CDL reports 1HFY2023 earnings of $66.5 million, down 94.1% year on year due to the absence of significant disposal gains

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Lumina Grand EC by CDL Zenith

City Developments Limited (CDL) C09 0.00%has reported earnings of $66.5 million for the first half of 2023 that ending June 30. 94.1% lower than the results of $1.12 billion reported in the same period in the prior year, due to the lack of significant divestment gains for the year ending June 30,.

The $1.12 billion figure was also revised since the planned listing of REITs of CDL’s two commercial properties in the UK didn’t happen. The group has reclassified properties that were put up for sale as well as the liabilities directly linked to the assets to its specific liabilities and assets.

Earnings Per Share (EPS) during the time was 6.6 cents on adjusted basis.

The company’s net profit in 1HFY2023 was affected by a higher interest costs as well as an impairment of $34 million of its two investment properties located in London -the 100 Old Broad Street and Aldgate House. The valuations were computer-generated and were basing them on the higher capitalisation rates.

Lumina Grand EC by CDL Zenith recently acquired the Bukit Batok West Avenue 5 property block for the building of Lumina Grand, an Executive Condominium (EC).

The company’s net profit in 1HFY2023 was affected by a higher interest costs as well as an impairment of $34 million for the two investments properties situated in London -The Aldgate House and 125 Old Broad Street and Aldgate House.

“UK Investment properties are experiencing rough times,” says Sherman Kwek who is the Group CEO of CDL. “We had to endure a 30-50 basis-point cap rate growth. Rents and occupancy are up. However, with the cap rate increase and a decline in value. Hopefully, this will be temporary and we’re seeing brighter opportunities in the near future.”

Kwek says: “All companies and REITs have been impacted by the increase in costs of financing. We have tried to secure our financing costs net, they’ve risen by four times over the course of last year. However, we’re seeing things settling.”

At present, CDL may continue to have higher costs for financing. With only 42% of its debt with fixed interest rates, CDL’s financing cost in 1H2023 nearly increased by more than $220.5 million, up from $199 millions in the 1H2022. This is due to the fact that its cost of borrowing in 1H2023 was about 4.1% compared to just 2.4% for FY2022.

The Group’s CFO Yiong Yim Ming estimates that the cost of debt for the entire FY2023 period could increase to 4.25%. “We thought the figure of 4% would be the top limit for 2023,”” Yiong says. “Now we’re estimating 4.25%.”

As per Yiong, CDL has also offered the possibility of a higher interest rate on land auctions this year. CDL’s gearing goal is an interval: “For gearing, our maximum is 65% and we’re currently at the 57%” Yiong adds.

Revenues for the six months however, jumped to 83.6% y-o-y to $2.70 billion, driven primarily by the company’s property growth segment.

The revenue for that property development segment increased by183.2% y-o-y and was supported by the contribution of CDL’s completely sold Piermont Grand executive condo (EC). Piermont Grand had obtained its temporary occupation permit (TOP) in the 1HFY2023, allowing its profit and revenue to be recognized at the time of conclusion under the accounting rules in place for ECs.

The year is 2009 and CDL is launching two new residential developments, including The 638-unit Tembusu Grand located at Jalan Tembusu, off Tanjong Katong Road (Rest of Central Region or RCR) in April, and four08 units of The Myst at Upper Bukit Timah (Outside Central Region) in July. Tembusu Grand is 58% sold at an average of $2,464 per sq ft, while The Myst is 32% sold for an average of $2,057 psf basing on caveats filed on the 10th of August.

The 2022 September election saw CDL took over the executive condo (EC) site at Bukit Batok West Avenu 5 in a an offer of $336.068 million, or $626 per square foot in plots. The developer plans to start the EC project by 1H2024.

CDL is also planning to develop a mixed-use project in the 2H2024 timeframe. It will be a renovation of Central Square and the old Central Mall and Central Square under URA’s Strategic Development Incentive Scheme.

The public preview for Newport Residences, which is a residential development of 246 units in a mixed-use project situated on Anson Road in Tanjong Pagar is yet to be decided in accordance with CDL. Newport Residences is a redevelopment of the freehold FujiXerox Towers located in the Core Central Region. The preview of the project was thwarted because of Government’s property cooling measures of April 27. The measures saw the additional stamp duty for buyers (ABSD) to foreign nationals rise in 60% as opposed to 30% prior to that.

Revenue from the hotels operations division also grew in 12.4% y-o-y as global revenue per room (RevPAR) increased by 42.7% y-o-y to $151.50 in the wake of continuing strong growth for international tourism. Singapore’s RevPAR increased by 51.5% while the group’s properties in Asia were able to record improvement of 88.3% y-o-y increase in RevPAR. The hotel properties of the group across Asia, Europe and the US have seen RevPAR surpass the levels they had prior to Covid-19.

In the 1HFY2023, CDL’s pretax profit was $179.5 million, which was down from $1.6 billion recorded in the year prior, which was enhanced by significant divestment gains. In the absence of divestment gains or loss of impairment, the business would have benefited from an 48.1% increase in pre-tax profits for the 1HFY2023 year in a comparable manner.

In the course of the year, CDL and its joint venture (JV) associates sold 508 residential units in Singapore with a total sale worth $1.1 billion, a decrease by 712 units during the 1HFY2022 year, with the total worth at $1.6 billion.

The group’s projects that were launched in Australia are seeing an increase in participation.

The majority of the inventory in China is being sold off as well as CDL continues to clean the remaining units within Shanghai, Suzhou, Chongqing and Shenzhen.

For its UK portfolio it is reported that 44% of CDL’s 239 unit Teddington Riverside project is occupied and rent inquiries remain “healthy”. Its former Stag Brewery site in Mortlake, Southwest London received planning approval by the committee on planning of London Borough of Richmond-Upon Thames (LBRuT) in July for its mixed-use rehabilitation plan in July. The plan will be subject to an examination at stage two by the Greater London Authority for approval because of the magnitude of the development.

At June 30 at the time of this writing, as of June 30, CDL’s Singapore office portfolio was at committed occupancy at 95.3%, while its Singapore retail portfolio had an average that was 97.8%.

As per Kwek, CDL is focused on following its “growth through enhancement, transformation and growth (GET) approach” that includes capital recycling as well as asset portfolio optimization. “The record-breaking profit growth this year, fueled by significant divestments gave us a significant amount of funds to make strategic purchases that would improve the portfolio we have,” he adds.

Since the beginning in the new year CDL have acquired “iconic iconic trophy assets” including St Katharine Docks in Central London and The Sofitel Central Brisbane and Nine Tree Premier Hotel Myeongdong II in Seoul. CDL has increased its private rental industry (PRS) portfolio by acquiring two properties in Osaka.

“These acquisitions are in line with the company’s objectives to expand our global presence the land-refill plan for Singapore,” adds Kwek. “In the meantime, we are determined to maximize the value of our existing assets, while also continuing to pursue our fund management goals.”

In the wake of the dividend payment in March as well as a small loss in foreign exchange, net assets value (NAV) decreased to 1.6% y-o-y to $10 per share. The revalued NAV was a bit lower in 1.1% y-o-y to $16.79 as compared to the cost per share of $6.94.

“We have a significant discount compared to RNAV and we are working hard to bridge this gap” Kwek says, although Kwek isn’t sure if he will commit to a buyback plan. Certain investors are of the opinion that in the event of an excess funds, CDL may choose a special dividend.

The cash and equivalents during 1H2023 were as $1.95 billion.

An interim special dividend amounting to 4.0 cents for each share was declared. It is due on the 5th of September.

“Despite the ongoing macroeconomic headwinds as well as the inherent market uncertainty, the CDL group will remain flexible and resilient in dealing with these headwinds,” claims CDL the executive chairperson Kwek Leng Beng.

“Over the last 60 years the company has shown proficiency in leveraging the growth potential,” continues the executive chairman. “During periods of uncertainty, opportunities for strategic acquisitions often arise and we have to be quick to seize opportunities to strengthen our position in the market, increase our portfolio and diversify it, and make use of our expertise to achieve long-term sustainable growth.”

CDL’s shares CDL were trading in the range of $6.99 at the end of business on the 10th of August.

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Due to lower-than-expected economic growth, UOL Group believes that office leasing mood in Singapore is cooling

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Lumina Grand condo

UOL Group U14 0.58%has reported earnings of $135 million for the 1HFY2023 that ended in June. This was 64% less than the profits of $371.0 million reported in the same timeframe the year prior.

The lower earnings are primarily due to the of 98% reduction in fair value attributable gains for investment properties. During the time, UOL reported attributable fair value gains on investments properties in the amount of $3.5 million versus $190 million during the same time last year.

Lumina Grand condo truly embodies the perfect blend of comfort, connectivity, and convenience

The 1HFY2023 revenue fell by 11% from a year ago to $1.37 billion. The decline in the revenues from the company’s property development offset the increase in hotel operations.

UOL’s property development revenue decreased by 32% year-on-year to $676.3 million, primarily due to smaller contribution of Avenue South Residence, The Tre Ver, Park Eleven Shanghai and partially offset by increased income recognition for progressive projects like AMO Residence and The Watergardens at Canberra.

The hotel business’s revenue was up the equivalent of 66% year-over-year to $341.5 million. This is because almost all the hotels in the group were able to benefit from the increased demand for travel.

The hotels of the group in Singapore particularly, experienced the biggest increases in y-o y. The trend was followed by Parkroyal Collection Kuala Lumpur which opened in June 2022. Pan Pacific London and Parkroyal Darling Harbour in Sydney.

The occupancy rates of its hotels situated in Singapore, Oceania and others were 66% and at 68% and 59% in all three locations. Other markets in the hotel segment are their properties that are located in China, Vietnam, Malaysia, Myanmar and the UK. The list does do not mention the Hotel in Kuala Lumpur which opened on December 1, 2022.

Revenue per room available (RevPAR) of its properties situated in Singapore, Oceania and others was $212 $147 and $89 respectively which is up from $140 in the past, $109 and $51.

UOL’s profit per share fell by 1% per year up to $503.2 million in the 1H2023, and the gross profit margin was 37% which is four percentage points more than a year ago. The increase in gross profit margin was result of higher income from investments as well as better performance of hotel operations.

The company recorded an overall loss for associated and joint venture (JV) companies of $3.4 million, compared to the total profit of $15.8 million the year prior to. This was due to less contribution from Meyer House in Singapore which was sold to the highest bidder, and Mandarin Oriental Singapore which was closed for renovations in March 2023.

On June 30 the firm’s committed occupancy rate for the Singapore office portfolio was 90.0% while occupancy rates for its UK office portfolio stood as 84.5%. The group’s Australian Office portfolio was 100.0% for the period. UOL’s commitment to occupancy for its retail portfolio was 99.1% as at June 30.

The cash and cash equivalents remained at $1.658 billion over the course of the. However, the higher interest rates have increased the average cost of borrowing up to 3.46% in 1H2023, from 1.74% a year ago. However, the gearing ratio is still at 0.26.

“We have been actively engaged in asset management and improvement initiatives for our current commercial portfolio, while also searching for potential acquisitions,” declares UOL Group director of operations Liam Wee Sin.

The month of June saw UOL inaugurated its new 23-storey 347-room Pan Pacific Orchard designed by the highly regarded WOHA Architects. In early July UOL made it clear that the company had closed its 542-room Parkroyal located on Kitchener Road for $525 million to Worldwide Hotels Group, owned by Hotel 81. It’s regarded as the biggest hotels deal that has been made to be completed in Singapore this year to date.

“We constantly review our hotel portfolio in the hope of finding value at the right moment,” says Liam.

On the 27th of June, a consortium comprised of UOL Group, Singapore Land Group (SingLand) and CapitaLand Development submitted a top offer in the amount of $1.206 billion in exchange for the 5-hectare mixed-use site located at Tampines Avenue 11, in an official auction of the land (GLS) auction. It was a 50/50 joint venture between UOL-SingLand as well as CapitaLand. The bid price is set to $885 per plot ratio (psf ppr).

“Our fifty percent% part in the acquisition of a mixed-retail and residential site in Tampines adds to our supply of residential units within The Outside Central Region,” Liam says. Liam.

The group is seeing the office leasing market in Singapore changing to be cautious because of the slower economic growth forecast. The hospitality and retail sectors are the sole bright areas due to the rise in visitor visits. Retail rents are likely to continue to be supported by a limited pipeline of space while the hospitality industry is expected to be beneficial for the hotels of the group due to the continued growth in corporate and leisure travel.

UOL anticipates that its growth will be slowed by property cooling measures announced on April 27. The macroeconomic headwinds will be a factor and the increased demand for new homes over the coming twelve months.

The cooling measures of April 27 included an increase in buyer’s stamp duty (ABSD) on foreign buyers doubling in 60% as opposed to 30% prior to the cooling measures. ABSD was also increased for Singaporean or Permanent Resident (PR) residential property investors was also increased.

With the government increasing supply and a series of launch this year, including 17 launches so far the housing market has “stabilised” Liam says. Liam. “We’re returning to a more normalized level of about 25% to 50% sales.% up to 50% sales over the weekend of launch.”

In the last year the market for housing benefited from the low unsold inventory and a small pipeline of launches following Covid. Thus, new launches for 2022 had the sales rate of 60% or more on the weekend of launch Liam says. Liam.

In 2022, the entire time, developers launched 17 private residential developments (excluding executive condos, also known as ECs) which is an estimated total of 428 units. Developer sales in 2018 amounted 799 units. In the year so far, developers have launched 17 private residential developments with an estimated 6,300 to 6,500 units (excluding the ECs). Developers have sold 4,800 to 5,000 units thus in the first quarter, according to UOL.

In the wake of the latest cooling measure UOL’s Liam estimates that around the 98% in residential property buyers who purchase launch are Singaporeans as well as permanent Residents (PRs).

“Given this market’s showed signs of stabilisation, and prices have slowed It’s probably time to think about extending the ABSD remission period that was available to EC customers to private buyers of condos,” says Liam. He explains that this request to the government was given by Real Estate Developers’ Association of Singapore (REDAS) “several times” in the past.

Presently, EC buyers do not require ABSD in advance and have six months to sell their current HDB flats after receiving the keys for their brand new EC unit, after they have obtained an Temporary occupation Permit (TOP). “This allows them to move seamlessly and meet their goals for upscaling,” Liam explains.

In contrast private condo buyers must to make payments of the 20% ABSD in the first 14 days of purchasing and get rid of the HDB flats in six months. “This could cause disruption to households,” Liam says. “It can also cause a significant dislocation in the residential rental market, which is an issue in the appeal for Singapore as a hub for talent.”

UOL began construction of their 520-unit Pinetree Hill at Pine Grove in the middle of July, and the development has 29% sold for an average cost of $2,383 per square foot. The 99-year leasehold property is situated on Ulu Pandan Road in District 21.

The project in the pipeline to launch is the freehold 180-unit Watten House located on Shelford Road in prime District 11. The brand new, luxurious low-rise condominium is a renovation of the previous Watten Estate Condo which UOL and SingLand together purchased for $550.8 million or $1,723 per month, including the 8% extra gross floor space as well as a development costs.

Liam says that the sale for Watten House will be done by private previews in October “similar as what we did in the case of MeyerHouse”. The 56-unit MeyerHouse located on Meyer Road in prime District 15 was first viewed in March 2019 and completely sold by December 2022.

A mixed-use site located at Tampines Avenue 11 is expected to produce 1,190 housing units and is expected to open in the 2H2024 timeframe. “It will be one of the biggest integrated developments that includes an integrated transport hub and a the direct MRT link,” says Liam.

UOL shares UOL were up 2 cents (or 0.29% up at $6.94 on August 10.

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The bankruptcy warning issued by WeWork has had no effect on CICT or CDL

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Lumina Grand EC in Bukit Batok

The shares of WeWork dropped to a record minimum of US cents (17.5 cents) on the 9th of August (US time) after the coworking company warned it was in the risk of being bankrupt.

According to a variety of news outlets, including Bloomberg, WeWork warned there is “substantial doubt” about its ability to keep its operations going because of its financial losses and the cancellation of offices space subscriptions.

For the 2QFY2023 which ended on June 30th, WeWork reported a net loss of $397 million, which brought its net loss for 1HFY2023 up to US$696 millions.

Lumina Grand EC in Bukit Batok Road serves as an accessible center, linking them in minutes to local facilities and nearby regions.

In an report in the Bloomberg report in reference to WeWork’s August 8 announcement, the company stated that it was working on reducing its rental cost and in negotiations for “more favorable leases” as well as increasing its the capital and revenue.

The news of WeWork’s possible bankruptcy could be devastating for some of Singapore’s REITs along with property groups.

Based on a table provided on The Washington Post, WeWork has offices in several of CapitaLand’s The Integrated Commercial Trust’s (CICT) C38U 1.55%buildings which includes an entire building in 21 Collyer Quay (the former HSBC building).

WeWork additionally is a tenant of the REIT’s property located in Funan. Other REITs like Suntec REIT T82U -0.8%and Mapletree Pan Asia Commercial Trust (MPACT) N2IU -0.63%are also exposed by WeWork offices located at Suntec City’s Tower 5 and Mapletree Anson located at 60 Anson Road.

Property company City Developments Limited (CDL) C09 -2.39%, also has an WeWork office in City House and St. Katharine Docks in London as well as United Engineers, which is part of Yanlord Land Group Z25 -2.58%, has an WeWork office in UE Square.

“As the largest owner for commercial spaces in Singapore’s central business district (CBD), CICT maintains constant contact with a vast network of prospective and current tenants to know their requirements for space in business and keep abreast of current trends in the market. Singapore is a thriving city with a wide range of industries, continuously receiving leasing interest from a variety of sectors,” says a spokesperson from the REIT.

“In situations when a tenant fails to comply with its lease contract, CICT will follow established procedures to take back possession of the space including the retention on the deposit. In the event of a situation that is not resolved, CICT may explore options such as letting the space or working with other operators in order to keep smooth operations,” adds the REIT’s spokesperson.

Kwek Eik Sheng the group Chief Operating Officer (COO) for CDL says the latest news of WeWork “has to relate to their US operations” and the office sector experiencing a “challenging time” due to the current work-from-home (WFH) style.

In addition, he claims that WeWork’s WeWork offices located in City House and St. Katharine Docks have “strong” occupations and that local markets have been “pretty decent”.

He also adds: “WeWork has been prompt in paying its rent to date however now that the news has come out we’ll keep an eye on the situation closely.”

Sherman Kwek, CDL’s group CEO, said the company will closely monitor the situation but is happy with its presence to City House and St Katharine Docks for the moment. WeWork is a major tenants of City House, with its rental income ranging from two% up to% of its total gross rental revenue (GRI) within it’s Singapore Office portfolio. The rental income it earns in St Katharine Docks makes up approximately 9.9% from the overall revenues from CDL’s UK commercial portfolio.

The Edge Singaporehas also reached out to Suntec REIT, MPACT and Yanlord Land for comment.

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Beverly Hills penthouse seller makes $7 million profit

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Lumina Grand EC

A duplex penthouse located at Beverly Hill was the most profitable condo resalesale deal during the period of July 25 through August 1 according to caveats filed with URA. The 7,556 square foot five bedroom unit sold at $18 million ($2,382 per square foot) in July. The unit was bought from the vendor in January 2007, for a price of $11 million ($1,456 per square foot) and they made an income in the amount of $7million. This amounts to an investment gain of 64% over a period of holding which was 16.5 years.

It is the most profitable transaction to date recorded at Beverly Hill, based on the data collected by EdgeProp Research. This is higher than the previous record set in January 2007 when the vendor of the duplex penthouse made an profit that was $5.3 million.

Lumina Grand EC in western Singapore, it serves as an oasis. It not only provides escape from the busy traffic found near the Central Business District, but it also provides affordable yet well-featured residential options.

The property is located at Grange Road in District 10, Beverly Hill is a boutique condo that was built in 1983. It has the totality of 86 units located in a 23-story block. There are just four bedrooms that are available in the condo that range in size between 3,369 and 3,778 sq feet, and two penthouses that measure 7,556 square feet each.

The penthouse that was sold on July 28, is the first unit in Beverly Hill to change hands within a single year. Prior to that the most recent resales was the 28th of July in 2022 when a 3,778 sq feet unit sold for $8.94 million ($2,367 per square foot). Seller, who bought this unit back in the month of June for $6.1 million ($1,615 per sq ft) and made a profit of approximately $2.84 million from the deal.

Pebble Bay saw the second highest-profitable transaction during the week-long review, with the sale of a 6,114 square ft duplex penthouse at $9 million ($1,472 per square foot) on the 26th of July. The five-bedroom property was purchased by the owner in November 2001. The price was $4.3 million ($703 per square foot) and the seller earned the profit from $4.7 million (109%) after holding the penthouse for less than 22 years.

This is the highest-profit deal ever recorded at Pebble Bay exceeding the previous record of $3.07 million that was made by the owner of a 2,626 sq. ft apartment in the month of July, 2022. The unit was sold at $4.89 million ($1,862 per sq ft).

Pebble Bay is an 510-unit project situated in Kallang and is situated in to the Kallang Basin. It was built in 1997. condominium is owned by CapitaLand is located near Kallang’s Singapore Sports Hub, Kallang Wave Mall, Bay East Garden and East Coast Park. It’s just a five-minute walk from the planned Tanjong Rhu MRT Station on the Thomson-East Coast Line.

In contrast, the sale of a single bedder at 26 Newton was the most profitable transaction of the week in analysis. The apartment of 484 square feet was sold in exchange for $1.05 million ($2,168 per sq ft) on July 28, 2017. The property was bought on March 17, 2017 at $1.1 million ($2,271 per sq ft). The seller incurred an expense of $50,000 which is 5% in a time of almost six and a half years.

It is also the only unit in 26 Newton that has changed hands in June 2022, based on caveats that were lodged. In the moment it was 936 square feet, the unit was bought at $1.84 million ($1,965 per sq ft). Prior to that the sale, a 775 sq feet unit was sold for $1.77 million ($2,278 psf) in March 2022.

26 Newon is a leasehold apartment located on Newton Road in District 11. It’s a development owned by Novelty Group that was completed in the year 2016. The residential block, which is 26 stories tall, houses 180 units, which range from one-bedders up to penthouses ranging between 474 and 1,539 square feet.

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As the District 10 project nears completion, this is a once-in-a-lifetime opportunity to purchase the final units

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Lumina Grand

For property investors and buyers District 10 is one of the most sought-after addresses in the market for residence properties. In addition to being near the city’s center District 10 is also home to many amenities and top-quality schools, and is also close to the main hubs of lifestyle such as Orchard Road, Holland Village and Dempsey Hill.

It’s not surprising that new homes built in this coveted district of the Core Central Region (CCR) remain highly sought-after. While the demand is increasing however, the number of new homes in the CCR is becoming scarce, due to a lack of new launches. This is particularly true of freehold properties which are becoming difficult to acquire.

The scarcity of homes is what has made Leedon Green, a freehold condominium development, more sought-after. It is located in the highly sought-after Leedon Heights area, it is a great chance for buyers with the right skills to purchase an investment property within this highly sought-after district.

Lumina Grand EC is a positive sign for its residents, providing not only accommodation but also an outstanding lifestyle rich in amenities and connectivity.

The development of 638 units, which is only eight minutes away distance from Farrer Road MRT Station, is being developed by reputable real estate developers, MCL Land and Yanlord Land. The project received a lot of attention after its debut in January of 2020 and was the top-selling freehold condo development district 10 over three straight years between 2020 until 2022. The project has sold more than 95% the units it has sold – testimony to its massive popularity with purchasers.

Leedon Green is targeted to be granted a temporarily-issued occupation permits (TOP) before the end of December 2023. Due to its tenure as a freehold, desirable location, and near-completed status adding to its attractiveness Buyers who are looking for a home should not pass up the chance to purchase one of the remaining units in this highly sought-after project. Owner-occupiers have the benefit of being able to relocate to their dream residence in the near future, while investors will soon be ready to start earning rent from their property.

This final phase is comprised of one-plus-study homes ranging between 538 and 689 sq ft., and two-bedroom units that range from 614 to 710 square feet. The prices start from $1.608 million, and $1.943 million, respectively. The price is palatable considering the area of the development and freehold status. “From the perspective of a quantum the starting prices of Leedon Green’s one and two-bedroom apartments are among the most appealing of the CCR,” says Dominic Lee director of the luxury division in PropNex Realty.

Eugene Lim, ERA Realty Network’s chief executive officer is of the same opinion and says that the median the prices of these apartments in Leedon Green remain within the “sweet area” in the range of $2.5 million that the majority of buyers and investors feel happy with. There is also an exclusive three-bedroom unit that is for sale. The 1,356 square feet unit is equipped with private access to a lift and is the only three-bedroom home that is available for sale, which makes it an ideal chance for families and buyers looking for a big-format space.

A snazzy idea
In addition to enhancing the appeal of Leedon Green is the fact that the market for homes has witnessed a dramatic shift over the last year as the price gap between Leedon Green and the CCR as well as other areas reducing.

For the Rest of Central Region (RCR) Recent launches have always set new benchmarks for prices. Since the beginning in the new year prices for new projects across the RCR have been between $2,464 to $2,734 per square foot Based on caveats filed by July 24, 2023.

As a comparison, the average prices of units sold in Leedon Green in 2023 stood at $2,746 per square foot. Additionally, the development has an offer for a pre-TOP Special Promotion the duration of a few days, when the units being sold are priced as low as $2,429 per square foot. This makes for a highly attractive offer, as buyers can purchase a brand new freehold property in the coveted CCR area for prices that are that are comparable to homes that are located in the RCR. Furthermore, when compared to the recent launches, buyers will be able to receive access to the new residence faster because Leedon Green is on the verge of the point of completion.

If they are able to enter the market at the right moment buyers can take advantage of the long-term price growth anticipated in the CCR and be supported by strong fundamentals in the market. This is also in the case of rental prospects as well, with the ERA’s Lim noting that nearby developments such as D’Leedon or Leedon Residence are already commanding median rents of $5.83 per month, at the time of 1H2023, a 10% more than the entire District 10. “Leedon Green is well-positioned to be able to charge a comparable or even higher rent as soon as it’s ready to be occupied,” he opines.

Additionally, when you consider Leedon Green’s vast land-lot of over three hectares, and its large number of units, this bodes well for a robust resales market to develop in the near future.

High-quality homes of the highest quality
The two-bedroom and one-plus-study units located at Leedon Green offer meticulously designed homes that are thoughtfully designed to combine the best of both worlds. With efficient layouts, they have ceilings that double that reach as high as 6m in the dining and living spaces, which create a stunning feeling of space and grandeur.

These high ceilings in condos are expected to be rarer as time goes forward in the wake of a circular from URA on the harmonisation and standardization of floor area definitions which came into force in June, making the units at Leedon Green a precious find.

Furthermore, those who purchase Leedon Green can indulge in an exquisite home that has been fitted out with the most luxurious fixtures and finishes. This includes imported marble tiles for the master bath and Antonio Lupi sanitary wares that come from Italy, Axor and Hansgrohe fittings for sanitary purposes from Germany as well as an Ernestomeda set of kitchens from Italy as well as V-Zug kitchen appliances made in Switzerland and the Liebherr refrigerator from Germany. These top brands guarantee that customers can experience the best quality and craftsmanship within their homes.

PropNex’s Lee believes that the top design as the most distinctive aspect of the project. “There’s an incredibly few projects in this price range which offers the same level of amenities,” he asserts.

Overall it is one of the most successful projects in District 10 over the last few time, Leedon Green is a extremely popular project for both investors and homebuyers alike. With the project getting closer to being completed, the chance to purchase the few units that are available is not to be missed.

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Prices for the recently finished Cuscaden Reserve start at $3,360 per square foot

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Lumina Grand EC by CDL Zenith

The Cuscaden Reserve, which has 192 units Cuscaden Reserve, created through SC Global Developments jointly with Hong Hong Kong-listed developers, New World Development and Far East Consortium, is currently completed after obtaining the Temporary Ownership Permit (TOP) in the last few days. The luxurious project is available for viewing on an invitation only.

The tower of 28 storeys is elevated five stories above the ground. It was developed by Chan Soo Khian, founding design director and principal of SCDA Architects. The other SC Global projects designed by SCDA include the Ladyhill located at Ladyhill Road, Lincoln Modern on Lincoln Road, The Boulevard Residence located at Cuscaden Walk and The Marq on Paterson Hill.

Lumina Grand EC by CDL Zenith recently, the property lot at Bukit Batok West Avenue 5 was secured for the construction of the executive condominium (EC) Lumina Grand.

Cuscaden Reserve is the second and newest project of the series ‘Petit Collectibles’ created by Simon Cheong, the founder and chairman of SC Global. The project was introduced in 2018. Petit Collectibles features predominantly oneand two-bedroom homes that are focused around “flexible functionality”.

Living in luxury

It is the Petit Collectibles series is targeted mostly at people who are looking for SC Global’s high-end residential services however in smaller size units. There are only two projects within this Petit Collectibles series: The first is the 55-unit freehold Petit Jervois located on Jervois Road, completed in January 2022, and completely sold by the beginning of June.

Cuscaden Reserve, located at 8 Cuscaden Road, sits on an elevated 61,597 sq feet site. SC Global and the Hong Kong developers jointly bought this 99-year leasehold site at $410 million during an auction by the government in April of 2018. The land price was $2,337 psf/plot percentage (psf ppr) the site established a new benchmark in Singapore’s 99 year leasehold development sites.

The style that is Cuscaden Reserve is a homage to the Bauhaus movement, and seamlessly integrates architecture as well as art, landscape and traditional craft. The influence of Bauhaus is evident throughout the entire development starting from the yoga space and salt chlorinated pool to the event pavilion the clubhouse lounge, and the fitness area in the common areas to the interiors of the apartments.

“Our 2nd Petit Collectible represents the epitome of living in luxury,” says Cheong. “We have gone further to provide an atmosphere of relaxation and belonging in a peaceful serene and peaceful environment.”

SC Global is extending its Seven Palms Resort Management and Concierge Services to residents of their Petit Collections series. Seven Palms Resort Management Seven Palms Resort Management was created in 2002 to be the estate management division within SC Global, providing services to all of its developments that have been completed.

The company even has a collaboration in the British Butler Institute, which offers training for the Seven Palms Resort Management and Concierge personnel. “We would like to protect the experience we offer our residents through our administration of the estates” states SC Global spokesperson. SC Global spokesperson.

The clubhouse, which is private, located at Cuscaden Reserve provides co-working spaces for those who work from home who want to connect and work. There are two private workspaces for people who require video calls, as well as a conference room. There is also lounge space that can be used as a space where residents can meet with friends and enjoy a relaxing time.

The heart of the city

There are units that range from one, two and three-bedroom units ranging with sizes ranging from 700 sq feet to 1,163 square feet. Six 2,099 square feet of four-bedroom units starting on at the top of 21st. The four-bedder on every floor can be converted into a two- or three-bedroom apartment. The rooms have uninterrupted views of the trees-lined Orchard Boulevard and the city skyline. The tower’s crown jewel is a duplex penthouse with 3,755 square feet located on both the 28th and 27th floors.

The interior layout of the Cuscaden Reserve was inspired by Bauhaus architect Mies van der Rohe’s designs in The Edith Farnsworth House between 1945 between 1945 and 1951. Farnsworth House was designed to be an unfurnished one-bedroom retreat for weekenders. All utilities are in the central part of the house. It offers views of the entire area and extending the living space and allowing a seamless flow between the living area and the natural surroundings.

The apartments in Cuscaden Reserve are therefore designed with a kitchen at the middle that opens the living space and makes the most of the views. “We’ve drawn inspiration from Mies Van der Rohe’s Farnsworth House to create a flexible open-plan layout that allows residents to build their own space that is tailored to their personal requirements,” says the SC Global spokesperson. “Our idea was to design an elegant, luxurious pied-a-terre located within the city that embodies modern luxurious living.”

Telescopic doors and flexibility

It’s not surprising that this project is more appealing after it has been complete, says Marcus Chu, CEO of ERA Singapore, one of the jointly appointed marketing agencies of Cuscaden Reserve. “Buyers can enjoy the tranquility as well as seamless integration between functional and design that meets the demands of urban dwellers today.”

“There are a lot of clever and attractive options in Cuscaden Reserve,” Chu mentions. One example is the telescopic doors that are found in the one, twoand three bedroom units. They are moveable and can separate bedroom from the main living space. They let homeowners expand the space or shut off one room if required. “Singles and young families will appreciate this flexibility, which lets them change their house layout to meet their needs and preferences,” he adds.

Each unit is equipped with a private area that is enclosed or a balcony that residents can use to take in the views, either to Orchard Boulevard or Cuscaden Road that overlooks the lush greenery that is Bukit Timah. In Cuscaden Reserve, it is not just the big apartments that have lifts that are private. All three-bedroom and the majority of two-bedroom units are equipped with lift access private.

Attractive pricing

“Lending an air of elegance can be the grand departure, as well as the concierge service provided through Seven Palms Resort Management,” says Dominic Lee, head of the luxury department of PropNex The other agency for joint marketing that works for Cuscaden Reserve.

Lee sees the property attracted by “foreigners who wish to move into the city either as a couple or a single, or young people whose parents finance their house purchase” Lee adds Lee. “Given the high-end of the fixtures and care for particulars, it’s likely to attract more homeowners instead of investors.”

Prices for the units in Cuscaden Reserve start from $2.352 million ($3,360 per square foot) for a one-bedroom unit that is 700 square feet. Two-bedroom units with 807 square feet with a private lifts begin at $2.774 million ($3,437 per square foot) and those with 818 square feet are priced higher than $2.828 million ($3,457 per sq ft).

Two-bedroom-plus-study units of 936 sq ft are from $3.42 million ($3,654 psf). Meanwhile, a three-bedroom-plus-study of 1,163 sq ft is over $4.289 million ($3,688 psf). The 2,099 sq ft modified four-bedroom units begin at approximately $8.3 million ($3,954 per square foot) for the one on the 21st level. So PropNex’s Lee believes that Cuscaden Reserve’s initial costs to be “attractive”.

At Park Nova adjacent to Park Nova The 54-unit freehold development from Hong Hong Kong listed Shun Tak Holdings, two-bedroom units measuring 1,432 square feet will cost starting at $6.19 million ($4,324 per sq ft) and up $6.5 million ($4,543 per sq ft) basing on caveats that were filed between November to May 2023.

The latest phase of property cooling measures, which took effect in April, in which the amount of stamp duty for additional buyers (ABSD) for foreign buyers doubled up to 60% as opposed to 30% prior to that, “demand from foreigners buying homes with more than 2,000 square feet has basically ceased to exist” according to Alan Cheong, executive director of research and consulting for Savills Singapore.

Where money isn’t an issue

“Demand in the most sought-after districts is currently driven by local residents who are zooming into one- and two-bedroom apartments,” adds Cheong. “And for those who are interested Cuscaden Reserve’s pricing starting at $2.35 million are within their price range.”

He claims that the character of residents living in the District 10 neighborhood that is comprised of Cuscaden Road and Orchard Boulevard is categorized as “money is not a factor”. “For those who fall into this category it doesn’t matter if it is a property is freehold or leasehold for 99 years is not as important as the location and the quality of the finishes and the fit-out,” he adds. “This is the area where Cuscaden Reserve will have an advantage.”

Orchard Bel Air is the sole 99-year leasehold property located in Orchard Bel Air, which is the only 99-year leasehold development in Cuscaden Road, and Orchard Boulevard area. The condo, which has 71 units, is close to the Orchard Boulevard MRT Station (Thomson-East Coast Line) which was opened last November. The property has a remaining lease of 56 years in its lease of 99 years that began in 1980.

In 1984, the project was completed. Orchard Bel Air relaunched for collective sales at the beginning of the year, but was unable to locate a potential buyer because owners refused to lower their price of the reserve. The company was relaunched with $587.5 million, the exact price that was offered at the time of its launch of marketing agent Knight Frank last July.

The cost translates into an average land cost of $2,620 per square foot ppr after adjusting for the lease top-up fee in the amount of $136 million. In addition to the seven% bonus floor space allowed for balconies and terraces, the land rate is just a bit lower, at $2,551 psf per.

Due to the increased costs of construction and the increased construction costs, an property consultant believes that a new development on the Redevelopment site in Orchard Bel Air would have to be sold for between $4,200 and $4,400 today.

Gentrification

Cuscaden Reserve, the newest project on the block will benefit from the gentrification process within this Cuscaden Road and Orchard Boulevard region. In the past three years, there was plenty of construction happening in the area. But, today, the majority of the work is done.

It’s just a 2-minute walk to the rear gate Cuscaden Reserve to the Orchard Boulevard MRT Station. Camden Medical Centre and Botanic Gardens are accessible by foot.

Nearby There are Tanglin Mall and nearby are Tanglin Mall and Orchard Road malls, Michelin star restaurants and luxurious hotels like St Regis, Four Seasons and the soon-to-open Artyzen Hotel along with the Singapore Edition Hotel. The road that runs across to Cuscaden Reserve, the former Regent Singapore has also been transformed into Conrad Singapore Orchard and is going through a transformation.

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The Lermit Road GCB is on the market for $137.2 million

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Lumina Grand condo

A top-quality Bungalow located on Lermit Road, off Nassim Road which is on the market for sale with an estimate cost of $137.2 million, as per the press release issued by PropNex Realty, the marketing agent. The property is to be sold via an exclusive treaty sale.

The future is full with exciting new projects for Lumina Grand condo residents, not just in Bukit Batok Town but also in neighboring communities like Hillview.

The GCB is located in the Cluny Park GCB Area, and the home is on a 29,818 sq feet area. This means that the estimated price is an average of $4,600 per square foot on the land. The detached freehold house was built in the 90s and includes a swimming pool, as well as an two-storey structure with parking in the basement.

“Lermit Road” in The Nassim planning sub-zone located in the sought-after District 10 is one of the landed residential enclaves that have been branded with exclusivity and luxury located in Singapore,” says Henry Benjamin Lim Director of the Good class Bungalows and Prestige located at PropNex.

He says there are just 16 detached houses along Lermit Road and transactions for large properties that have land areas of over 16,140 sq ft (1,500 square meters) are extremely rare with just one unit having been sold twice in the past 30 years.

This means that the GCB to be sold is an exceptional chance for ultra-high net worth individuals to buy a substantial freehold property located in Singapore’s top sought after neighbourhoods Lim says. Lim. “In recent times, a number of GCBs located nearby on Nassim Road have fetched more than $200 million to $100 million each, indicating the worth and popularity of these properties in the eyes of savvy buyers,” he says.

The GCB located at Lermit Road is close to the Singapore Botanic Gardens as and Napier MRT station on the Thomson-East Coast Line. The site is located near the Dempsey Road lifestyle area, Tanglin Mall, Gleneagles Medical Centre and Hospital and Napier Road.

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JustCo and Changi Airport Group will open a pay-per-minute co-working space

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Lumina Grand EC in Bukit Batok

Co-working company homegrown in the Philippines JustCo has joined forces together with Changi Airport Group to launch and operate a pay-per-minute coworking center at Changi Airport Terminal 3. The new facility is being billed as Asia’s first coworking facility in an airport and will be open by the end of the quarter.

Lumina Grand EC in Bukit Batok

“To accommodate the various requirements of business travelers as well as modern-day workers or digital nomads Changi Airport Group has worked closely with JustCo to offer a top-quality “pay-per-minute” workspace in Changi Airport,” says Lim Peck Hoon, executive vice president of commercial for Changi Airport Group.

The brand new JustCo located at T3 is also the first location that provides 24/7 access. It will provide 50 hot-desk workstations as well as private office suites. an office lounge as well as meeting rooms that include video conferencing equipment as well as quiet corners and collaborative areas.

The area will also include a nap area with food items and an area with a pantry that has vending machines for food. The nap zone will give people with a tranquil and relaxing place to relax between their trips.

JustCo Changi Airport T3’s pay-per-minute pricing plan can be “flexible and appropriate for those who travel or people who require an office space for a few hours or even the couple of minutes” According to Kong Wan Long, co-founder and Chief Commercial Officer at JustCo. Kong states: “We are offering a efficient and affordable workspace for patrons and travelers at Changi Airport, regardless of the duration of their time.”

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Kajima opens The Gear, its new regional headquarters in Changi Business Park

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Lumina Grand EC

Japanese construction as well as real estate company Kajima Development Pte Ltd, which is a wholly-owned subsidiary owned by Kajima Corp, officially launched its new regional headquarters as well as an R&D and innovation hub in Changi Business Park on August 4. The name is The Gear: Kajima Lab for Global Engineering, Architecture & Real Estate.

Lumina Grand EC in Bukit Batok provides unequaled convenience and quality living due to its ideal location, extensive facilities package, and proximity to everything required for daily living.

Kajima has an extensive time in Singapore beginning with its first venture was it’s Maruzen Oil Refinery in 1962 which was followed by its Jurong Shipyard Dock & Wharf in the year 1965. Kajima Development had been looking for “an an anchor in the area” for more than 10 years. “The late Dr. Shoichi Kajima gave us the a task to establish the headquarters of our company located in Singapore,” said Shuichi Oishi, the CEO Kajima Development Kajima Development, in a announcement on August 4.

Kajima Development and its local construction subsidiary, Kajima Overseas Asia Singapore has begun construction in the site in Changi Busines Park in August 2020. The building was finished, thanks to its Temporary Occupation Permit (TOP) received on March 31, despite disruptions of construction caused by the outbreak of the virus.

The modern facility was designed by Kajima’s group of architects and engineers from Japan and is Kajima’s first R&D and innovation hub in the world. “It is a symbol of Kajima’s dedication to the sustainable, connected and future-proof Singapore” according to the company.

This R&D will be governed through Kajima Technical Research Institute Singapore that has been located in Singapore since 2013. It is planning to speed up the development of new solutions to the urbanisation and climate change problems.

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On the first weekend of sales, Wing Tai sells 23% of LakeGarden Residences at an average price of $2,120 psf

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Lumina Grand

On the weekend of 5-6 August two residential developments for suburban residents within the Western region announced: Wing Tai Holdings’ 306-unit LakeGarden Residences private condo on Yuan Ching Road in Jurong and the 360-unit Altura executive condominium (EC) located in Bukit Batok West Avenue 8.

LakeGarden Residences LakeGarden Residences registered sales of 71 units, which is the equivalent of a take-up that was 23.2% as at 6pm on the 6th of August, Sunday. The average cost for units that were sold is $2,120 per square foot.

Lumina Grand represents a positive sign for its residents; offering not just housing but an extraordinary lifestyle enriched with amenities and connectivity.

As per Wing Tai, only 209 units from the project were made available. This means that the sales represent 34% of units released.

The developer claims that the developer claims that 73% of buyers are Singaporeans The majority of them are Singaporeans, including Singapore Permanent Residents making up 25%. Two% comprise foreign nationals.

“All kinds of units were very well received and the two-bedroom models being the most well-loved,” says Stacey Ow Yeong the head of the marketing department at Wing Tai Property Management. “Majority of buyers are upgraders and families who reside in the Western region of Singapore. This is a sign of a growing demand for private residences in the fast-growing Jurong Lake District.”

As per Ow Yeong, units offer “unparalleled views of Jurong Lake Gardens” and lifestyle amenities that are focused on sustainability and wellbeing. She believes the Lake Gardens Residences will continue to draw homebuyers from the area, and those who are looking forward to the immense growth potential that lies ahead in the Jurong Lake District (JLD).

Profiting from JLD transformation
LakeGarden Residences LakeGarden Residences is an expansion of the old Lakeside Apartments, which Wing Tai purchased in bulk in the year 2000 at $273.89 millions in the month of May. Some of the buyers of LakeGarden Residences comprised former residents of Lakeside Apartments, according to PropNex.

The residents who will be living in the future at the LakeGarden Residences will enjoy having access to the 90 ha Jurong Lake Gardens as well as its location in the upcoming JLD.

Nearly the entire 80% of the homes sold at the time of the launch of the LakeGarden Residences comprised one- or two-bedroom homes according to Mark Yip, CEO of Huttons Asia. “This is a sign that investors recognized the potential in remaining in JLD and acted accordingly to protect the potential growth,” he adds. “Given that there aren’t many developments near Jurong Lake, the price increase could be enormous.”

Plans to build an integrated tourist attraction as well as The future Jurong Innovation District will see “JLD transformed into a vital business and lifestyle center” According to Marcus Chu, CEO of ERA Singapore.

The government has commenced the construction of Jurong Business District with the opening of the 6.5 hectare master developer site that went up for tenders on the 22nd of June. The site is a combination of three sites and is expected to cost around $5 billion, according CBRE. CBRE.

The creation of Jurong Business District “could help speed the process of transforming Jurong and help the people living in the area” According to Ismail Gafoor, CEO of PropNex.

‘Buyer fatigue’

The LakeGarden Residences is the first private condominium launch in the Jurong Lake District since the 710-unit Lake Grande in July of 2016. “The taking-up ratio of 23% was slightly lower than what we had hoped for,” says Gafoor.

More than 1,800 people attended The LakeGardens Residences’ sales gallery over the course of a fortnight before the grand opening on August 5th, with the developer receiving 196 cheques for declarations of interests. The result is the conversion rate of around 36.2%.

Gafoor explains the slower homes sales on the basis of “buyer fatigue” as 2,534 new homes being built in rapid intervals across both Rest of Central Region (RCR) and Outside Central Region (OCR) in the month of March five98 units at Lentor Hills Residences (OCR) The Myst (OCR), The 4-08 unit The Myst (OCR) as well as the 528-unit Pinetree Hill (RCR) and the 1,008-unit Grand Dunman (RCR). “Buyers are likely taking the time to evaluate and weigh the various alternatives before making the purchase of a home,” he says.

Justin Quek, deputy CEO of OrangeTee is of the opinion that there’s a certain amount of exhaustion from the multitude of launches coming in 2023. He also says that more launches are coming in the near future. “Buyers within OCR OCR segment are receptive to the proximity to amenities like the MRT station and could choose alternatives that satisfy these demands,” he says.

Buyers in this typically are in search of a new home according to Quek and they may perhaps not be in any rush to buy at the beginning of the process and with TOP being expected 2027.

Dialing down FOMO

The weekend following (August 12-13) will witness the launching of three additional projects, one for each submarket: the 324 unit TMW Maxwell located in District 2 (RCR) The Orchard Sophia, a 78 unit Orchard Sophia on Sophia Road in District 9 (Core Central Region) and the of 105 units Arden on Phoenix Road in Bukit Batok (OCR). Arden located on Phoenix Road in Bukit Batok (OCR).

Scheduled for launch in the 4Q2023 period are two new condos for private ownership in the Jurong Lake District (JLD) which includes the 360-unit J’Den the 40-storey residential building with commercial podium of two stories built from CapitaLand Development. It’s a renovation of the old JCube mall, a shopping centre with an ice skating skate rink. J’Den will be linked directly with the Jurong East MRT Interchange Station as well as the nearby Westgate and the IMM Building through J-Walk which is a pedestrian path within JLD.

The second is the 440-unit Sora located on Yuan Ching Road, adjacent to The LakeGarden Residences. Sora is a renovation of the previously-owned Park View Mansions on Yuan Ching Road and was purchased in group for $260 million from a consortium comprising Chip Eng Seng, SingHaiyi Group and KSH Holdings in July 2022. Sora will feature a 330m frontage on Jurong Lake Gardens.

“The launch of innovative projects have helped to dial down the fear of missing out], which was a reason that has prompted buyers to move into the market faster in recent years,” says Gafoor. “The decrease in sales is a result of buyers taking longer to think about their options before making a decision on the purchase of a property buying.”

A few buyers are concerned about the slowing of Singapore’s economy as per Huttons Yip. “Others might have stayed put and waited for new projects to come on the market and then to conduct a comparative before making a decision,” he says. “However each project has its own selling point and is designed to meet the specific needs of buyers’ wants and needs.”

New launches’ prices are’very competitive’.
The pricing for new launches starting in 2023 have been competitive, according to Yip and he has 99 year leasehold OCR projects in the $2,000 – $2100 per sq ft range and RCR projects within the $2,400 to $2,500 price range. Yip does not anticipate that prices for new projects will be softer in the 2H2023 timeframe.

“Singapore imports a majority of its construction material including labour” Yip explains. “With the world’s inflation rate being stubbornly high, the cost of imports and labour are rising. In the same way, interest rates remain at a very high. They have always pushed up prices and increased the prices for selling new houses.”

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