City Developments (CDL)

Analysts favour this diversified property player amid the lukewarm real estate market

SINGAPORE (Dec 24): Analysts are remaining cautious on the Singapore property and real estate sector, as the city state’s property cooling measures keep the market lukewarm.

Both DBS Group Research and RHB Group Research are keeping their “neutral” ratings on the sector, as property prices remain relatively stagnant, despite resilient sales volumes.

“While developers have been calling for some relaxation in property cooling measures, we believe it is unlikely in the near term as prices remain on an uptrend,” says RHB analyst Vijay Natarajan in a Dec 19 report.

CGS-CIMB retains 'overweight' stance on property sector as sales volume rallies

SINGAPORE (Dec 17): CGS-CIMB is keeping the Singapore property sector at “overweight” on the back of a 23% month-on-month increase in home sales recorded in November. 

In a flash note on Monday, the brokerage notes that November was an “active month” in terms of primary homes sales -  with some 1,148 units, excluding executive condominiums, changing hands over the course of the month. This translated into a sell-through rate of 1.55 times. 

Liang Court redevelopment a 'four-way win' for local real estate heavyweights, says DBS

SINGAPORE (Nov 25): As property heavyweights CapitaLand, City Developments (CDL), CDL Hospitality Trusts (CDLHT) and Ascott Residence Trust (Ascott REIT) band together to in a bid to redevelop the Liang Court site into an integrated development, market watchers opine that all four developers are poised to gain attractive returns. 

On Nov 21, it was announced that the site – comprising Liang Court mall, Novotel Singapore Clarke Quay (NCQ) hotel and serviced residence Somerset Liang Court Singapore – would be turned into an integrated development. 

Liang Court redevelopment in spotlight as CapitaLand moves to recycle capital

SINGAPORE (Nov 25): CapitaLand has been busy with transactions this month. First, it proposed on Nov 1 to divest 28 US campus properties and two business parks in Singapore to Ascendas Real Estate Investment Trust (Ascendas REIT). On Nov 20, the develop­er announced the proposed divestment of Star Vista for $296 million, 13% above the mall’s book value of $262 million.


CityDev, CapitaLand lead consortium to redevelop Liang Court site at Clarke Quay

SINGAPORE (Nov 21): The iconic Liang Court site along River Valley Road has seen better days. But now, the 35-year-old property could get a facelift in a massive deal involving City Developments (CDL), CapitaLand, Ascott Residence Trust (Ascott REIT) and CDL Hospitality Trusts (CDLHT).

Opened in 1984, the Liang Court development comprises a shopping mall once home to the Daimaru department store in Singapore, the Novotel Singapore Clarke Quay (NCQ) hotel, and Somerset Liang Court Singapore serviced residence.

REITs have had a good run, yield compression may have come to an end

(Nov 18): Yields on 10-year Singapore Government Securities have been rising, albeit gently from a low base (see Chart 1). Similarly, yields on 10-year US Treasuries are also rising, from a low of 1.4% in September to 1.945% as at Nov 11 (see Chart 2). On Oct 30, the US Federal Reserve, through a statement by the Federal Open Market Committee, announced a 25-basis-point cut in the Fed funds rate to 1.5% to 1.75%.


CapitaLand, CDL preview Sengkang Grand Residences venture

SINGAPORE (Oct 28): CapitaLand and City Developments (CDL) commenced the preview of the residential component of their joint venture, Sengkang Grand, on Oct 25. The mixed-use development, which occupies a 3.7ha site in Sengkang Central and has seamless connectivity to Buangkok MRT station, will be the first community and lifestyle hub in the North-East region.


IMF cuts growth forecast but MAS expects recovery; Kimly buys canteens

SINGAPORE (Oct 28): The International Monetary Fund has slashed its 2019 growth prediction for Singapore to 0.5%, down from its July estimate of 2%. This is IMF’s second downward revision for the city state; in its World Economic Outlook report in April, it had forecast a growth of 2.3%.

The situation is not expected to get much better next year, either. “Growth is projected to remain subdued at 1% in 2020, given Singapore’s dependence on external trade,” Jonathan Ostry, Deputy Director of the IMF’s Asia and Pacific department says at a press conference on Oct 23.


CapitaLand, CityDev to open doors to highly-anticipated Sengkang Central development on Oct 25

SINGAPORE (Oct 23): CapitaLand and City Developments (CDL) will commence the preview of the highly-anticipated Sengkang Grand Residences sales gallery on Friday, the property development giants say in a joint release.

Bookings for the integrated development, which sits on a 3.7-hectare site at Sengkang Central with seamless connectivity to Buangkok MRT Station, are scheduled to start from Nov 2.

CityDev rated 'outperform' by Credit Suisse after resumption of coverage

SINGAPORE (Oct 18): Credit Suisse is resuming coverage of City Developments with an ‘outperform” call and a target price of $11.60.

While CDL is the developer with the largest residential land bank locally, Credit Suisse believes it has successfully de-risked its residential exposure.

Although Singapore’s tepid residential outlook of late has capped CDL’s re-rating potential, there is growing evidence of a sustainable recovery and that should drive a re-rating of the stock.

Be informed of the stories that matter