The country’s largest developer sold a total of 244 residential units in the past year, 12.2% lower compared to 278 units sold in FY14.

The total value of its domestic sales also dropped to $559 million in FY15, compared to $561 million in the preceding year.

Meanwhile, CapitaLand’s home sales in China hit a record high last year. The group sold a total of 9,402 units with a value of RMB 15.4 billion ($3.4 billion) in the Mainland last year, almost double compared to the 4,961 units that it sold in 2014.

As a result, Singapore’s contribution to group earnings dropped to 39.7%, compared to 52.7% in 2014. Meanwhile, China’s contribution to total earnings rose to 39.3%, from 30.8% in 2014.

CapitaLand said that it expects the impact of the property cooling measures to continue to weigh on the domestic market. The group also said that three projects—Cairnhill Road, The Nassim and Victoria Park Villas—will be launch-ready in 1H 2016. 

CapitaLand expects residential sales in China to continue to perform steadily in 2016, as favorable government policies are anticipated to have a positive impact on the residential market. 

In 2016, CapitaLand has over 7,000 launch-ready units in CHina and is expected to complete over 9,000 units.