CDL sees signs of operational improvements in Q1 2021

Cheryl Chiew20 May 2021

In the first quarter of 2021, CDL and its joint venture associates sold 319 units, with a total sales value of S$513.6 million, up 72% from one year ago. Source: CDL

CITY Developments Limited (CDL) on Wednesday (19 May) said it sees signs of improvement across its core business segments but remains concerned about the adverse impact of the COVID-19 pandemic on its operations.

In a business update, CDL revealed that the group and its joint venture (JV) associates shifted 319 units with a total sales value of $513.6 million during the first quarter of 2021, up 72% over the same period last year.

In Q1 2020, 185 units were sold for a total sales value of $278.1 million.

CDL noted that the sales for Q1 2021 were “well spread out among the various property categories ranging from executive condominiums to luxury apartments”.

In February, its 861-unit residential project, The Tapestry, obtained a Temporary Occupation Permit (TOP). Located at Tampines Avenue 10, the development is already fully sold.

CDL also shared that it has launched Irwell Hill Residences in District 9 at an average selling price of $2,700 per sq ft (psf) in April. The 540-unit luxury development registered robust sales during its launch weekend, with more than 50% of the project sold. To date, 60% of the units have been sold.

In May, a site at Northumberland Road has been awarded to CDL and its JV partner MCL Land via the first Government Land Sales (GLS) tender this year, after they submitted the highest bid of $445.9 million.

“It will be developed into a mixed-use project with 408 residential apartments of up to 23 storeys and commercial retail space on the ground floor,” said CDL.

In Australia, domestic demand fuelled the increased sales across the launched projects of the group.

On its investment properties, CDL said the committed occupancy at its Singapore office portfolio remained resilient at 91.4% as of 31 March 2021, up from the 88.1% island-wide occupancy.

“The portfolio is supported by medium- to long-term leases with a diversified pool of mainly blue-chip multi-national corporations,” it added.

Committed occupancy for its retail properties also remained strong at 92.1% as of 31 March 2021, up from the 91.5% island-wide occupancy.

And while footfall within the malls was still lower than pre-pandemic levels, gross turnover sales at the group’s malls continued to be strong, increasing 5% year-on-year in Q1 2021.

In Thailand, a portion of the group’s major retail mall, Jungceylon, has been closed to reduce operational cost. “The group will prepare for the reopening of the mall once the situation improves,” said CDL.

Meanwhile, the group witnessed a hike in office leasing enquiries in China, while its residential rental apartment portfolio in Japan showed stable occupancy and healthy leasing demand.

For its hotel portfolio, global occupancy declined to 36.8% in Q1 2021 from 52.5% in Q1 2020, while global revenue per available room (RevPAR) dropped 51.7% to $44.6 from $92.4 previously.

CDL noted that restriction on international travel and the resurgence of COVID-19 cases have been affecting the sector’s recovery. However, these are mitigated in Singapore by domestic staycations and the government quarantine business.

Looking ahead, CDL said this year’s outlook “remains unpredictable as the COVID-19 situation evolves”.

Singapore, for instance, has unveiled “heightened alert measures to minimise virus transmission in the community”.

“Having enhanced its digitalisation initiatives from the onset of the COVID-19 pandemic last year, the Group is well-prepared to navigate the latest restrictions with agility and manage the ongoing and inevitable business disruptions across its operations,” said CDL.

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Cheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email: 


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