on technology, managing costs and improving our operations to overcome some of these challenges. The construction order book as at 30 September 2024 stood at approximately S$368 million, with our residential and commercial projects forming 49% and 51% of our portfolio respectively. The Group’s current project pipeline consists of Solitaire on Cecil and Tengah Plantation C5. Sky Eden @ Bedok had its topping out ceremony before Lunar New Year on 27 January 2025. Solitaire on Cecil, a 20-storey office building development comprising restaurants on the first storey with two basement carparks on Cecil Street has completed ground strengthening works and is progressing on to bored piling and foundation phase. Bored piling works for Housing and Development Board’s Tengah Plantation C5 project have been completed with structural works having progressed to fourth and sixth storeys for the more advanced blocks. With Phase 1 of the additions and alterations work to the Grand Hyatt Singapore Hotel having been completed in April 2024 and Phases 2 and 3 both completed in July 2024, we have now moved on to Phase 4. This phase includes, among other improvements, the refurbishment of over 400 rooms, which remains on track for completion in the second quarter of this year. Phase 2 of the new National Skin Centre at Mandalay Road, comprising a five-storey building with basement and Mechanical and Electrical roof obtained TOP in December 2024 and the award of the Certificate of Substantial Completion is anticipated to be in the first quarter of 2025. The TOP date for Punggol Regional Sports Centre has been revised to July 2025 due to additional variation works involving rain screens and football pitch lightings. The Building and Construction Authority (“BCA”) has projected the total construction demand in 2025 to range between S$47 billion and S$53 billion, mainly driven by several large scale projects such as such as Changi Airport Terminal 5 and the expansion of the Marina Bay Sands Integrated Resort, as well as public housing development and upgrading works such as Build-To-Order flats, Cross Island MRT Line contracts, and Tuas Port developments. Over the medium-term, the total construction demand is projected to reach an average of between S$39 billion and S$46 billion per year from 2026 to 2029 due to public sector housing, community educational and health projects and urban rejuvenation works2. We will continue to focus efforts on winning projects in both the private as well as public housing and healthcare sectors. We are confident that our track record in these areas will stand us in good stead to attain new projects. PROPERTY DEVELOPMENT AND INVESTMENTS The property market in 2024 lost some momentum from 2023. For the whole of 2024, prices of private residential projects increased by 3.9% as compared to 6.8% in 2023 and 8.6% in 20223. The effects of increased Additional Buyer’s Stamp Duty (“ABSD”) rates, higher borrowing costs and uncertain economic growth have negatively impacted buyer sentiment. 3,420 completed and uncompleted units were sold in the fourth quarter of 2024 as compared to 1,160 units in the previous quarter, with 6,469 units sold for the whole of 2024 as compared to 6,421 units in 20234. In land scarce Singapore, the demand for property will always remain strong. Furthermore, given Singapore’s attractiveness as an investment haven, with its transparent and robust legal environment, stable government and strategic location, property as an asset class will always be attractive for foreign and local investors. There may, in the near term, be vicissitudes brought about by, among other things, cooling measures or cyclical economic downturns but in the longer term, property will maintain its lustre. While there are no plans for land acquisition in the immediate future, it remains a sector that is of particular interest and importance to the Group. We will continue to look out for opportunities which will provide an attractive return on investment. 2 Building and Construction Authority, “Construction Demand to Remain Strong for 2025”, 23 January 2025. 3 Urban Redevelopment Authority, “Release of 4th Quarter 2024 real estate statistics,” 24 January 2025. 4 Urban Redevelopment Authority, “Release of 4th Quarter 2024 real estate statistics,” 24 January 2025. 13 ANNUAL REPORT 2024 FINANCIAL AND OPERATIONS REVIEW
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