CDL reports 41% y-o-y decrease in units sold in 1Q2022 due to cooling measures
In January, CDL was the number one bidder beside joint endeavor partner MCL Land for a 210,623 sq ft Government Land Sales (GLS) location at Jalan Tembusu. CDL as well as MCL Land provided the top bid of $768 million ($1,302 psf per plot ratio). CDL mentions the recommended development at the site will comprise four blocks of 20 to 21 floors with a total of 640 units.
CDL also finished the purchase of Central Square for $315 million in March, which will be redeveloped along with CDL’s Central Shopping mall properties right into a bigger mixed-use growth. The team also carried out the off-market procurement of a 179,007 sq ft area at 798 and 800 Upper Bukit Timah Road for $126.3 million, which will likely be redeveloped into a 400-unit housing job.
City Developments (CDL) saw a reduction in residential units offered in 1Q2022 finishing March 31 due to the real estate air-cooling steps disclosed on Dec 16 2021. In its 1Q2022 in business update released on May 24, the Singapore-listed property group disclosed a 41% y-o-y reduction in properties offered to 188 units, with a whole sales value of $477.9 million in the 1st quarter. In contrast, the group saw 319 units marketed in 1Q2021, with an entire sales price of $513.6 million.
During the 1st quarter, CDL additionally completed a number of divestments, including the sale of Tanglin Shopping Centre for $868 million with a public tender in February and the sale of Millennium Hilton Seoul for around $1.25 billion. Also recently, the collective sale of Golden Mile Complex for $700 million, wherein CDL holds 6.3% of the complete stake value and 34.8% of the strata area, was stated on May 6.
Previously this month, the group started Piccadilly Grand, its 407-unit, mixed-use development joint endeavor assignment at Northumberland Road. The venture saw solid take-up in the course of its launch weekend, with 315 units (77%) cost a regular market price of $2,150 psf. Upcoming launches in the 2nd part of the year consist of a 639-unit joint endeavor exec apartment property at Tengah Garden Walk, along with the 256-unit property factor of an integrated development at 80 Anson Road in the CBD.
Even so, CDL is hopeful about the outlook for its building advancement service for the remaining year, with a lot more residential launches planned. “While transaction quantity is momentarily impacted, the team anticipates the estate market to continue to be resilient as well as property rates to hold firm due to moderate supply as well as strong underlying basics,” its operational update sees.
