Singapore's CDL Sees Profit Surge on Project Completions

Singapore's City Developments Ltd (CDL) has seen its profit surge in the first half of 2026, thanks to the completion of several projects including the Lumina Grand executive condominium. CDL's attributable profit for the first half of 2026 jumped by 230.7 percent year-on-year to S$301.6 million ($235.76 million), with the company's property development segment seeing revenue more than double year-on-year to S$1.56 billion. This was driven by contributions from the sold-out Lumina Grand project in western Singapore's Bukit Batok area, which was completed in April. The project's strong sales performance was a key contributor to CDL's strong results, with the company's property development business reporting a 121.8 percent year-on-year rise in pre-tax profit to S$338.1 million. Property development accounted for nearly 84 percent of CDL's pre-tax profit during the period and 57 percent of its revenue. However, CDL's sales performance was not uniform across all its projects. The company reported a 61 percent year-on-year drop in new homes sold to 352 units, while the value of new contracts signed declined by 59.5 percent year-on-year to S$892.2 million. This was attributed to a decline in new projects entering the market, with Singapore developers selling 4,154 units in the first six months of 2026, down 9.4 percent from the year-earlier period. Despite this, CDL's hotel business saw a significant turnaround, swinging from a S$84.4 million pre-tax loss in the first half of 2025 to a S$42 million pre-tax profit in the first half of 2026. This was driven by higher revenue and exchange gains from the appreciation of the Singapore dollar. CDL's investment properties segment, however, posted a 62.6 percent year-on-year drop in pre-tax profit to S$28.4 million, primarily due to gains from divestments and the absence of contributions from properties sold in 2025. The company's CEO, Sherman Kwek, stated that CDL is on track to announce the outcome of its long-awaited strategic review by the end of September, which will articulate the company's future strategic direction, capital allocation framework and implementation roadmap. CDL's shares jumped as much as 11.2 percent to S$8.74 in Thursday's morning trading before paring gains and closing up 4.3 percent for the day at S$8.20. ### CDL's Development Pipeline To feed its development pipeline, CDL has secured two Singapore sites through the Government Land Sales programme. In June, CDL teamed with its parent, Hong Leong Group, to win a residential site on Peck Hay Road in the Newton area with an offer of S$542.4 million, overcoming four rival bids. In February, a joint venture between CDL and Woh Hup secured a site in the Tanjong Rhu area for S$709.25 million ($556.9 million), equating to S$1,455 per square foot of accommodation. ### Singapore's Property Market The surge in CDL's profit is a reflection of the overall health of Singapore's property market. Home prices in the city-state increased 1.4 percent in the first half of 2026, compared to a year earlier, after climbing 1.8 percent in the first six months of 2025. However, the market is expected to remain competitive, with fewer new projects entering the market and a decline in new homes sold by developers. ### Conclusion CDL's strong results in the first half of 2026 are a testament to the company's ability to navigate the complex global environment and capitalize on opportunities in the Singapore property market. The company's development pipeline and strategic review are expected to play a key role in shaping its future direction and performance.