Singapore-listed property giant City Developments Limited (CDL) reported a strong performance for 2Q2018, with revenue up 59.2% y-o-y to $1.36 billion 47.6% to $2.42 billion for 1H2018. Net profit in 2Q2018 was up 48.9% to $235 million and for 1H2018, it was up 37.9% to $368.9 million.
Strong sales in 2Q2018 was led by three projects – New Futura and Gramercy Park in Singapore, as well as Hong Leong City Center (HLCC) in Suzhou, China. Profits were also recognized for CDL’s joint venture (JV) development Park Court Aoyama The Tower in Tokyo, Japan.
Hong Leong City Center (HLCC) in Suzhou, China, was one of three projects that contributed to strong sales in 2Q2018 (Credit: CDL)
The Criterion Executive Condominium (EC) in Yishun is now fully sold. The EC project has obtained its Temporary Occupation Permit (TOP) in 1Q2018, and boosted revenue for 1H2018. The 174-unit Gramercy Park at Grange Road was Launched in March 2016, and is fully sold today.
According to CDL, its launched projects in Singapore performed well in 1H2018 before the new cooling measures were announced in July. The group sold 651 units including ECs, with total sales in 1H2018 ringing in at $1.29 billion. This compares with 691 units sold for a total of $1.15 billion in 1H2017.
At the 124-unit New Futura at Leonie Hill Road, over 74% of the units, or 92 units, including the two penthouses, have been sold to date. They achieved an average selling price (ASP) of about $3,500 psf.
Since the launch of Phase 1 of The Tapestry, CDL’s 861-unit condominium at Tampines Avenue 10, in March this year, 488 (89%) of the 550 units released have been sold to date with an ASP of about $1,350 psf.
At The Tapestry, CDL’s 861-unit condominium at Tampines Avenue 10, 488 (89%) of the 550 units released have been sold at an average price of $1,350 psf (Credit: CDL)
CDL’s Whistler Grand in West Coast Vale is scheduled for launch in 4Q2018 as planned. It will comprise two 36-storey towers with 716 apartments and two shops.
In China, the Group and its JV associates sold 170 units and villas with a total sales value of RMB 691.06 million (about S$138 million) in 1H2018.
Teddington Riverside, the Group’s 240-unit development in the Borough of Richmond in the UK, is expected to be launched in September.
Ahead of the opening of the HLCC mall in Suzhou in June, CDL achieved a 90% pre-lease commitment for its 56,000 sqm (about 602,779 sq ft) of retail space.
Kwek Leng Beng, CDL’s executive chairman, notes that the “market dynamics changed after the unexpectedly harsh property cooling measures were announced in July.” Kwek expects sales to “moderate” though prices for quality projects in good locations with limited supply and pent-up demand will be sustained.
Adds Sherman Kwek, CDL’s group CEO, “For the Singapore residential market, CDL has a strategically acquired land bank that caters to all segments of the market such as EC, mass, mid and high-end.”