SINGAPORE – City Developments (CDL) saw property sales slow in the first quarter ended March 31 due to the absence of new launches during the period.
The group and its joint-venture associates sold 88 units with a total value of $213.2 million, compared with 188 units at $477.9 million in the same period last year, CDL said on May 19.
However, despite the challenging global outlook, it is confident of navigating the uncertainties and remains on the lookout for investment opportunities.
Property cooling measures introduced in April also “serve as a continued reminder that the group should not be overly reliant on a specific country or asset class”.
It had to reschedule a preview for its 246-unit freehold project Newport Residences, originally planned for April 29, since the market would “need time to absorb the measures”.
“The group will monitor the market conditions closely and launch the project at the appropriate time,” it added.
Less than three weeks prior, CDL had launched its 638-unit joint-venture (JV) condominium Tembusu Grand, of which about 56 per cent has been sold at an average price of $2,465 per sq ft.
The company noted that around 90 per cent of buyers are Singaporeans while 8 per cent are permanent residents and 2 per cent foreigners.
In the near term, CDL expects cooling measures to affect projects with a higher proportion of foreign demand, “typically high-end luxury properties in prime districts”.
“The group expects minimal impact on the mass and mid-tier segments where most buyers are locals and PRs, as evidenced by the three recent launches that took place after the cooling measures were announced,” CDL noted.
In the second half of this year, it plans to launch the 408-unit The Myst in Upper Bukit Timah Road.
Two of its fully sold projects obtained their temporary occupation permits in January and April. They are the 820-unit JV executive condominium (EC) Piermont Grand and 188-unit Haus on Handy respectively.
CDL said the group will recognise the revenue and profit from Piermont Grand in their entirety in the first quarter, in line with prevailing accounting standards.
Among its other projects, Piccadilly Grand, CanningHill Piers, Irwell Hill Residences and Amber Park are above 90 per cent sold.
In terms of its investment properties, CDL said its office portfolio reported a committed occupancy of 94.3 per cent as at March 31, higher than the islandwide rate of 88.8 per cent.
Its retail portfolio has a committed occupancy of 97.6 per cent, higher than the islandwide figure of 92.4 per cent.
As for its hotel operations, CDL reported a revenue per available room (RevPAR) growth of 65.4 per cent to $131.20 for the first quarter, up from $79.30 in the same quarter last year.
This was fuelled by a strong recovery in Asia, Australia and New Zealand.
Singapore hotels recorded an 88.9 per cent year-on-year increase in RevPAR, mainly due to higher average room rates.
Other hotels in Asia clocked a 150.2 per cent year-on-year growth, driven by the strong performance in Taipei and Beijing.
CDL’s net gearing ratio as at end March stood at 55 per cent, following the acquisition of St Katharine Docks in central London in the same month.
The group said its geographically diversified portfolio across various business segments enables it to maintain stability while embracing growth. It added that it will stay nimble, forward-looking and adaptive to changing market conditions.
CDL shares fell two cents, or 0.3 per cent, to close at $6.89 on Friday, ahead of the update.
