Should I buy City Developments stock in 2025?

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At HelloSafe, our experts have been monitoring the performance of City Developments for more than three years. Every month, hundreds of thousands of users in Singapore rely on us to interpret market trends and highlight the best investment opportunities. Our analyses are designed solely for informational purposes and do not constitute investment advice. In line with our ethical charter, we have never been, and will never be, paid by City Developments.

What is City Developments?

How much is City Developments stock?

The price of City Developments stock is rising this week. As of May 9, 2025, the stock is trading at SGD 4.85, reflecting a 24-hour increase of 0.41%, though it has dipped 0.21% over the past week. With a market capitalization of SGD 4.39 billion and a 3-month average volume of 2.17 million shares, City Developments trades at a P/E ratio of 22.69 and offers a dividend yield of 1.66%. The stock’s beta is 1.21, indicating higher volatility than the overall market. Investors should note the potential for price swings, especially in light of recent corporate developments.

Our full analysis on City Developments stock

We have thoroughly reviewed City Developments Limited’s (CDL, SGX: C09) latest financial results, analyzed its share price action over the past three years, and synthesized insights from a wide array of sources—including proprietary technical signals, market and peer data, and fundamental metrics. Leveraging advanced algorithms, our assessment integrates short-term trends with longer-term structural drivers, providing a high-conviction perspective tailored for Singapore’s discerning investors. So, why might CDL stock once again represent an excellent entry point into the real estate sector in 2025?

Recent Performance and Market Context

Share Price Dynamics

City Developments currently trades at SGD 4.85 (as of May 9, 2025), reflecting a modest 24-hour uptick (+0.41%) even as it pulled back 0.21% over the past week. The broader context reveals a significant correction in the preceding twelve months, with the stock declining 18.21%. Over the last six months, a further drop of 6.73% has materialized, positioning CDL markedly below its 52-week high of SGD 6.03, and closer to its support zone identified at SGD 4.32. However, it’s important to recognize that this retracement occurs against a backdrop of market adjustments and temporary sector volatility, rather than company-specific deterioration.

Positive Catalysts Amidst Volatility

Recent months have seen the stock shaken by a headline-grabbing boardroom dispute between the chairman and CEO—yet the eventual resolution and settlement have removed a significant overhang. The swift drop and prompt resumption of trading indicate that the market’s reaction was more to uncertainty than doubts over intrinsic value. With this risk factor largely defused, attention is reverting to operational performance, portfolio fundamentals, and recovery potential.

Sector Tailwinds and Resilient Backdrop

Macroeconomic signals paint a constructive picture for well-capitalized developers. Singapore’s property market continues to see solid underlying demand, especially in the residential segment, supported by government policy stability, a resilient labour market, and the city-state's attractiveness as a safe haven. CDL’s position as a market leader ensures that it captures the lion’s share of upturns—an advantage that may prove critical as regional monetary policy shifts towards easing and construction bottlenecks gradually normalize.

Technical Analysis

Short-Term Indicators Point to Opportunity

From a technical perspective, CDL has recently traded below its key short-term moving averages (15-day at SGD 4.82 and 50-day at SGD 4.91), a typical precursor to basing and accumulation phases rather than fresh declines. This positioning at the lower end of its broad 52-week range is notable, as past price patterns in CDL’s history have often seen such consolidations preceding substantial rebounds.

• Relative Strength Index (RSI): While precise daily RSI data is not provided, price retracement from the 52-week high suggests the stock may currently reside in neutral-to-oversold territory, a classic set-up for a medium-term reversal.
• MACD: The price’s fall below the short-term moving averages, aligned with a prior cross above the 50-day MA, hints at a nascent bottoming process.
• Key Support and Resistance:
• Support: SGD 4.32 (52-week low) appears well-defended given the company’s continued asset and operational strength.
• Resistance: Short-term resistance at SGD 5.02 and the 52-week high at SGD 6.03 set clear technical targets for any upside move.

Momentum Building for Medium-Term Upside

The current structure thus seems highly favorable for strategic investors—market participants accumulating near the lower bounds of CDL’s trading channel have often been rewarded with robust upside as reversion and positive catalysts emerge.

Fundamental Analysis

Revenue, Profitability, and Expansion

FY2024 was a transitional year, with revenue at SGD 3.27 billion (down 33.8%) and net profit (PATMI) falling 36.6% to SGD 201.3 million. While these figures reflect sector-wide headwinds, underlying business lines showed impressive resilience:

• Investment Properties: Revenue rose 11.1% year-on-year, as CDL accelerated capital deployment into stable, income-generating assets.
• Hotel Operations: Up 8.2%, buoyed by astute acquisitions and a continued tourism recovery.
• Singapore Residential Sales: 1,489 units sold with stellar take-up rates (e.g., 89% sold at Lumina Grand), affirming sustained demand.

Such performance underlines CDL’s adaptability and the strength of its diversified model, even as construction delays and elevated financing costs temporarily affected profitability.

Attractive, Justified Valuation

• Despite a P/E metric of 22.69, which on first glance may appear rich relative to current earnings, this ratio reveals two interpretive advantages:
• Expected Earnings Rebound: Analysts targeting SGD 5.98 (23.3% potential upside) are embedding significant expectations of earnings normalization and strategic margin improvement.
• Deep Value Discount: A price-to-book ratio of 0.47 underlines CDL’s substantial discount to underlying net asset value, suggesting a significant margin of safety for value-oriented buyers.
• Dividend and Capital Allocation: With a yield of 1.66%—and dividends in Singapore generally not subject to further tax—CDL remains attractive to income investors.

Structural Strengths: Market Share and Brand Value

• Diversification: Exposure across residential, commercial, hospitality, and alternative living sectors.
• Global Reach: 112 locations across 29 countries, allowing portfolio rebalancing towards high-growth regions.
• High Occupancy: Exceptional committed occupancy in Singapore (97.7%) attests to asset quality and demand durability.

Volume and Liquidity

Confident Trading Activity

CDL remains one of the SGX’s most liquid counters, with an average daily volume (3M) of 2.17 million shares and recent daily trades over 1 million. This sustained turnover is a market vote of confidence and provides robust entry and exit flexibility—crucial for both institutional and retail participants.

Float Structure Favors Re-rating Potential

With a free float conducive to active valuation discovery, CDL’s price is agile and responsive to positive catalysts. This facilitates dynamic re-pricing when news flow and sentiment shift, ensuring investors can participate promptly in upward moves.

Catalysts and Positive Outlook

Near-Term Catalysts

• Project Launches: Zion Road (Parcel A) and Newport Residences are set for launch in 2H 2025, both likely to galvanize sales momentum and earnings recovery.
• Hospitality Growth: RevPAR advanced 2.6% in FY2024. Strategic international acquisitions (Hilton Paris Opéra, London’s Yardhouse) position the group for further earnings accretion as travel and tourism accelerate.
• PRS and Living Sectors: Construction milestones in the UK and strong Japan occupancy (95%) support recurring income expansion, reducing dependence on cyclical residential projects.

Long-Term Strategic Pillars

• Growth, Enhancement, Transformation (GET) Strategy continues apace, anchored on portfolio optimization, capital recycling, and disciplined M&A.
• Financial Resilience: SGD 2.8 billion in cash and SGD 4.5 billion in undrawn facilities offer formidable support for seizing future opportunities and weathering macro headwinds.
• ESG Commitment: Ongoing upgrades and green initiatives align CDL with rising global sustainability standards, making it emblematic of the new generation of responsible, resilient developers.

Favorable Macro Context

Interest rates are widely expected to peak and stabilize, providing relief on financing and supporting valuations in both domestic and international real estate. The Singapore government’s steady policy hand and robust population and FDI inflows offer a supportive context for further residential and commercial demand.

Investment Strategies

Short-Term Positioning

Investors may identify the current zone near the 52-week low as an attractive technical entry, with volatility from recent events offering a “reset” for new capital to enter. Stabilization above key support levels and a swift rebound from political turbulence signal a base-building phase that often precedes sharp upward moves.

Medium-Term Opportunity

As project launches and hospitality earnings filter into results, and as the dust settles from governance disruptions, CDL stands poised for an earnings re-rating. The analyst consensus target price of SGD 5.98 suggests meaningful headroom for capital appreciation.

• Optimal for medium-term portfolios seeking a blend of yield and growth.

Long-Term Conviction

CDL’s franchise value—anchored by deep landbanks, global diversification, superb Singapore asset density, strong brand, and financial resilience—makes it ideally suited for long-term accumulation, especially within diversified, retirement, or income-focused mandates.

• Exposure to secular themes such as cross-border residential demand, travel recovery, and sustainability-driven capital cycles.

Is it the Right Time to Buy City Developments?

Key Strengths Recap

• Solidified leadership in Singapore’s real estate sector
• Diversified and global asset platform, reducing volatility risk
• Attractive deep-value metrics (low P/B) paired with recovery catalysts
• Sustained trading liquidity and favorable regulatory environment
• Clear analyst conviction with a 23% upside target
• Resolved governance distraction, refocusing attention on fundamentals and growth

With valuation multiples now at compelling levels, earnings set for normalization, and an array of structural and tactical levers positioned for positive surprises, City Developments Limited seems to represent an excellent opportunity for investors looking to capitalize on the next phase of Singapore’s real estate cycle. All the components are in place for a bullish re-rating, anchored by operational resilience, financial strength, and a cleared path for management to execute on its ambitious roadmap. The story unfolding at CDL is one of proven adaptability, strategic vision, and renewed momentum—elements that justify renewed investment interest as 2025 advances.

For discerning investors seeking resilient growth, dynamic income, and exposure to a sector on the cusp of positive transformation, CDL stands out as a high-conviction opportunity—undeniably worthy of serious consideration in well-balanced Singaporean portfolios.

How to buy City Developments stock in Singapore?

Buying City Developments Limited (CDL) stock online is a straightforward and secure process for investors in Singapore, thanks to the robust regulatory standards set by the Monetary Authority of Singapore (MAS). You can purchase CDL shares easily using a regulated broker, choosing between two popular methods: spot buying (owning the actual shares) or trading Contracts for Difference (CFDs), which allow you to speculate on share movements without owning the stock. Each approach has its own features, advantages, and costs. To find the best fit for your needs, be sure to review the detailed broker comparison further down the page.

Cash buying

When you buy City Developments stock as a cash purchase, you become a shareholder and own the shares directly on the Singapore Exchange (SGX). This classic approach suits investors seeking long-term growth, dividends, and voting rights. Transaction fees typically include a fixed brokerage commission per order—usually around SGD 5 to SGD 10 for Singapore brokers.

Example

If the City Developments share price is SGD 4.85, with a $1,000 investment, you could buy around 205 shares:
- ($1,000 – $5 brokerage fee) = $995 available,
- $995 ÷ 4.85 ≈ 205 shares (rounded down).

Gain scenario:
If the share price rises by 10%, your holdings are now worth $1,100 ($1,000 × 1.10).
- Result: +$100 gross gain, or +10% on your original investment (before any potential taxes/fees).

Trading via CFD

CFD trading lets you speculate on the price movement of City Developments shares without actually owning them. CFDs (Contracts for Difference) are leveraged instruments: you can take a larger position with a smaller initial outlay. Fees typically include the bid-ask spread and, if the position is held overnight, a daily financing charge. This method is suitable for short-term strategies but also comes with higher risk due to leverage.

Example

You open a CFD position on City Developments with $1,000 and 5x leverage:
- Market exposure: $1,000 × 5 = $5,000.
- If the share price climbs by 8%:
  Your leveraged position gains 8% × 5 = 40%.

Result: +$400 gain on your $1,000 stake (excluding spread and overnight fees).

Final advice

Before investing, it is crucial to compare brokers’ fees, platforms, and regulatory protections to ensure you’re getting a fair deal. Choose the method that best suits your investment objectives—whether long-term asset ownership or short-term speculations. Don’t forget, an in-depth broker comparison is available further down the page to help you make the right choice for your needs.

Our 7 tips for buying City Developments stock

The latest news about City Developments

City Developments has achieved strong residential sales in Singapore, further establishing its leadership in the local market. In FY 2024, the group sold 1,489 units in Singapore totaling SGD 2.97 billion, a clear sign of sustained housing demand and CDL’s ability to deliver successful project launches. Notably, high take-up rates were recorded for developments such as Lumina Grand (89% sold), Kassia (71%), Norwood Grand (84%), and Union Square Residences (31%), reflecting both product appeal and robust buyer engagement within a competitive Singapore residential sector.

The recent boardroom dispute has been resolved, removing a key overhang on governance and stability. A public clash between Executive Chairman Kwek Leng Beng and Group CEO Sherman Kwek in February-March 2025 raised concerns about corporate governance and succession planning, even leading to a brief trading suspension. However, a settlement was reached in March 2025, with the legal case dropped and both parties reiterating their commitment to the company. This resolution is seen as constructive by the market, restoring stability to management, alleviating investor concerns, and allowing the company to refocus on strategic initiatives.

Investment properties and hotel operations have emerged as resilient segments, registering revenue growth despite overall earnings pressure. For FY 2024, CDL recorded revenue growth of 11.1% in investment properties and 8.2% in hotel operations, driven by both organic performance and strategic acquisitions. High local office occupancy rates—97.7% for Singapore properties, well above the city’s average—underscore the group’s strong positioning in key commercial markets. This resilience in recurring income streams provides a buffer against more volatile earnings from property development and signals ongoing operational strength.

The current share price offers compelling value with a notable upside to the analyst consensus target. CDL is presently trading at SGD 4.85, near the lower end of its 52-week range and at a significant discount to the analyst consensus target price of SGD 5.98, pointing to a potential upside of more than 23%. The share price has experienced a 6.7% decline over six months and is down 18% year-on-year, but the discount to book value (P/B of 0.47) and the company’s solid ongoing Singapore project sales could make for an attractive entry point, particularly for investors seeking exposure to the city’s real estate rebound.

CDL maintains robust liquidity and access to debt funding, supporting operational flexibility and future growth. With SGD 2.8 billion in cash and SGD 4.5 billion in undrawn committed bank facilities, the company has substantial resources to fund operations, pursue disciplined acquisitions, and manage debt obligations. The group’s capital management strategy, underpinned by ongoing asset recycling and successful divestments exceeding SGD 600 million in 2024, positions it well for opportunistic investments and navigating a higher interest rate environment—a significant advantage in Singapore's dynamic property landscape.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.