City Developments Limited (CDL) C09 and its joint venture (JV) associates have reported the sale of 183 units at a total sales value of $325 million for its 3QFY2023 ended Sept 30.
This was up over the 95 units at a total sales value of $281 million recorded for the same period last year with sales largely driven by the July launch of The Myst along Upper Bukit Timah Road.
For the first nine months ended Sept 30, CDL and its JV associates have sold 691 units with a total sales value of $1.4 billion compared to 802 units with a total sales value of $1.9 billion in the first three quarters of FY2022.
According to CDL, private residential property prices showed resilience despite macroeconomic concerns, achieving moderate growth in 3QFY2023.
With improvements in market sentiment and a healthy response to recent launches, CDL plans to launch Newport Residences in 1HFY2024.
The group has continued to progressively sell down its existing inventory, with four of its projects over 90% sold, and has secured a 155,351 sq ft residential Government Land Sales (GLS) site at Champions Way for $294.9 million in September to replenish its development pipeline.
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CDL expects private home sales to be measured as the market takes a “temporary breather” to digest the slew of new launches in July and the approaching year-end holiday season.
With market activities expected to resume in 2024, the group is preparing to launch its 512-unit Lumina Grand Executive Condominium (EC) project at Bukit Batok West Avenue 5 in 1QFY2024. The EC is close to the upcoming Tengah New Town and Jurong Lake District and in proximity to three MRT stations along the Jurong Region Line and North-South Line.
Given the attractive location and limited stock of EC units in the market, CDL says it expects a “good response” to the upcoming launch of Lumina Grand EC.
As at Sept 30, the group’s net gearing ratio, after factoring in fair value on investment properties, stands at 58% following the completion of various acquisitions in 2023, including St Katharine Docks, two hotels and several private rented sector (PRS) assets. CDL’s interest cover ratio stands at 3.2x, with a healthy debt expiry profile.
CDL’s cash reserves amount to $1.9 billion and maintains a stable liquidity position comprising cash and available undrawn committed bank facilities totalling $2.9 billion.
Looking ahead, the group says it continues to focus on its Growth, Enhancement and Transformation (GET) strategy as it embraces capital recycling, effectively growing its global portfolio via new acquisitions, extracting greater value from existing assets and divesting non-core properties.
CDL will continue to ensure a sustained development pipeline in Singapore across the full spectrum of the residential market from ECs to the luxury segment, with a diversified and stable launch pipeline giving the group greater flexibility, it says.
Shares in CDL closed 6 cents or 0.97% up at $6.28 on Nov 23.
