KEY POINTS:
The residential property market is continuing to perform strongly according to property development company CDL Investments New Zealand Ltd, which today reported a rise in annual profit.
CDL's annual after-tax profit rose 19.1 per cent to $10.9 million in the year to December 31.
The profit was achieved on a 28.9 per cent increase in revenue to $31.6m. The company increased its dividend to 2.3c a share, up 15 per cent on last year. The dividend carries tax credits and is payable on March 30.
Chairman Wong Hong Ren said the New Zealand property market was buoyant in 2006 despite predictions to the contrary.
Managing director B K Chiu said that while it was too early to make definitive comments about the prospects for this year, he believed that CDL Investments could continue to capitalise on positive market conditions into the first quarter of 2007.
"Trading conditions remain positive in the residential property markets generally and this has been reflected in the good start made to date."
But compliance and development costs, such as local government levies, were increasing and were impacting on property developers, he said.
- NZPA
