CDL raises red flags on private housing market
Group posts 10.4% fall in Q3 earnings; revenue dips 1.2% to $822.7m
CITY Developments Ltd (CDL), which posted a 10.4 per cent year-on-year drop in third-quarter net earnings to $120.6 million yesterday, has raised some red flags on the Singapore private residential property market.
CDL pointed out that while developers are starting to cut their prices in existing and new projects, willing to take lower profit margins, land prices on the other hand are continuing to escalate.
At state tenders, non-traditional developers, especially foreign construction companies, are entering the arena, bidding aggressively to secure land, while sacrificing their profit margins on construction.
"As a result, many developers have formed joint ventures to bid for land and noticeably, successful bid prices between sites can vary widely, reflective of the lack of land stock in trade. This is a very potent trend that may affect the industry in the medium to long run and the group is hopeful that the…
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Tesla cuts US prices by US$2,000 as sales slow, inventories swell
Volkswagen workers vote decisively to unionise in Tennessee
Sony deal for Paramount would draw added regulatory scrutiny
Bitcoin 'halving' has taken place: CoinGecko
Lululemon to shutter Washington distribution center, lay off 128 employees
Wall Street bonus rules return to regulatory agenda in third try