UPDATE 1-Singapore's Keppel Land Q2 net profit falls 16 pct

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By Daryl Loo

SINGAPORE, July 30 (Reuters) - Keppel Land (KLAN.SI), Singapore's third-biggest property developer by market value, posted on Wednesday a 16.4 percent fall in quarterly profit, reflecting a decline in property sales in Singapore and abroad.

KepLand, which earns the bulk of its income from property sales in countries such as Singapore, China, and Vietnam, earned S$52.7 million ($38.6 million) in the April-June period, down from S$63 million a year ago.

Singapore's developers are expected to report poorer sales after worries over a slowing global economic outlook sparked a steep drop in sales volumes. Some analysts have predicted that home prices could fall up to 40 percent over the next three years.[ID:nSIN244417]

Given the dismal outlook, KepLand said it would wait for market conditions to improve before launching new projects for sale.

"Despite the challenges of slower growth and high inflation faced by regional economies, Asia's long-term growth story remains intact, led by China and India with their large domestic markets supporting the region," the company said in a statement.

KepLand, 53 percent-owned by conglomerate Keppel Corp (KPLM.SI), is seen posting an average 57 percent drop in earnings to S$336.2 million for calendar year 2008, a poll of 15 analysts by Reuters Estimates showed.

Second-quarter sales fell 48 percent to S$185.9 million from a year ago.