Morning Wrap | Strong Sales at The Orie Drive Positive Outlook for Frasers Property and CDL

The Orie, a joint venture between Frasers Property, City Developments Limited (CDL), and Sekisui House, has seen a remarkable response from homebuyers, with 668 units sold on the first day of its launch. This strong sales performance reflects the pent-up demand for new homes in Toa Payoh and the broader Singapore real estate market. The average selling price (ASP) of S$2,704 per square foot (psf) indicates that buyers are willing to pay a premium for well-designed, strategically located developments in mature residential estates.

The success of The Orie has a positive impact on Frasers Property's and CDL's financial projections for 2025. The sales of 668 units at the mentioned ASP would generate approximately S$1.8 billion in revenue for the developers, contributing to their overall financial performance. The high ASP also suggests improved profit margins for the developers, as the units were sold at a premium. Additionally, the upfront payments received from buyers will enhance the cash flow position of both Frasers Property and CDL, allowing them to reinvest in new projects, reduce debt, or distribute higher dividends to shareholders.

The robust sales at The Orie can be attributed to several key factors driving demand for new residential properties in Toa Payoh and Singapore's broader real estate market. These factors include limited land availability and supply, growing population and housing demand, attractive location and convenience, transforming estate and rejuvenation, strong economy and foreign investment, and government initiatives and sustainability. The ongoing transformation and rejuvenation of Toa Payoh, such as the upcoming Toa Payoh Integrated Development, have enhanced the appeal of the estate and increased demand for new residential properties.

The success of The Orie is likely to influence the pricing strategy for future residential launches in Singapore. Developers can leverage the strong take-up rate and ASP for The Orie to price their upcoming projects accordingly, taking into account factors such as location, design, and amenities. As Toa Payoh continues to transform and attract buyers, developers can maintain competitive pricing for future residential launches in Singapore, particularly in established neighborhoods with limited new supply.



In conclusion, the strong sales performance at The Orie has driven a positive outlook for Frasers Property and CDL, with increased revenue, improved profit margins, and enhanced cash flow. The key factors driving demand for new residential properties in Toa Payoh and Singapore's broader real estate market, combined with the success of The Orie, suggest that developers can maintain competitive pricing for future residential launches in Singapore. As Toa Payoh continues to transform and attract buyers, the success of The Orie serves as a validation of the developers' strategy and a positive indicator for the Singapore real estate market.