{"id":37418,"date":"2016-12-08T10:47:49","date_gmt":"2016-12-08T03:47:49","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/cdl-to-benefit-from-improving-market-sentiment\/"},"modified":"2016-12-08T10:48:48","modified_gmt":"2016-12-08T03:48:48","slug":"cdl-to-benefit-from-improving-market-sentiment","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/cdl-to-benefit-from-improving-market-sentiment\/","title":{"rendered":"CDL to benefit from improving market sentiment"},"content":{"rendered":"


\n CDL has the largest available land bank and unsold inventory, with an estimated 2,909 units worth $5.8 billion.
\nImproving sentiment in the housing market will likely benefit City Developments Limited (CDL), as it remains the developer with the most available inventory, with much of its land bank purchased at a lower cost in previous years, revealed a Credit Suisse report.
\nThe report noted that the introduction of the final rounds of property cooling measures, including the Total Debt Servicing Ratio (TDSR) in 2013, saw transaction volumes drop 66 percent to 12,850 units in 2014 from 37,873 units in 2012.
\n\u201cWhile transaction volumes remained tepid with declining prices a dampener on demand, we have observed a resurgence in volume growth across both the primary and secondary markets in recent quarters,\u201d said Credit Suisse.
\nIn fact, latest data for Q3 2016 showed that total sales volumes increased 10.5 percent year-on-year, on the back of strong resale volumes across all markets.
\nResale volumes, which increased 53 percent year-on-year in Q3, would be a \u201cbetter representation of buyer sentiment rather than total volumes, as they exclude the moderating impact on primary sales volumes from the decline in land sites in the market\u201d, noted Credit Suisse.
\nThe report stated that total unsold units (including completed, under construction and planned developments) have also progressively declined to an all-time low of 22,502 units.
\nWith this, Credit Suisse expects the recovery in market sentiment to benefit CDL.
\n\u201cBased on our proprietary analysis, CDL has the largest available land bank and unsold inventory, with an estimated 2,909 units worth $5.8 billion, half of which are located in the prime CCR region. Furthermore, much of these would have been acquired at a lower cost in earlier years, hence supportive of margins.\u201d
\nThe Swiss banking giant believes volumes are a more important driver of share price performance than prices per se, since they better reflect sentiment in the residential market.
\n\u201cCDL remains one of the most direct and investable residential proxies in the Singapore market for investors, and we expect CDL to re-rate with gathering sales momentum,\u201d it said.
\n\u201cWith $3.5 billion in funds AUM through three PPS deals thus far, we expect further PPS initiatives to drive value creation, on track to meet its $5 billion target by 2018. This would serve as share price catalysts to drive a further narrowing of its current discount to NAV.
\n\u201cAt 0.85x P\/B (-1 SD from historical averages) and a 31 percent discount to RNAV (-0.9 SD from the historical average), valuations remain attractive.\u201d
\n\u00a0
\nRomesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email\u00a0romesh@propertyguru.com.sg
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…CDL to benefit from improving market sentiment<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

CDL has the largest available land bank and unsold inventory, with an estimated 2,909 units...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-37418","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-9Jw","jetpack-related-posts":[{"id":21668,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/cdl-seeks-pps-transaction-for-nouvel-18-worth-965m\/","url_meta":{"origin":37418,"position":0},"title":"CDL seeks PPS transaction for Nouvel 18 worth $965m","date":"July 29, 2016","format":false,"excerpt":"\r Nouvel 18 was completed almost two years ago, but has yet to be launched. Property developer City Developments Limited (CDL) is working on a Profit Participation Securities (PPS) scheme involving its Nouvel 18 condominium, with a deal size of $965 million, revealed Credit Suisse citing The Business Times. A\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":31412,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/cdl-exits-stake-in-luxury-condo\/","url_meta":{"origin":37418,"position":1},"title":"CDL exits stake in luxury condo","date":"October 24, 2016","format":false,"excerpt":"\r Nouvel 18 is a prime freehold project near Orchard Road. (Photo: CDL) Sunmaster Holdings, a unit of City Developments Limited (CDL), has entered into an agreement to exit its entire interest in Summervale Properties, the owner of Nouvel 18 \u2013 a 156-unit luxury residential development on Anderson Road, for\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":63408,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/cdl-to-benefit-from-property-upcycle-calls-for-review-of-qc-policy\/","url_meta":{"origin":37418,"position":2},"title":"CDL to benefit from property upcycle, calls for review of QC policy","date":"August 11, 2017","format":false,"excerpt":"\r CDL\u2019s Kwek said the property market appears to be getting stronger, but warned of dangers such as an upward spiral in land costs and housing prices. Property giant City Developments Limited (CDL) said it is well-poised to benefit from the property upcycle after several years of subdued market conditions\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":90384,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/oxley-leapfrogs-cdl-as-singapores-largest-developer\/","url_meta":{"origin":37418,"position":3},"title":"Oxley leapfrogs CDL as Singapore\u2019s largest developer","date":"June 4, 2018","format":false,"excerpt":"\r Oxley\u2019s executive chairman and CEO Ching Chiat Kwong. Oxley Holdings has surpassed City Developments Limited (CDL) as the city-state\u2019s biggest property developer in terms of the number of sellable homes, reported Singapore Business Review. In fact, Oxley and its joint venture partners are set to build more than 4,000\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":103947,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/sales-at-cdl-projects-remain-healthy-report\/","url_meta":{"origin":37418,"position":4},"title":"Sales at CDL projects remain healthy: report","date":"February 13, 2019","format":false,"excerpt":"\r Artist\u2019s impression of the condo gym at Whistler Grand. Whistler Grand, a 716-unit condominium in West Coast Vale in District 5, has found buyers for 251 units or 83 percent of the 300 units released for sale, according to latest data from the Urban Redevelopment Authority (URA). The units\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8203,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/no-respite-from-mounting-extension-charges-for-developers\/","url_meta":{"origin":37418,"position":5},"title":"No respite from mounting extension charges for developers","date":"March 3, 2016","format":false,"excerpt":"\r Luxury apartments in the Orchard area. (Photo: Cheryl Marie Tay) Property developers forked out $24.9 million in extension fees last year for failing to dispose of all the residential units in their developments within the mandated period, reported The Straits Times. While this is lower than the $29.98 million\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/37418"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=37418"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/37418\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=37418"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=37418"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=37418"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}