City Developments Limited (SGX: C09) Stock Outlook 2026: New London Deal, Analyst Upgrades and Q3 2025 Reset

Published: 2 December 2025

City Developments Limited (CDL, SGX: C09) has quietly turned 2025 into a comeback year. As of 1 December 2025, the stock last traded at around S$7.20, after a strong rebound that has lifted year‑to‑date returns to roughly 44%, significantly outperforming the Straits Times Index. ^[1]

On 2 December, the group added fresh momentum with a headline‑grabbing £280 million acquisition of the 706‑room Holiday Inn London – Kensington High Street, while continuing to recycle close to S$1.9 billion of non‑core assets. ^[2]

At the same time, analysts have been steadily raising price targets on CityDev, with current one‑year targets clustering around S$8–S$9 per share – implying double‑digit upside from current levels. ^[3]

Below is a deep dive into the latest news, Q3 2025 numbers, and how the market now values CDL heading into 2026.

Latest News: Big London Hotel Acquisition Caps a Busy 2025

On 2 December 2025, CDL announced it has completed the acquisition of Holiday Inn London – Kensington High Street for £280 million (about S$480 million), via wholly‑owned subsidiary Copthorne Hotel Holdings. ^[4]

Key points from the deal:

Ultra‑prime freehold site of 6,356 sqm in the Royal Borough of Kensington and Chelsea, one of London’s wealthiest areas. ^[5]
706‑room hotel, two minutes’ walk from Kensington High Street and close to major cultural and retail landmarks such as Kensington Palace, Hyde Park, Harrods and the Museum Quarter. ^[6]
The property has delivered occupancy above 97% for the nine months to September 2025 and generated over £39 million in revenue in the past 12 months. ^[7]
CDL expects a running yield of over 6%, with additional long‑term redevelopment potential on the sizeable site. ^[8]

This acquisition follows a year where CDL has sold down non‑core assets and then selectively recycled capital into rare, higher‑quality opportunities:

Sale of Bespoke Hotel Osaka Shinsaibashi in Japan for JPY 14 billion, marking the fourth major recycling transaction in 2025. ^[9]
Divestment of the 1250 Lakeside multifamily residential asset in the US for US$143.5 million. ^[10]
Earlier disposal of a 50.1% stake in the South Beach mixed‑use development in Singapore, delivering an estimated S$465 million disposal gain. ^[11]

CDL now estimates that contracted divestments have reached about S$1.9 billion year‑to‑date, while 2025 acquisitions total around S$1.7 billion, largely for Singapore Government Land Sales (GLS) residential sites plus this London hotel. ^[12]

For investors, the message is clear: divestments are still outpacing acquisitions, but management is willing to deploy capital into what it sees as ultra‑prime, yield‑accretive assets.

Share Price Snapshot: 2025 Rally, But Still a Discount to Asset Value

CDL’s share price story in 2025 has been a classic “from ignored to in‑demand” narrative:

As of 1 December 2025, CityDev closed at around S$7.20 per share. ^[13]
Yahoo Finance data shows a year‑to‑date total return of about 43–44%, markedly above the STI. ^[14]
Yet, The Edge Singapore notes that even after the rally, CDL still trades at a discount to its book NAV of about S$10.10 and a revalued NAV of S$17.48 per share. ^[15]

Short‑term technical models such as StockInvest peg a “fair opening price” around S$7.21 for 2 December 2025, implying a market that is consolidating rather than overheating after the run‑up. ^[16]

Q3 2025: Softer Quarter, Stronger Year

CDL’s Q3 2025 operational update initially spooked some investors because headline Singapore property sales slowed sharply year‑on‑year:

In Q3 2025, CDL and its joint‑venture associates sold 88 units with a total sales value of S$313.2 million, down from 321 units and S$611.1 million in Q3 2024 – a 48.7% drop in sales value amid fewer new launches. ^[17]

This prompted short‑term share price weakness when the operational update first hit the market. ^[18]

However, the nine‑month picture looks quite different:

For the first nine months of 2025, CDL sold 990 units in Singapore with a total sales value of about S$2.5 billion, up sharply from the same period a year earlier. Key contributors include The Orie and other mass‑market projects. ^[19]
Portfolio‑wide, CDL continues to report strong occupancy rates across its investment properties and growing contributions from living‑sector assets in the UK, Japan and Australia. ^[20]

In other words, Q3 2025 was more a timing issue (limited launch pipeline in that quarter) than a collapse in demand.

1H 2025 Financials: Revenue Growth, FX Drag and Dividends

CDL’s 1H 2025 results, released in August, provide the most recent full financial snapshot:

Revenue: S$1.69 billion, up 8% year‑on‑year from S$1.56 billion. ^[21]
PATMI (net profit): S$91.2 million, up 3.9% year‑on‑year, but held back by a large foreign‑exchange loss. ^[22]
The property development segment drove performance, with 24.3% revenue growth, supported by projects like The Myst, Norwood Grand, Union Square Residences, CanningHill Piers, Tembusu Grand, The Orie and Kassia. ^[23]
Over S$1.5 billion of contracted divestments had been secured year‑to‑date by mid‑August 2025. ^[24]

A big swing factor was currency movement:

CDL reported about S$63.1 million in net FX losses, mainly from USD‑denominated intercompany loans used to fund earlier US hotel acquisitions. Without this FX hit, management says PATMI would have more than tripled on a like‑for‑like basis. ^[25]

The group ended 1H 2025 with:

S$1.8 billion in cash and around S$3.5 billion in cash plus undrawn committed facilities.
A net gearing ratio around 70% after factoring in investment property fair values.
A slightly lower average borrowing cost of about 4.0%, down from 4.4% in FY 2024, reflecting rate cuts in some of CDL’s key markets. ^[26]

CDL declared a special interim dividend of S$0.03 per share for 1H 2025, signalling confidence despite FX and hotel‑segment headwinds. ^[27]

Residential Pipeline: Singapore Still the Core Growth Engine

Singapore residential remains the bedrock of CDL’s growth story.

In 1H 2025:

CDL and its JV partners sold 903 units in Singapore, including executive condominiums (ECs), with a sales value of about S$2.2 billion, nearly double the 1H 2024 figure (588 units, S$1.2 billion). ^[28]

The group continues to expand its landbank and launch pipeline:

Successful tenders for three GLS sites at Lakeside Drive and two EC sites at Woodlands Drive 17 and Senja Close, adding roughly 2,260 units to its future launch pipeline. ^[29]
Planned launch of Zyon Grand, a 706‑unit integrated project on Zion Road with direct MRT linkage, targeted for Q4 2025. ^[30]

At the macro level, Singapore’s Q3 2025 GDP growth of 4.2% year‑on‑year and upgraded full‑year forecast of about 4% provide a supportive backdrop for medium‑term housing demand, even as cooling measures temper speculative activity. ^[31]

Hospitality, PRS and “Living” Assets: A Global Income Platform

Beyond pure development profits, CDL has been building a recurring income platform across:

Hotels in Singapore, the UK, Europe, US and Asia
Private rented sector (PRS) assets in the UK, Japan and Australia
Purpose‑built student accommodation (PBSA) in the UK

Highlights from mid‑2025:

Hotel RevPAR (revenue per available room) in 1H 2025 edged up to about S$155.6, supported by acquisitions in Australasia and Europe, although the hotel segment still reported a pre‑tax loss due to FX and inflationary costs. ^[32]
PRS occupancy: around 95% in Japan, 80%+ at key UK assets such as The Junction in Leeds, with more developments on the way in Manchester, London and Melbourne. ^[33]
PBSA occupancy: about 90% across 2,368 beds in the UK for the 2024/2025 academic year. ^[34]

The London Holiday Inn acquisition effectively scales up this living and hospitality platform in one of the world’s most supply‑constrained prime hotel markets, giving CDL over 3,000 hotel rooms in Central London alone. ^[35]

Capital Recycling and Balance Sheet: Monetisation Drive Continues

A major driver behind the rerating in CDL’s share price has been its aggressive monetisation programme.

According to The Edge Singapore and company disclosures:

CDL has executed multiple large sales in 2025 – including South Beach, Bespoke Hotel Osaka, 1250 Lakeside in the US and Piccadilly Galleria in Singapore – and is in advanced discussions over the sale of Quayside Isle on Sentosa. ^[36]
By late November, analysts estimated CDL had achieved close to S$1.9 billion in non‑core divestments, with potential upside from further UK landbank disposals such as the former Stag Brewery site in Mortlake. ^[37]

From a funding perspective, RHB notes that:

Only about 43% of CDL’s debt is on fixed rates, and roughly 73% of its debt is due for refinancing by 2027, making the group a net beneficiary of a lower‑rate environment as global policy rates ease. ^[38]

The combination of monetisation plus falling funding costs is central to many of the recent upgrades.

What Are Analysts Saying About CityDev Stock Now?

Analyst sentiment has visibly shifted in CDL’s favour through 2025.

Recent data points include:

Consensus target price of about S$8.66 (Beansprout, based on SGX data), implying about 20% upside from S$7.20. ^[39]
TipRanks reports an average target of S$8.58 (range S$8.22–S$9.03), which suggests around 19% upside. ^[40]
POEMS research assigns an “ACCUMULATE” rating with a S$8.34 target. ^[41]
Fintel shows an average one‑year target of about S$7.83, with a wide range from S$4.95 to S$11.55. ^[42]
Simply Wall St pegs CDL’s fair value around S$6.60, suggesting the stock is trading close to intrinsic value on its own cash‑flow model, while noting a consensus analyst target near S$7.50. ^[43]
Independent research site Minichart rates CDL a “HOLD” with fair value at S$7.49, citing challenges from the softer Q3 quarter but balanced by a strong pipeline and monetisation. ^[44]

Broker‑specific highlights:

RHB upgraded CDL from Neutral to Buy, lifting its target price to S$8.50 from S$4.90, and emphasising strong Singapore residential momentum, ongoing asset divestments and leverage to lower interest rates. ^[45]
Citi reportedly has one of the highest targets at S$9.01, while HSBC has gone as high as S$11, according to The Edge and SGinvestors. ^[46]
JP Morgan is more conservative but still positive, with a December 2026 target of S$8.20, based on a 35% discount to its revalued NAV estimate of S$12.65 per share. ^[47]

In summary, the consensus message is:

CDL is no longer deeply distressed after the 2024 overhang,
The stock still trades at a meaningful discount to asset value,
Upside estimates generally sit in the mid‑teens to low‑20s percent range, with a handful of notably more bullish outliers.

Key Drivers for CDL Stock Into 2026

1. Singapore Residential Cycle

CDL’s near‑term earnings will be heavily influenced by:

Launch timing and pricing for Zyon Grand and other pipeline projects. ^[48]
The pace of sales at existing projects such as The Orie and Kassia. ^[49]
Any additional property cooling measures or macro shocks that could affect affordability.

The upgraded national GDP outlook and still‑healthy employment backdrop favour steady end‑user demand, even if speculative buying remains subdued. ^[50]

2. Interest Rates and Refinancing

Given that more than half of CDL’s debt is floating and a large portion is due by 2027, rate cuts could provide:

Lower interest expense,
Higher interest coverage ratios, and
Potentially higher valuations for its income‑producing assets. ^[51]

The flip side is that a renewed spike in global yields would hurt both financing costs and cap rates.

3. Capital Recycling and NAV Unlock

The market has clearly rewarded execution on asset monetisation. Continued progress on:

Quayside Isle,
Remaining UK development and landbank assets (e.g., former Stag Brewery, Shoreditch House), and
Any further non‑core hotel disposals

could help narrow CDL’s discount to NAV and support further target price upgrades. ^[52]

4. Hospitality and Living‑Sector Performance

The London Holiday Inn deal adds both yield and optionality:

In the near term, a stabilised asset yielding above 6% in a core global city. ^[53]
In the longer term, a redevelopment‑ready, ultra‑prime freehold site adjacent to CDL’s existing Copthorne Tara hotel, giving the group unusual clustering scale in Kensington. ^[54]

The performance of CDL’s broader hotel and PRS portfolio will also matter, especially in markets such as the UK, US and Japan where demand is more cyclical. ^[55]

Main Risks to Watch

Despite the upbeat tone of recent reports, CityDev is not a risk‑free story:

Property‑market risk: A sharp downturn in Singapore housing, new cooling measures, or a broader regional slowdown would hit both earnings and valuation. ^[56]
Execution risk: Delays in launches, construction or divestments could slow capital recycling and push up leverage. ^[57]
FX and overseas exposure: CDL’s sizeable US, UK, Europe and Japan footprint means profits and balance sheet values are sensitive to currency swings – as highlighted by the big FX loss in 1H 2025. ^[58]
Interest‑rate volatility: While falling rates are a tailwind, any renewed rise in global bond yields would hurt both borrowing costs and property valuations. ^[59]

Bottom Line: How the Market Sees CDL on 2 December 2025

Pulling it all together:

Price: Around S$7.20 per share, up roughly 40–45% year‑to‑date. ^[60]
Fundamentals: 1H 2025 showed solid revenue growth and strong residential demand, tempered by FX losses and hotel‑segment softness. Q3 looked weak on paper but masks a robust year‑to‑date sales performance. ^[61]
Strategy: CDL has delivered on capital recycling, executing nearly S$1.9 billion in divestments while selectively adding prime assets – capped by the Holiday Inn Kensington deal. ^[62]
Valuation: Consensus one‑year price targets around S$8.3–S$8.7 imply mid‑teens to low‑20s upside, with some houses going above S$9 and even S$11. The stock still trades at a clear discount to book and revalued NAV. ^[63]

For investors tracking Singapore property stocks and global hospitality plays, City Developments has transitioned from “problem child” to recovery and rerating story, powered by a mix of asset sales, disciplined capital allocation and a deeper London footprint.