[SINGAPORE] Property developer City Developments Limited (CDL) recorded sales revenue of $1.9 billion from its property development segment in Singapore for the first quarter of 2025. This performance was largely fueled by the successful launch of The Orie, a joint venture condominium project located in Toa Payoh.
In an operational update released on May 20 for the quarter ended March 31, CDL reported an 85 per cent year-on-year increase in sales volume and a 155 per cent rise in sales value. The group highlighted continued strong performance across its other developments, including the Lumina Grand executive condominium in Bukit Batok and The Myst along Upper Bukit Timah Road.
CDL also emphasized its ongoing commitment to sustainable development, incorporating green building technologies across its portfolio. The group said this approach not only appeals to eco-conscious buyers but also aligns with Singapore's broader environmental objectives.
International Expansion and Strategic Growth
In the United Kingdom, CDL secured planning approval for a £1.1 billion (S$1.9 billion) residential-led mixed-use development in south-west London. The project, designed to include residential units, commercial spaces, and community amenities, marks a key milestone in CDL’s UK expansion strategy. It is expected to support the group’s long-term growth by tapping into the rising demand for integrated urban developments.
Meanwhile in China, CDL’s wholly owned subsidiary reported total sales of 179.5 million yuan (S$33.2 million) from the sale of 86 residential, office, and retail units. Despite headwinds in the Chinese office market, the group remains committed to optimizing its portfolio through partnerships with government-supported sectors, aiming to strengthen its resilience amid evolving market conditions.
Strong Singapore Office Performance, Mixed Hotel Results
CDL’s Singapore office portfolio achieved a committed occupancy rate of 97.2 per cent in Q1, underpinned by strong leasing activity at South Beach, City House, and King’s Centre. All three properties recorded positive rental reversions. The group noted that most office leases due to expire this year have been renewed, and negotiations for 2026 expiries are underway.
In contrast, its office assets in China posted a committed occupancy rate of 52.7 per cent, reflecting persistent challenges in that market. CDL said it continues to explore ways to enhance the value of its Chinese portfolio, including potential alignments with government-supported sectors.
On the hospitality front, Singapore hotels under CDL experienced a 16.7 per cent year-on-year drop in revenue per available room (RevPar) to $153.70. The decline was attributed to a high base from major events last year, such as the Taylor Swift concert in March 2024, as well as changes in travel patterns amid global economic uncertainty. CDL is implementing targeted marketing and service enhancements to strengthen hotel performance.
Elsewhere in Asia, RevPar rose 7.9 per cent to $114, supported by strong results in Taipei and improved occupancy in markets like Manila and Jakarta. Hotels in Australasia and Europe also saw healthy growth, with RevPar increasing by 10.9 per cent and 7.4 per cent respectively.
Retail and Financial Resilience
CDL’s Singapore retail portfolio maintained a committed occupancy rate of 96.2 per cent in the first quarter, driven by strong tenant retention and robust asset quality.
As of March 31, the group reported a healthy debt maturity profile, with a net gearing ratio of 72 per cent and interest cover at 1.4 times. CDL said it holds “strong” cash reserves of $2 billion and has access to a “robust” liquidity position totaling $3.8 billion, including undrawn committed bank facilities.
Despite macroeconomic headwinds such as inflationary pressures and global trade tensions, CDL remains cautiously optimistic about the outlook for the property sector. The group pointed to its diversified portfolio across geographies and asset classes as a key strength. Shares of CDL closed at $4.73 on May 20, down $0.02 or 0.4 per cent prior to the announcement.
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