CDL’s Singapore property sales halve in Q3 to S$313 million amid fewer new launches

[SINGAPORE] City Developments Ltd (CDL) and its joint venture associates recorded Singapore sales of S$313.2 million in the third quarter, a 48.7 per cent slide from S$611.1 million a year ago, the group said on Monday (Nov 17).

Some 88 units were sold in the three months ended Sep 30, versus 321 units in Q3 2024, CDL said in an operational update.

Sales were primarily from existing projects as there were no new launches during this quarter, said CDL. It explained that last year’s Q3 sales were boosted by the launch of the 276-unit freehold condo Kassia in July, which sold 144 units during its launch weekend.

Separately, CDL added that it is now in advanced stages of discussion and negotiation with shortlisted parties over the sale of Quayside Isle @ Sentosa Cove, after it put the mall up on the market at S$111 million in September and closed its expression of interest exercise last month.

This trophy waterfront asset is the only retail property within the Sentosa Cove enclave and has attracted encouraging market interest, said CDL.

Noting that capital recycling remains a key strategic focus for CDL, the property conglomerate said it completed on Nov 7 its divestment of ground-floor retail podium Piccadilly Galleria – which was put on sale in September – for S$65.46 million.

The Business Times earlier reported in May that the 15-unit retail podium was up for sale at S$67.5 million, down 10 per cent from its initial S$75 million price tag in October 2024.

Property development

For the first nine months of the year, total sales value was up 38.9 per cent at S$2.5 billion (or 990 units), from S$1.8 billion (or 905 units) in the previous corresponding period.

Strong sales were driven by the 777-unit The Orie joint-venture project at Toa Payoh, launched in January, with 94 per cent of its total units sold to date.

SEE ALSO

CDL puts Quayside Isle @ Sentosa Cove mall up for sale at S$111 million

CDL, MCL Land marketing Piccadilly Galleria retail podium for sale at lower price of S$67.5m

CDL noted in its update that buying interest stayed strong this year.

“With interest rates moderating, residential sales have picked up after the seasonal lull in September during the Hungry Ghost Festival,” it said. “October saw a flurry of new launches, particularly well-located projects, which saw strong demand and robust sales.”

On the outlook for its property development sector, CDL noted that its core operations remain resilient and that it has built a strong pipeline of well-located projects in Singapore and China via its ongoing land replenishment efforts.

Hotel operations

On its hotel operations front, the group recorded a 0.3 per cent drop in global revenue per available room to S$165.80 in the first nine months of this year, from S$166.30 in the year-ago period.

This was attributed to weaker performance in Asia.

Its Singapore hotels posted a 10.6 per cent year-on-year decline in revenue per available room to S$158.50 from S$177.20, due to a lower average room rate and occupancy. The decline was attributed to a high-base effect from last year’s events.

The rest of Asia registered a 3.6 per cent year-on-year decrease in revenue per available room, driven mainly by the weaker performance of Grand Millennium Beijing and Grand Millennium Kuala Lumpur.

The inclusion of the newly opened M Social Resort Penang, which is still in the stabilisation phase, also affected the region’s performance, added CDL.

Asia’s weaker showing was offset by a 10.7 per cent growth in revenue per available room across the rest of the UK and Europe, excluding London, driven by the acquisition of the Hilton Paris Opera hotel in May 2024.

CDL concluded that the group’s hotel performance across its key markets remains stable, with major events in the last quarter of this year anticipated to support continued domestic inflows.

The counter ended Monday S$0.04 or 0.5 per cent lower at S$7.31, before the announcement.