$CityDev(C09.SG)

City Developments Limited: Policy Tailwinds Could Unlock the Next Property Cycle

City Developments Limited (CDL) enters the second half of 2026 with improving fundamentals. The group continues to benefit from resilient residential demand, recurring income from investment properties and hotels, and a diversified global portfolio. As interest rates ease, financing costs are expected to moderate, supporting earnings recovery and stronger cash generation over the medium term. Analysts project gradual improvements in profitability through 2027–2028 as project completions accelerate and hospitality earnings remain resilient.

A key catalyst is Singapore’s housing policy recalibration. Extending the Additional Buyer’s Stamp Duty (ABSD) remission timeline provides developers with greater flexibility to launch projects according to market demand rather than construction deadlines, reducing forced selling and preserving margins. Meanwhile, removing the 15-month wait-out period for eligible private homeowners downsizing to public housing improves housing mobility, releasing capital that can eventually flow back into the private residential market.

Technically, CDL remains constructive after establishing higher lows, with improving trading momentum suggesting accumulation. A decisive breakout above major resistance could signal a medium-term trend reversal.

Looking ahead, these policy changes should improve inventory management, enhance pricing discipline and support healthier sector profitability. For patient investors, CDL appears well-positioned to benefit from a more balanced residential market and an improving earnings cycle over the next three to five years.

This article is for informational purposes only and does not constitute financial advice.