CDL shares tumble as developer flags challenging second half

City Developments Limited shares fell sharply on Monday after the developer issued a cautious outlook for the remainder of the year, signalling headwinds in its core business segments. The Singapore-listed property firm attributed the anticipated slowdown to a combination of entrenched inflation and elevated borrowing costs, which it said have prompted buyers and investors to defer purchasing decisions.

The 8% decline in CDL's share price reflects investor concerns about the developer's ability to maintain deal flow and revenue momentum in the coming months. The challenging operating environment has effectively pushed back several transactions that the company had previously expected to complete, the firm indicated.

Higher interest rates have made property financing costlier for end-buyers and investors, while persistent inflation has eroded consumer purchasing power across the region. These macroeconomic headwinds are expected to continue weighing on residential and commercial property markets, potentially extending beyond the second half into subsequent quarters.

CDL, which has significant operations across Singapore, Australia, and other regional markets, joins a growing list of regional developers reassessing growth projections amid volatile economic conditions. The cautionary stance underscores broader market challenges facing the Asia-Pacific property sector as central banks maintain restrictive monetary policy stances.