CDL reports 41% y-o-y decrease in units sold in 1Q2022 due to cooling measures
In January, CDL was the leading prospective buyer along with joint venture partner MCL Land for a 210,623 sq ft Government Land Sales (GLS) location at Jalan Tembusu. CDL as well as MCL Land sent the major bid of $768 million ($1,302 psf per plot ratio). CDL specifies the submitted advancement at the spot will include four blocks of 20 to 21 storeys with a total of 640 units.
Previously this month, the group released Piccadilly Grand, its 407-unit, mixed-use property development joint endeavor assignment at Northumberland Street. The assignment saw strong take-up throughout its launch weekend, with 315 units (77%) cost an average market price of $2,150 psf. Upcoming release in the 2nd part of the year involve a 639-unit joint move exec condominium project at Tengah Garden Walk, as well as the 256-unit property part of an incorporated improvement at 80 Anson Road in the CBD.
City Developments (CDL) saw a loss in household units marketed in 1Q2022 closing March 31 due to the building cooling measures disclosed on Dec 16 last year. In its 1Q2022 in business update launched on May 24, the Singapore-listed building team declared a 41% y-o-y decline in real estates offered to 188 units, with a whole sales worth of $477.9 million in the 1st quarter. In comparison, the team saw 319 units sold in 1Q2021, with a total sales price of $513.6 million.
CDL also completed the purchase of Central Square for $315 million in March, which will be redeveloped along with CDL’s Central Mall assets right into a bigger mixed-use development. The group likewise executed the off-market procurement of a 179,007 sq ft site at 798 and 800 Upper Bukit Timah Road for $126.3 million, which will definitely be redeveloped within a 400-unit residential task.
During the initial quarter, CDL even completed a number of divestments, involving the sale of Tanglin Shopping center for $868 million via a public tender in February and also the sale of Millennium Hilton Seoul for roughly $1.25 billion. More just recently, the collective sale of Golden Mile Complex for $700 million, wherein CDL holds 6.3% of the total reveal worth as well as 34.8% of the strata part, was declared on May 6.
Nevertheless, CDL is optimistic regarding the overview for its commercial property advancement enterprise for the remainder of the year, with more property launches prepared. “While deal quantity is briefly impacted, the team expects the building market to continue to be resistant and also realty costs to hold firm as a result of modest supply and strong hidden fundamentals,” its functional update checks out.