PROPERTY developer City Developments Limited (CDL) saw sales slow in the first quarter ended Mar 31 due to the absence of a new launch during the period.

The group and its joint venture associates sold 88 units with a total sales value of S$213.2 million in Q1, compared with 188 units at S$477.9 million in the same period last year, CDL said in an operational update on Friday (May 19).

However, despite the challenging global outlook, CDL said it is confident of weathering through the uncertainties and maintains a lookout for suitable investment opportunities.

Property cooling measures introduced in April also “serve as a continued reminder that the group should not be overly reliant on a specific country or asset class”.

Still, the company noted that it had to reschedule the preview for its 246-unit freehold project Newport Residences, originally planned for Apr 29, since the market would “need time to absorb the measures”.

“The group will monitor the market conditions closely and launch the project at the appropriate time,” it added.

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Less than three weeks prior, CDL launched its 638-unit joint-venture (JV) residential development Tembusu Grand, of which about 56 per cent is being sold at an average selling price of S$2,465 per square foot. The company noted that around 90 per cent of buyers are Singaporeans; 8 per cent permanent residents (PR) and 2 per cent foreigners.

In the near term, CDL expects cooling measures to affect projects with a higher proportion of foreign demand, “typically high-end luxury properties in prime districts”.

“The group expects minimal impact on the mass and mid-tier segments where most buyers are locals and PRs, as evidenced by the three recent launches that took place after the cooling measures were announced,” CDL said.

In the second half of this year, it is planning to launch a 408-unit project The Myst along Upper Bukit Timah Road.

Meanwhile, two of its fully sold projects obtained their Temporary Occupation Permits in January and April. These are the 820-unit JV executive condominium (EC) Piermont Grand and 188-unit Haus on Handy respectively.

CDL said the group will recognise the revenue and profit from Piermont Grant EC in their entirety in Q1, in line with prevailing accounting standards.

Among its other projects, Piccadilly Grand, CanningHill Piers, Irwell Hill Residences and Amber Park are above 90 per cent sold.

In terms of its investment properties, CDL said its office portfolio reported a committed occupancy of 94.3 per cent as at Mar 31, higher than the islandwide occupancy of 88.8 per cent.

Its retail portfolio has a committed occupancy of 97.6 per cent, higher than the islandwide occupancy of 92.4 per cent.

As for its hotel operations, CDL reported a revenue per available room (RevPAR) growth of 65.4 per cent to S$131.20 for Q1, up from S$79.30 in the same quarter last year. This is fuelled by the strong recovery from Asia, Australia and New Zealand, it said.

Singapore hotels recorded an 88.9 per cent year-on-year increase in RevPAR, mainly due to higher average room rates. Other hotels in Asia clocked a 150.2 per cent year-on-year growth, driven by the strong performance in Taipei and Beijing.

CDL’s net gearing ratio as at Mar 31 stands at 55 per cent, following the acquisition of St Katharine Docks in central London the same month.

CDL said its geographically diversified portfolio across its various business segments enables it to maintain stability while embracing growth. It added that it will stay nimble, forward-looking and adaptive to changing market conditions.

CDL shares fell S$0.02, or 0.29 per cent, to close at S$6.89 ahead of the update.