CDL sees 41% y-o-y decrease in units sold in 1Q2022 due to cooling measures
City Developments (CDL) saw a decrease in residential units sold in 1Q2022 ended March 31 as a result of the property cooling measures announced on Dec 16 last year. In its 1Q2022 operational update released on May 24, the Singapore-listed property group reported a 41% y-o-y decrease in properties sold to 188 units, with a total sales value of $477.9 million in the first quarter. In comparison, the group saw 319 units sold in 1Q2021, with a total sales value of $513.6 million.
Nonetheless, CDL is optimistic about the outlook for its property development business for the rest of the year, with more residential launches planned. “While transaction volume is temporarily affected, the group expects the property market to remain resilient and housing prices to hold firm due to moderate supply and strong underlying fundamentals,” its update reads.
Earlier this month, the group launched Piccadilly Grand, its 407unit, mixed-use development at Northumberland Road. The joint-venture project saw strong take-up during its launch weekend, with 315 units (77%) sold at an average price of $2,150 psf. CDL’s upcoming launches in the second half of the year include a 639unit joint-venture executive condo at Tengah Garden Walk, as well as the 256-unit residential component of an integrated development at 80 Anson Road in the CBD.
In January, CDL was the top bidder alongside joint-venture partner MCL Land for a 210,623 sq ft Government Land Sales (GLS) site at Jalan Tembusu. CDL and MCL Land submitted the top bid of $768 million ($1,302 psf per plot ratio). CDL says the proposed development at the site will comprise four blocks of 20 to 21 storeys with a total of 640 units.
In March, CDL completed the acquisition of Central Square for $315 million, which will be redeveloped alongside CDL’s Central Mall properties into an enlarged mixed-use development. The group also completed the off-market acquisition of a 179,007 sq ft site at 798 and 800 Upper Bukit Timah Road for $126.3 million, which will be redeveloped into a 400-unit residential project.
During the first quarter, CDL also completed a number of divestments, including the sale of Tanglin Shopping Centre for $868 million through a public tender in February and the sale of Millennium Hilton Seoul for around $1.25 billion. More recently, the collective sale of Golden Mile Complex for $700 million, in which CDL holds 6.3% of the total share value and 34.8% of the strata area, was announced on May 6.