CDL reports 41% y-o-y decrease in units sold in 1Q2022 due to cooling measures
City Developments (CDL) saw a reduction in property units sold in 1Q2022 finishing March 31 due to the real estate cooling steps revealed on Dec 16 2021. In its 1Q2022 working update released on May 24, the Singapore-listed estate team showed a 41% y-o-y decline in buildings marketed to 188 units, with an entire sales price of $477.9 million in the initial quarter. In contrast, the group saw 319 units sold in 1Q2021, with an entire sales value of $513.6 million.
In the course of the initial quarter, CDL even did a number of divestments, consisting of the sale of Tanglin Mall for $868 million through a public tender in February and also the sale of Millennium Hilton Seoul for approximately $1.25 billion. Even more lately, the collective sale of Golden Mile Complex for $700 million, in which CDL holds 6.3% of the whole reveal value and 34.8% of the strata part, was declared on May 6.
Previously this month, the group launched Piccadilly Grand, its 407-unit, mixed-use development joint endeavor property at Northumberland Road. The project saw solid take-up during its launch weekend, with 315 units (77%) sold at a standard asking price of $2,150 psf. Upcoming launches in the 2nd part of the year involve a 639-unit joint endeavor executive condo property at Tengah Garden Walk, in addition to the 256-unit domestic factor of an integrated progression at 80 Anson Road in the CBD.
CDL additionally finished the purchase of Central Square for $315 million in March, which will certainly be redeveloped alongside CDL’s Central Shopping center assets into an enlarged mixed-use improvement. The group likewise carried out the off-market acquisition of a 179,007 sq ft area at 798 and also 800 Upper Bukit Timah Road for $126.3 million, which will likely be redeveloped inside a 400-unit housing job.
In January, CDL was the leading prospective buyer together with joint venture partner MCL Land for a 210,623 sq ft Government Land Sales (GLS) site at Jalan Tembusu. CDL and also MCL Land filed the foremost proposal of $768 million ($1,302 psf per plot ratio). CDL reveals the submitted development at the site will include 4 blocks of 20 to 21 storeys with a total amount of 640 units.
Nonetheless, CDL is hopeful regarding the overview for its asset development enterprise for the whole year, with a lot more property launches planned. “While deal quantity is temporarily affected, the group projects the property market to continue to be resilient and also realty rates to hold firm due to modest supply as well as solid hidden basics,” its operational update reads.