KWEK Leng Beng, chairman of City Developments (CDL), cautioned that further cooling measures could be introduced by the government to control the prices of residential property if prices continue to rise.

Kwek Leng Beng, chairman of City Developments (CDL), cautioned that further cooling measures could be introduced by the government to control the prices of residential property if prices continue to rise. PHOTO: SPH

The property magnate's warning came at the mainboard-listed property heavweight's annual general meeting held by electronic means on April 30, minutes of which were filed with the Singapore Exchange on Monday.

He noted that the residential market has been performing well, but flagged that there may come a time that the government could impose further cooling measures, if property prices continue going up.

He further expressed confidence that the office market will continue to improve and noted that the group's Republic Plaza has been performing better than previously, achieving high occupancies.

The chairman also expressed optimism that the hotel industry would be able to recover some time this year, if not next year, with the resumption of air travel between countries being considered.

CDL group chief executive Sherman Kwek said that he was optimistic about the prospects for the group's residential projects and office properties in Singapore. He noted the total residential units sold in the Singapore market had recovered to a healthy level and that, despite of the pandemic last year, had recorded a sales volume on a par with that in pre-pandemic levels.

He said that there was pent-up demand for private residential properties, especially from Housing Development Board upgraders. There is uncertainty surrounding over whether the government would implement new cooling measures, but he sees the overall residential market as remaining very stable.

He also said that despite the current trend of working from home and the proliferation of co-working spaces, the office continues to be a necessary place of gathering for office goers, and that office buildings will continue to play an important role.

In response to a question on unlocking the value of the hotel assets amid the pandemic, CityDev: C09 +0.94%  said that Millenium & Copthorne Hotels, the property group's hotel arm, can realise its value in several ways; this include improving the assets' operational efficiency, a straight-out divestment and also repurposing of the sites for uses that can yield better returns.

While CDL is "under no pressure" to divest its hotel assets, the group has received unsolicited offers from time to time. This can result in a significant gain on disposal due to the group's generally low book costs, said CDL. It is thus exploring all options to determine which opportunities provide the best value to the group in supporting its strategy for growth, enhancement and transformation as well as capital recycling efforts.

The counter closed 0.94 per cent higher at S$7.50 on Monday, before the minutes were published.

By TAY PECK GEK