Wing Tai snubs land sales exercises as property downtrend continues

Its current land bank is more than enough.

Wing Tai is not keen on snapping up more land given the headwinds plaguing its key markets.

A report by CIMB highlighted that Wing Tai;s main markets of Singapore, Malaysia, and China are all racked by varying issues.

"Management expects the environment to remain challenging for the residential sector and prefers to be conservative in terms of land banking. Management deems its existing land bank in these countries to be sufficient for the next few years," said CIMB.

Wing Tai reported that its net profit fell 41% to $150.3m in FY15. Its core property development saw a 47% year-on-year profit drop.

The group’s property development earnings came largely from The Tembusu, Le Nouvel Ardmore, Foresque Residences and Helios Residences in Singapore and The Lakeview in China.

For the full year, Wing Tai sold 436 residential units valued at $417m, down from last year’s 565 units valued at $618m.