SINGAPORE: City Developments Limited (CDL) has made headlines with a remarkable surge in residential sales for the third quarter of 2024, boasting a staggering S$611.1 million in total sales.

This represents an impressive 88% increase compared to the same period last year, largely fueled by the successful launch of Kassia, a 276-unit freehold residential project. The development's popularity is evidenced by the sale of 65% of its units shortly after its July launch.

In Q3 2024, CDL sold a total of 321 residential units, a substantial increase from 183 units sold in Q3 2023, translating into sales revenue of S$325 million, as highlighted by Singapore Business Review.

Apart from the robust residential market, CDL's commercial properties have also shown strength. By September 2024, the company’s office portfolio boasted an impressive committed occupancy rate of 97.4%, driven mainly by high demand at the South Beach development.

Similarly, their retail properties enjoyed a committed occupancy rate of 98.5%, reflecting a strong recovery in the commercial sector as businesses rebound post-pandemic.

However, it's not all smooth sailing for CDL. The hotel segment has experienced a decline, with the Revenue per Available Room (RevPAR) dropping by 2.1% in the first nine months of 2024 compared to the same time in the previous year.

This decline is primarily linked to decreased Average Room Rates (ARR) at its hotels, despite hosting major events such as the popular Taylor Swift concerts and the Formula 1 Singapore Grand Prix, which typically boost hotel occupancy and rates.

As the market continues to evolve, CDL faces the challenge of revitalizing its hotel performance while capitalizing on the strong momentum in residential sales. Could the company pivot its strategy to turn the tides in its hospitality sector? Stay tuned for further updates as the real estate landscape in Singapore continues to shift dramatically!