City Developments

Singapore's real estate developer, City Developments on 16th Feb also announced it's results. Some key statistics were that the company had a 7.4% gain in revenue thanks to it's hospitality wing while earnings skyrocketed 73.4% due to a divestment of it's assets.

Similarly, this may seem an excellent counter to purchase with it's stellar results and performance! But is it?

If you take a look on the 16th Feb, City Devt opened lower and closed even lowered as compared to the previous day. A drop of $0.04 is not a huge sum but is explainable as the real estate sector in Singapore is very shaky especially with all the new rules of stamp duty and loans. Furthermore, the private property market is experiencing a downturn with prices falling 1 percent in the previous quarter. Thus this may serve as a obstacle with many unsold rooms, which may sound okay since they are not perishables but because the government is starting to sell lands with 99 year leaseholds, every year after TOP makes it harder to sell as it doesn't benefits buyers.

Let's just hope City Devt is able to better handle their sales so as to cope with the housing problems in Singapore. 

Signing off~

Billy