The property developer faced slower sales in Q3, but strong demand following recent project launches boosts its outlook.
CITY Developments Limited (CDL) reported a slowdown in sales for the third quarter ending September 30, primarily due to a low inventory of unsold units and no new launches during the period. The company and its joint-venture (JV) associates sold a total of 95 units worth S$281 million in Q3, as per its operational results released on November 30.
For the first nine months of the year, CDL and its JV associates sold 802 units valued at S$1.9 billion, a decrease from the 1,382 units worth S$2.5 billion sold in the same period in 2023. However, the company experienced a rebound in sales in November, with total units sold reaching 1,417 and a total value of S$2.8 billion, largely driven by the successful launch of the Copen Grand executive condominium (EC) project in October.
The Copen Grand EC saw an “overwhelming” response, with an average launch price of S$1,300 per square foot. This surge in sales highlights strong demand in the market despite a quieter Q3.
CDL’s investment properties in Singapore performed well, with its office portfolio maintaining a robust 94.3% committed occupancy rate, and its retail portfolio also strong at 95.3% occupancy. The hotel segment saw notable growth, with a significant 88.9% increase in global revenue per available room (RevPAR), reaching S$161.90 for Q3 compared to S$85.70 in the same period last year, benefiting from the easing of travel restrictions and increased demand.
However, CDL announced that it is putting a temporary hold on its initial public offering (IPO) plans for its UK commercial properties until the market stabilises.
Looking ahead, CDL acknowledged that rising interest rates, inflation, and Singapore’s property cooling measures may cause potential buyers to adopt a more cautious approach. Despite this, the company remains optimistic about the resilience of the property market, supported by limited available stock and a recovering economy. CDL also pointed to Singapore’s political stability and its status as a financial hub as factors maintaining strong interest from both local buyers and international investors, including high-net-worth individuals.
