CDL launched luxury development Irwell Hill Residences in April, with about 60 per cent of the units currently taken. PHOTO: CDL
SINGAPORE (THE BUSINESS TIMES) – Property giant City Developments Limited (CDL) sees signs of improvement across its core business segments but the prolonged pandemic continues to impact operations, it said on Wednesday (May 19).
It noted that construction is under way again at all projects but the industry-wide labour shortage is hampering progress.
CDL and its joint venture associates sold 319 units with a total sales value of $513.6 million in the three months to Mar 31, a 72 per cent sales increase from the 185 homes worth $278.1 million shifted a year earlier.
The first-quarter sales were spread across various property categories, CDL added in Wednesday’s operational update.
It also noted that it launched luxury development Irwell Hill Residences near the upcoming Great World MRT station and Orchard Road in April at an average selling price of $2,700 per square foot.
Around 50 per cent of the project was sold over the launch weekend with 60 per cent now taken.
CDL and partner MCL Land were awarded a site at Northumberland Road through the first government land sales tender this year.
It lodged the top bid of $445.9 million or $1,129 per square foot per plot ratio for the plot, which will be developed into a mixed-use project with 408 apartments across an estimated 23 storeys and commercial retail space on the ground floor.
CDL’s update noted as well that all 861 units in its residential project The Tapestry in Tampines Avenue 10, which obtained its temporary occupation permit in February, have been sold.
The committed occupancy of the group’s Singapore office portfolio came in at 91.4 per cent, above the island-wide occupancy of 88.1 per cent, with positive rental reversion as average expiring rents are still below market levels.
It said it has focused on engaging tenants to achieve renewals ahead of lease expirations as companies remain cautious about expanding and relocating in view of restricted capacity at workplaces.
The committed occupancy for retail space was 92.1 per cent as at Mar 31, above the island-wide occupancy of 91.5 per cent.
Gross turnover at CDL malls rose 5 per cent in the first quarter over the same three months last year but footfall was still lower than pre-Covid-19 levels.
Global occupancy in its hotels dropped from 52.5 per cent inn the first quarter last year to 36.8 per cent while global RevPAR (revenue per available room) decreased 51.7 per cent, from $92.40 to $44.60.
Restrictions on international travel and spikes in Covid-19 cases have been dampening recovery, but these are mitigated in Singapore by the government quarantine business and domestic staycations.
CDL shares closed down 1.86 per cent at $7.39 on Wednesday.
“Source: [CDL reports operational improvements for Q1 but remains wary of Covid-19 impact] © Singapore Press Holdings Limited. Permission required for reproduction”
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