CDL reports 41% y-o-y decrease in units sold in 1Q2022 due to cooling measures
City Developments (CDL) saw a decrease in domestic units closed in 1Q2022 finishing March 31 due to the residential property air-cooling actions revealed on Dec 16 2021. In its 1Q2022 operational update published on May 24, the Singapore-listed real estate group reported a 41% y-o-y decline in properties marketed to 188 units, with an overall sales worth of $477.9 million in the first quarter. In contrast, the group saw 319 units sold in 1Q2021, with an entire sales cost of $513.6 million.
Nevertheless, CDL is confident concerning the prospect for its asset advancement business for the remainder of the year, with additional domestic launches set out. “While transaction quantity is briefly influenced, the group predicts the residential property market to stay resilient and realty rates to hold firm due to moderate supply and also strong underlying fundamentals,” its operational update views.
Earlier this month, the group introduced Piccadilly Grand, its 407-unit, mixed-use property development joint enterprise assignment at Northumberland Street. The plan saw solid take-up amid its launch weekend, with 315 units (77%) sold at an average market price of $2,150 psf. Upcoming launches in the 2nd half of the year consist of a 639-unit joint venture executive apartment venture at Tengah Garden Walk, in addition to the 256-unit property factor of an integrated development at 80 Anson Road in the CBD.
CDL additionally undertook the purchase of Central Square for $315 million in March, which will be redeveloped beside CDL’s Central Mall assets into an increased mixed-use advancement. The group additionally accomplished the off-market purchase of a 179,007 sq ft site at 798 and 800 Upper Bukit Timah Road for $126.3 million, which will be redeveloped right into a 400-unit residential project.
In January, CDL was the number one bidder beside joint endeavor companion MCL Land for a 210,623 sq ft Government Land Sales (GLS) location at Jalan Tembusu. CDL and also MCL Land submitted the best proposal of $768 million ($1,302 psf per plot ratio). CDL specifies the recommended growth at the area will consist of 4 blocks of 20 to 21 storeys with a sum of 640 units.
During the first quarter, CDL even accomplished a variety of divestments, containing the sale of Tanglin Mall for $868 million through a public tender in February and the sale of Millennium Hilton Seoul for almost $1.25 billion. Even more just recently, the cumulative sale of Golden Mile Complex for $700 million, in which CDL holds 6.3% of the complete stake cost as well as 34.8% of the strata part, was publicized on May 6.