It said market sentiment appears to be more positive now compared to the first quarter, 'judging from the encouraging take-up in recent launches of mid-priced projects'.

But it added that market sentiment remained cautious due to 'slower economic growth and a challenging external environment'.

KepLand, which has projects in China, Vietnam and India, said that while regional property markets have been affected by higher mortgage rates and credit-tightening, housing demand will continue to grow.

Despite a lift in spirits, the firm had to report a 16.4 per cent slump in net profits for the three months to June 30 in the wake of the cooling market in Singapore and in the region.

Earnings came in at $52.7 million, down from $63 million in the same period a year ago, after property sales were almost halved.

Revenue plunged 48.2 per cent from $359.2 million to $185.9 million, partly on lower contributions from residential projects after they had been completed.

Singapore remains a stalwart for the firm, contributing over 70 per cent in net profits for the quarter.

The firm is expected to launch its prime residential projects, including Marina Bay Suites and Phase Two of Reflections at Keppel Bay, when sentiment improves.

KepLand also expects to benefit from the buoyant office market. It forecasts positive rental revisions that will be supported by strong demand for prime space over the next few years.

Earnings per share was 7.3 cents, down from 8.8 cents for the same period last year. Net asset value per share was $3.13 as at June 30, down from $3.18 at Dec 31.

Net profit for the six months was down 10 per cent at $112.96 million while revenue fell 29.9 per cent to $459 million. No dividend has been declared for the half-year ended June 30.

KepLand shares closed unchanged at $5 ahead of the earnings announcement yesterday. They have fallen by more than 30 per cent this year.

yanghw@sph.com.sg