CDL reports 41% y-o-y decrease in units sold in 1Q2022 due to cooling measures

Earlier this month, the group opened Piccadilly Grand, its 407-unit, mixed-use innovation joint venture property at Northumberland Street. The plan saw solid take-up in the course of its launch weekend, with 315 units (77%) cost a standard asking price of $2,150 psf. Upcoming release in the 2nd part of the year feature a 639-unit joint enterprise exec condominium property at Tengah Garden Walk, as well as the 256-unit property component of an integrated development at 80 Anson Road in the CBD.

Piccadilly Grand condo

City Developments (CDL) saw a decline in domestic units closed in 1Q2022 finishing March 31 due to the building air-cooling actions released on Dec 16 2021. In its 1Q2022 working update released on May 24, the Singapore-listed building group declared a 41% y-o-y reduction in real estates sold to 188 units, with an entire sales value of $477.9 million in the initial quarter. In comparison, the group saw 319 units offered in 1Q2021, with a whole sales worth of $513.6 million.

Nevertheless, CDL is positive concerning the probability for its asset growth business for the rest of the year, with additional property launches set out. “While deal amount is briefly influenced, the team expects the residence market to continue to be durable and realty prices to hold firm as a result of modest supply and solid hidden fundamentals,” its operational update reviews.

In January, CDL was the number one prospective buyer along with joint venture partner MCL Land for a 210,623 sq ft Government Land Sales (GLS) location at Jalan Tembusu. CDL and also MCL Land sent the top proposal of $768 million ($1,302 psf per plot ratio). CDL explains the recommended growth at the spot will comprise four blocks of 20 to 21 floors with a total of 640 units.

CDL likewise performed the purchase of Central Square for $315 million in March, which will be redeveloped together with CDL’s Central Shopping center assets into an enlarged mixed-use advancement. The group additionally executed the off-market purchase of a 179,007 sq ft area at 798 and 800 Upper Bukit Timah Road for $126.3 million, which will be redeveloped inside a 400-unit household job.

During the 1st quarter, CDL even finished a number of divestments, containing the sale of Tanglin Shopping center for $868 million via a public tender in February as well as the sale of Millennium Hilton Seoul for approximately $1.25 billion. Even more recently, the cumulative sale of Golden Mile Complex for $700 million, in which CDL holds 6.3% of the entire share price and 34.8% of the strata area, was stated on May 6.