CDL warns of potential oversupply of home units

SINGAPORE: City Developments (CDL) has warned of a potential oversupply of home units in Singapore.

In a statement accompanying its quarterly earnings, CDL said it is "cognisant that between 2014 and 2015, there could be some oversupply with more residential units being completed."

However, the group said the fear could be unwarranted if the world economy turns around by that time and the majority of the completed units are owner—occupied.

CDL also said it hopes that government—imposed policies to cool property prices will be lifted in due course.

Three rounds of cooling measures in the last two years have included the Sellers’ Stamp Duty (introduced in 2010), the Additional Buyers’ Stamp Duty (December 2011) and a 35—year cap on home loan tenures (October 2012).

CDL posted a 1.8 per cent rise in net profit to S$134.5 million for the three months to September 30, 2012, on a 3.4 per cent gain in revenue to S$832.9 million.

— CNA/lp