Broker Name: OCBC Investment Research
Date of Report: 18 November 2025
Excerpt from OCBC Investment Research report.
Report Summary
- City Developments Ltd (CDL) is rated HOLD, with a fair value of SGD 7.49. The company faces challenges from weak sales in 3Q25 due to a lack of new residential launches, though recent projects like Zyon Grand saw strong demand.
- CDL is actively replenishing its Singapore landbank, focusing on both private and executive condominium sites, and continues to divest non-core assets to reduce gearing, which remains above its medium-term target.
- Singapore’s housing market is resilient, supported by lower interest rates and strong transaction volumes, while CDL’s investment properties in Singapore maintain high occupancy. However, the China portfolio remains sluggish.
- CDL maintains a leading ESG rating, with a strong commitment to achieving net zero carbon emissions, and is recognized for its sustainability initiatives in the real estate sector.
- Potential catalysts for CDL include stronger-than-expected residential sales and price increases, or the unwinding of property cooling measures; key risks are macroeconomic slowdown, weaker margins, or further policy tightening.
- Financially, CDL reported FY24 revenue of SGD 3.27 billion, with PATMI of SGD 201.3 million. The group’s diverse portfolio includes significant hotel operations, property development, and investment properties across 29 countries.
Above is an excerpt from a report by OCBC Investment Research. Clients of OCBC Investment Research can be the first to access the full report from the OCBC website: https://www.ocbc.com
