City Developments expects ‘cautious’ property market to continue

SINGAPORE--Property developer City Developments expects the Singapore residential market to be cautious with moderated volumes and a lower rate of sales compared with the peak of the property cycle.

However, it believes that well-located projects, especially those near to MRT stations which are competitively priced, should continue to attract reasonable buying interests.

The company made these comments today (May 14) as it announced a 13 per cent decline in first quarter net profit to S$119.7 million on lower divestment gains from property holdings. Revenue declined 5.4 per cent to S$734.2 million.

Its optimism about demand for well-located developments prompted it to launch Commonwealth Towers on May 1, which is located next to Queenstown MRT station. The company said that response has been ‘good’ with over 66 per cent of the 400 units released sold to date.

City Developments is also going ahead with the launch of Coco Palms, which is close to Pasir Ris MRT station, the Bus Interchange and White Sands Shopping Centre.