Singapore Property | City Developments Limited (CDL) disclosed that it is to benefit from the property upcycle. This is after years of unresponsive market conditions and worldwide economic circumstances.
In a results briefing held last Friday, August 11, CDL disclosed that it has sold 691 units (sales of $1.15 billion) in Singapore during the 1st half of 2017. This is triple the figure of the previous year. The momentum is expected to remain for luxury projects.
Take Gramercy Park, a luxury freehold condominium located at Grange Road. 117 out of 174 units or 67% have already been sold at prices from $2,650 per square foot to $2,880 per square foot. These units are a mix of two 5BR penthouses which were purchased for $17 million each.
For the 2nd half of 2017, CDL is posed to launch New Futura, another luxury condominium around the Orchard Road vicinity. The Temporary Occupation Permit for this 124-unit freehold development, is expected around the 3rd quarter of 2017. It will offer 2BR, 3BR and 4BR units.
CDL’s Other Projects
The launch of the 190-unit luxury South Beach Residences has yet to be scheduled as timing for maximum returns is crucial. This takes into consideration both sales and rental options.
In the first half of 2018, CDL is poised to launch a 99-year leasehold condominium along Tampines Avenue 10. It will feature seven 15-floor buildings with a total of 861 units.
Kwek Leng Beng, Executive Chairman for CDL is of the belief that the Singaporean residential market is already gaining momentum, thanks to increased activity and key stabilizing factors.
This is good not only for its new projects but also for its mature assets. Kwek sees potential collective en-bloc prospects. They are also gearing up for massive land bank replenishment.
Kwek is of the hopes that the government reviews the current Qualifying Certificate (QC). Its austere measures require developers like him to build and sell all units within a short period of five years from being granted the site. The restrictive measures were put in place to avoid rising land costs and property prices that are not reflective of economic conditions.
For the first half of 2017, CDL disclosed a profit of $195.3 million from a hefty sales figure of $1.6 billion.