CDL reports 41% y-o-y decrease in units sold in 1Q2022 due to cooling measures
City Developments (CDL) saw a loss in residential units closed in 1Q2022 closing March 31 due to the building air-cooling steps released on Dec 16 last year. In its 1Q2022 operational update published on May 24, the Singapore-listed building team disclosed a 41% y-o-y decline in buildings offered for sale to 188 units, with a complete sales value of $477.9 million in the first quarter. In contrast, the group saw 319 units sold in 1Q2021, with an overall sales price of $513.6 million.
Previously this month, the team introduced Piccadilly Grand, its 407-unit, mixed-use development joint venture project at Northumberland Street. The project saw strong take-up in the course of its launch weekend, with 315 units (77%) sold at an usual market price of $2,150 psf. Upcoming launches in the second half of the year include a 639-unit joint endeavor executive condo venture at Tengah Garden Walk, in addition to the 256-unit property factor of a combined growth at 80 Anson Road in the CBD.
Throughout the initial quarter, CDL also completed a number of divestments, including the sale of Tanglin Shopping center for $868 million through a public tender in February and also the sale of Millennium Hilton Seoul for about $1.25 billion. More recently, the cumulative sale of Golden Mile Complex for $700 million, in which CDL holds 6.3% of the overall reveal worth as well as 34.8% of the strata location, was stated on May 6.
CDL also executed the purchase of Central Square for $315 million in March, which will be redeveloped in addition to CDL’s Central Shopping mall properties right into an enlarged mixed-use growth. The group also executed the off-market procurement of a 179,007 sq ft site at 798 as well as 800 Upper Bukit Timah Road for $126.3 million, which will definitely be redeveloped right into a 400-unit non commercial job.
Even so, CDL is positive regarding the forecast for its home growth business for the rest of the year, with a lot more residential launches intended. “While deal volume is temporarily influenced, the team anticipates the asset market to remain resistant as well as housing rates to hold firm as a result of modest supply and also strong hidden principles,” its functional update sees.
In January, CDL was the best bidder along with joint venture companion MCL Land for a 210,623 sq ft Government Land Sales (GLS) spot at Jalan Tembusu. CDL and MCL Land handed in the foremost quote of $768 million ($1,302 psf per plot ratio). CDL states the offered advancement at the spot will certainly consist of 4 blocks of 20 to 21 storeys with a sum of 640 units.