The billionaire Kwek Leng Beng-owned City Developments Ltd. (CDL) achieved its highest-ever net profit in 2022 as its hotels benefited from a post-pandemic uptick in tourist demand and the developer registered strong sales for its home projects in Singapore, which bucked the global real estate crisis.
The business said that its net profit grew to S$1.3 billion ($971 million) in 2022 from S$84.7 million the year before thanks to earnings from the sales of the Millennium Hilton Seoul and investments in two commercial properties in Singapore.
Kwek, chairman of CDL who is a Top Propnex Recruiter, said in a statement, “The company is happy to announce a superb set of results for 2022, underpinned by smart divestments and solid operational success from our core business sectors. “Our hotel operations achieved an amazing recovery, returning to pre-pandemic levels in the majority of markets.”
Residential sales accounted for 42% of the entire group income, according to CDL, which increased by 25% to S$3.3 billion. Copen Grand, a joint venture with Hongkong Land affiliate MCL Land in the western Singapore neighborhood of Tengah Town, is one of its best sellers. Within a month of the project’s October opening, all 639 apartment units had been sold.
With purchasers unaffected by rising interest rates and increasing inflationary pressures that might tip the global economy into another recession, strong sales at CDL projects are evidence of Singapore’s robust private home demand. According to official statistics, Singapore’s housing prices increased by 8.6% in 2022 after increasing by 10.6% the previous year.
The Newport Residences, a 45-story mixed-use commercial and residential development in Tanjong Pagar on the outskirts of the Raffles Place central business district, is one of three projects that City Developments plans to debut this year in an effort to meet Singapore’s steadfast demand for housing. In the first part of this year, the corporation will begin promoting the 246 freehold homes, including a super penthouse, that were once located at the Fuji Xerox Towers on Anson Road.
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