CDL reports 41% y-o-y decrease in units sold in 1Q2022 due to cooling measures
City Developments (CDL) saw a decline in household units offered in 1Q2022 closing March 31 due to the real estate air-cooling actions revealed on Dec 16 2021. In its 1Q2022 in business update published on May 24, the Singapore-listed residence group disclosed a 41% y-o-y reduction in buildings offered for sale to 188 units, with an entire sales value of $477.9 million in the 1st quarter. In contrast, the team saw 319 units marketed in 1Q2021, with an overall sales worth of $513.6 million.
Previously this month, the group launched Piccadilly Grand, its 407-unit, mixed-use innovation joint venture project at Northumberland Road. The assignment saw strong take-up during its launch weekend, with 315 units (77%) sold at a standard market price of $2,150 psf. Upcoming release in the 2nd part of the year include a 639-unit joint move exec condo project at Tengah Garden Walk, along with the 256-unit residential element of an incorporated growth at 80 Anson Road in the CBD.
In the middle of the first quarter, CDL also achieved a number of divestments, containing the sale of Tanglin Shopping center for $868 million with a public tender in February and the sale of Millennium Hilton Seoul for roughly $1.25 billion. Even more lately, the cumulative sale of Golden Mile Complex for $700 million, in which CDL holds 6.3% of the entire stake worth and 34.8% of the strata region, was revealed on May 6.
In January, CDL was the number one bidder alongside joint venture partner MCL Land for a 210,623 sq ft Government Land Sales (GLS) place at Jalan Tembusu. CDL as well as MCL Land sent the leading proposal of $768 million ($1,302 psf per plot ratio). CDL states the proposed advancement at the site will certainly make up 4 blocks of 20 to 21 storeys with a total of 640 units.
CDL additionally undertook the procurement of Central Square for $315 million in March, which will certainly be redeveloped as well as CDL’s Central Shopping mall buildings right into a bigger mixed-use improvement. The team also finished the off-market acquisition of a 179,007 sq ft site at 798 as well as 800 Upper Bukit Timah Road for $126.3 million, which will be redeveloped inside a 400-unit home task.
Nonetheless, CDL is positive regarding the outlook for its asset development enterprise for the remaining year, with a lot more property launches intended. “While deal volume is briefly affected, the team anticipates the real estate market to remain resilient and also realty fees to hold firm because of moderate supply and solid underlying basics,” its working update checks out.