City Developments: 1Q22 Singapore residential unit sales dropped 41 percent

City Developments signage on construction hoardingCity Developments signage on construction hoarding

City Developments reported Tuesday its first quarter residential unit sales in Singapore dropped 41 percent on-year to 188 units, valued at S$477.9 million, compared with sales of 319 units valued at S$513.6 million in the year-ago period.

“The property cooling measures introduced on 16 December 2021 have somewhat dampened market
sentiment as some homebuyers adopt a wait-and-see approach,” the property developer said in a filing to SGX.

“While transaction volume is temporarily affected, the group expects the property market to remain resilient and housing prices to hold firm due to moderate supply and strong underlying fundamentals. Market activities are expected to improve with new launches coming onstream,” the company said.

In Australia, launched projects continued to see healthy uptake, City Developments said, noting several projects were substantially presold.

For the investment properties, the Singapore office portfolio had committed occupancy of 93 percent as of end-March, the company said.

“With the relaxation of safe management measures since 29 March 2022, there is a gradual increase in occupiers returning to the workplace, bringing vibrancy to the office community. With the reopening and tight office supply in 2022 and 2023, the group is cautiously optimistic on the office market recovery,” City Developments said.

In the hotel operations, global occupancies recovered to 52.2 percent in the first quarter, up from 36.8 percent in the year-ago quarter, the filing said. Global revenue per available room (RevPAR) more than doubled to S$89.60 in the quarter from S$44.40 in the year-ago quarter, the filing said.