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SG Singapore property faces strong headwinds: CDL

Property Here - Wednesday, August 07, 2013

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Property firm City Developments Limited (CDL) expects both sales and prices of Singapore homes to slow down in the remaining half of the year.

“With the latest round of property cooling measures which has been the most effective to date, the group expects stronger headwinds in the second half of the year. Transaction volume for private residential sales is beginning to be more measured and prices in general are expected to be moderated for the mass market segment, due to the tightening of bank borrowings,” said CDL’s Executive Chairman Kwek Leng Beng.

Meanwhile, the developer reported strong numbers, achieving a 48 percent profit increase to S$203.8 million for Q2 2013, while first-half profit was up 16 percent to S$341.5 million. Growth was mainly supported by the group’s rental properties, followed by property development.

Residential developments launched by CDL saw brisk sales totalling 2,114 units or around S$2.25 billion during the first half. The 912-unit D’Nest is already 91 percent sold and the 868-unit Bartley Ridge (75 percent), while the 616-unit Jewel @ Buangkok has sold 86 percent of its 350 units launched.

At the same time, e-applications for the 380-unit Lush Acres EC was oversubscribed by over three times.

 

Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@allproperty.com.sg