CDL property sales slow to $281m in Q3 amid low inventory of unsold units

Sales have surged to 1,417 units worth $2.8 billion as at Nov 30, mainly led by the October launch of Copen Grand executive condominium. PHOTO: CITY DEVELOPMENTS LIMITED

SINGAPORE - City Developments Limited (CDL) saw sales slow in its third quarter ended Sept 30, as the property player had a low inventory of unsold units with no new launches in the quarter.

The group and its joint venture associates sold 95 units with a total value of $281 million, CDL said in its third-quarter operational results on Wednesday.

For the first nine months ended Sept 30, the group and its joint venture associates sold 802 units worth $1.9 billion, compared with 1,382 units worth $2.5 billion in the same period a year ago.

CDL noted, however, that sales have surged to 1,417 units worth $2.8 billion as at Nov 30, mainly led by the October launch of its joint venture project, Copen Grand executive condominium (EC).

The response for the EC was “overwhelming”, with an average launch price of $1,300 per square foot, CDL said.

For its investment properties in Singapore, CDL noted that its office portfolio was resilient with 94.3 per cent committed occupancy, while its retail portfolio also remained healthy with 95.3 per cent committed occupancy.

With the easing of travel restrictions and pent-up travel demand, CDL’s hotels also registered a global revenue per available room growth of 88.9 per cent to $161.90 for the third quarter, from $85.70 in the same period a year ago.

As for its fund management segment, CDL said it is placing a temporary pause on its initial public offering aspirations for its United Kingdom commercial properties until the market stabilises.

Looking ahead, while CDL noted that rising interest rates, inflationary concerns and Singapore’s property cooling measures may cause potential buyers to be more cautious in their decision-making, it expects the property market to remain resilient given the low stock levels.

“Moreover, with a recovering economy, Singapore’s political stability and its strength as a financial hub, there is sustained interest from local buyers, foreign investors and high-net-worth individuals,” CDL added.

CDL shares closed up two cents, or 0.24 per cent, at $8.31 on Thursday, after its business update. THE BUSINESS TIMES

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