CDL leads the pack with eighth consecutive Top Developer award

City Developments Limited (CDL) was crowned Top Developer at the EdgeProp Singapore Excellence Awards 2024, marking the eighth consecutive year it has achieved this feat and making it the only developer to have attained such a streak. The top honour, which recognises developers with the highest overall scores, comes on top of nine awards CDL clinched across various residential and hotel properties. “This honour reflects our team’s dedication and the trust of our partners and stakeholders,” said Chia Ngiang Hong, group general manager at CDL, in his acceptance speech at the awards event on Oct 30. One of CDL’s winning developments that night was Amber Park, which garnered the Top Development award for completed projects. The 592-unit freehold condo along Amber Gardens in District 15 was jointly developed by CDL and Hong Realty, a unit of Hong Leong Group. Completed in December 2023, the fully sold condo occupies the former site of a 200-unit development also called Amber Park, which CDL built in the 1980s. Read also: CDL to preview Union Square Residences with prices starting from $1.38 mil Advertisement Advertisement The development’s win at this year’s awards holds special significance for Chia, who had just started his career at CDL when the original Amber Park was conceived. “Now, about four decades later, CDL had the rare opportunity to reimagine this iconic residence for the second time, following a collective sale and redevelopment into today’s new Amber Park,” he said during his speech. Chia emphasised that this development highlights how CDL, as a property developer, goes beyond constructing buildings to create lasting legacies. “We have the unique responsibility to continually shape and reshape our projects — creating, renewing and transforming the spaces to meet the evolving needs of our communities.”

Holistic approach

Tembusu Grand emerged as one of the night’s big winners, sweeping awards for Design Excellence, Innovation Excellence, Marketing Excellence and Showflat Excellence. A joint venture between CDL and MCL Land, the 638-unit condo is located on Jalan Tembusu in District 15, near Amber Park. The project stood out in large part due to its unique concept inspired by Tembusu heritage trees. “The development was anchored on this theme — from the site planning, architectural design and design features,” Chia says. He adds that the development is positioned as a new gem for the Katong neighbourhood, offering a lifestyle that combines elegant residences, convenience and tranquillity. The offering resonated with buyers, with Tembusu Grand moving over 80% of its units since its launch in April 2023 at an average price of around $2,460 psf. The project also achieved the People’s Choice Award for an uncompleted project at last year’s awards after garnering the highest votes from the public. The appeal of Tembusu Grand is a testament to CDL’s holistic approach when conceptualising residential developments, says Chia. “We seek to crystallise the unique lifestyle and differentiating factor offered by each and every residential project.” Read also: CDL to preview Union Square Residences on Nov 1, featuring 366 luxury apartments Advertisement Advertisement To meet the evolving needs of today’s homebuyers, the developer also embraces innovative technologies to enhance the living experience. For instance, at Lumina Grand, which won the Innovation Excellence and Top Executive Condominium (EC) titles at this year’s awards, each unit has a smart home gateway system that connects all smart appliances such as the digital lockset, surveillance system, and air conditioning and lighting controls. Residents will also have access to a smart community system that makes it convenient to host visitors and book facilities. The 512-unit Lumina Grand is an EC at the junction of Bukit Batok West Avenue 5 and Bukit Batok Road. It was the first EC launch this year, with 53% of units taken up during its launch weekend at an average price of $1,464 psf. To date, 426 (83%) units at the EC have been sold at an average price of $1,510 psf, based on caveats lodged as of Nov 1.

Winning collaborations

Apart from Amber Park, CDL’s winning developments include two others that have been completed. The first is Sengkang Grand Residences, a 680-unit condo along Compassvale Bow that received its temporary occupation permit last November. The project was awarded the Sustainability Excellence title, adding to the Innovation Excellence and Top Development awards it scooped up in 2020. Developed by a joint venture between CDL and CapitaLand, the 99-year leasehold condo is part of the Sengkang Grand integrated development that includes the three-storey Sengkang Grand Mall, with direct access to a bus interchange and the Buangkok MRT Station (North-East Line). First launched in November 2019, units at the condo were fully taken up by August 2022, fetching an average price of about $1,730 psf. CDL’s winning streak at the EdgeProp Singapore Excellence Awards also extends to its hotel developments. The Singapore Edition, a 204-key hotel on Cuscaden Road, garnered the Best Luxury Hotel award. It is part of a mixed-use development by CDL, Hong Leong Holdings and Lea Investments that includes Boulevard 88, a 154-unit freehold luxury condo. Following a soft opening last November, the five-star hotel officially opened its doors in February. The Singapore Edition was conceived in collaboration with American hotelier Ian Schrager, who co-created the Edition brand of hotels with Marriott International. Reflecting on the partnership, Kwek Eik Sheng, CDL’s group COO, says the partnership was born out of CDL’s vision to create a bespoke hospitality experience and an iconic landmark at the site of the former Boulevard Hotel. Read also: City Developments reported a 32% y-o-y rise in net profits in 1HFY2024 Advertisement Advertisement The brand’s exclusivity was a draw; The Singapore Edition is the first Edition property in Southeast Asia and only its fifth within Asia Pacific. In addition, the partnership offered a one-of-a-kind, individualised hotel experience spearheaded by Schrager, combined with Marriott’s operational scale and expertise. That made it the perfect fit for the property, Kwek says.

Resilient performance

The private residential market saw relatively subdued performance for the first three quarters of the year, as an uncertain economic environment and cautious sentiment led to fewer project launches. URA data shows that private residential sales volume for the first nine months of the year dropped by 8.1% y-o-y. Prices marginally rose 1.1% over the same period, moderating from the 3.9% growth the year before. The cautious sentiment also extended to land sales. For example, In September, URA announced that the tender for the master developer site at Jurong Lake District would not be awarded as the tendered price of $640 psf ppr was deemed too low. A consortium between CDL and four other developers — CapitaLand, Frasers Property, Mitsubishi Estate Co and Mitsui Fudosan Co — had submitted the only two bids for the 6.5ha site. However, despite the challenging environment, CDL reported healthy take-up rates for its residential projects. After launching Lumina Grand in January, the group’s associate company, Cityview Place Holdings, released 58 of the remaining 203 units it still owns at The Residences at W Singapore Sentosa Cove for sale. The units were relaunched at prices from $1,648 psf, some 40% below peak prices when the 228-unit, 99-year leasehold luxury condo on Ocean Way was launched in 2010. Forty-five of the released units were sold on launch day, prompting Cityview Place to release more for sale. Another 20 units were snapped up the following day. The 65 units sold fetched an average selling price of $1,780 psf. In July, Tripartite Developers (a joint venture between Hong Leong Holdings, CDL and TID) launched the 276-unit freehold condo Kassia, located on Flora Drive, off Upper Changi Road North. About 52% of units were moved during launch weekend, fetching prices ranging between $1,821 psf to $2,177 psf. Caveats as of Nov 1 show that around 61% of units have been sold at an average price of $2,010 psf. Chia credits the resilient sales across its projects to CDL’s deep understanding of the market. “Our success has very much been driven by our dedication to quality and service excellence, as well as our ability to read the market and time our launches appropriately,” he says. He adds that despite broader macroeconomic headwinds, market fundamentals remain strong. “There remains a genuine demand for properties that are well-located, thoughtfully designed and sensitively priced.”

Pick-up in activity

Those strong fundamentals are propelling fresh tailwinds in the residential market following the announcement of the US Federal Reserve Board’s interest rate cuts in September, coupled with more new launches. At the start of October, CDL commenced previews for Norwood Grand, its 348-unit residential development on Champions Way in Woodlands. Following its launch on Oct 19, the 99-year leasehold project saw an overwhelmingly positive response. Two hundred and ninety-two units, or 84%, were taken up during the launch weekend at an average price of $2,067 psf, making it the best-performing private residential launch so far this year. CDL also unveiled plans for Union Square, a large-scale mixed-use development at Havelock Road. It is a redevelopment of CDL’s Central Mall properties — made up of an office tower and conservation shophouses — and the Central Square commercial and residential development, which the developer bought in 2021 for $315 million. Union Square comprises Union Square Central, a Grade A premium office tower, and the 366-unit Union Square Residences. It also includes retail and F&B spaces and a co-living component with a hotel licence. Union Square Residences opened for preview on Nov 1, with sales bookings scheduled to begin on Nov 9. Apartments are priced from $1.38 million. The developer has at least two projects already lined up for 2025. In the first half of next year, it intends to launch The Orie, a 999-year leasehold residential development with 777 units on Lorong 1 Toa Payoh. The Government Land Sale (GLS) site was purchased by CDL, Frasers Property, and Sekisui House last November for $968 million or $1,360 psf per plot ratio (psf ppr). In April, CDL had purchased the Zion Road (Parcel A) GLS site through a joint venture with Mitsui Fudosan. The partners submitted the sole bid of $1.107 billion, or $1,202 psf ppr, for the 99-year leasehold site, which will pilot a new long-term serviced apartment scheme. Subject to approvals, the site will be developed into an integrated mixed-use development comprising two high-rise towers with over 700 residences, a retail podium, and a 36-storey tower with over 300 long-stay serviced apartments, says Chia. It is expected to launch in 2H2025.

Capital recycling efforts

CDL’s landbanking initiatives come amid ongoing capital recycling efforts. The group embarked on a $1 billion divestment programme this year, putting up several assets for sale. These include strata commercial units at Fortune Centre and Sunshine Plaza, strata retail units and the carpark at The Venue Shoppes, and strata industrial units at Citilink Warehouse Complex and Cititech Industrial Building. Last month, CDL and joint venture partner MCL Land put Piccadilly Galleria, the retail podium of the 407-unit condo Piccadilly Grand, on the market for $75 million or $3,724 psf, based on the net lettable area of 20,140 sq ft. The 99-year leasehold development is slated for completion in 2H2025. Group COO Kwek Eik Sheng says that CDL has put up about $350 million worth of assets for sale to date in Singapore. In 1H2024, about $172 million in sales were chalked up from the units at Citilink Warehouse Complex, Cititech Industrial Building and Fortune Centre. In addition to the divestments, CDL has also been making acquisitions across various segments and geographies. For instance, in May, it completed the purchase of the Hilton Paris Opéra hotel for EUR240 million ($350.2 million). At the start of November, CDL announced the purchase of a mixed-use development site in Downtown Shanghai for RMB8.94 billion ($1.66 billion) through a 51:49 joint venture with China’s Lianfa Group Co. Closer to home, the group won the collective sale tender for Delfi Orchard at $439 million in May. The 11-storey, freehold strata-titled commercial building was launched for tender on April 18 at a guide price of $438 million. Before the purchase, CDL already owned 84% or 126 of the 150 strata commercial and residential units at Delfi Orchard. As the Singapore property market turns a corner heading into the new year, Kwek emphasises that CDL seeks to continuously raise the bar with quality and innovative offerings. “As a proxy for the Singapore residential market, we are focused on sharpening our position as a market leader.”