Cheung Kong to hasten flats sales

PUBLISHED : Friday, 19 May, 2006, 12:00am
UPDATED : Friday, 19 May, 2006, 12:00am
 

Cheung Kong (Holdings) plans to sell 3,000 flats in the second half of this year in the hope of making up a potential shortfall in its sales target for the year, according to a company executive.


The developer has sold just 1,000 flats this year, 25 per cent of its planned sale of 4,000 units.


'We have made property sales of $3 billion so far,' executive director Justin Chiu Kwok-hung said. 'This compares with our full-year target of between $9 billion and $12 billion.'


Earlier this year, Mr Chiu said the company had hoped to achieve a sales target of $16 billion. It earned $22 billion from the sale of 4,000 flats last year.


He said last year's buoyant results had been helped by the sale of luxury units, including more than 250 flats at the 376-unit Legend development in Tai Hang.


Mr Chiu said property sales were not expected to be as robust as last year since most apartments were scheduled for mass sales pitched at first-time buyers.


'The value of each flat is much lower than the Legend units,' he said.


Cheung Kong is among big developers in Hong Kong facing a potential shortfall, with many new project launches on hold until uncertainty lifts over interest rate increases.


Mr Chiu said the company would start selling the remaining units at the Legend in July.


The 23 units that do not have sea views will be sold at $13,000 to $16,000 per square foot. The price for the more than 70 units facing the Victoria Harbour has not been finalised yet.


The penthouses are due to be sold next year.


In the second half, Cheung Kong will sell Metro Town phase two in Tiu Keng Leng, which comprises 2,096 flats. Other projects to be sold include one in Tin Shui Wai and one in Ma On Shan.


Mr Chiu said he was confident the firm would achieve its sales target this year and had no plans to cut prices for the unsold units, citing the positive market outlook.


Deputy chairman Victor Li Tzar-kuoi also said the company was optimistic about the market.


'Taking into account the limited [flats] supply, the growing gross domestic product and rising salaries, the prospects are good,' he said yesterday.


Share

Send to a friend

To forward this article using your default email client (e.g. Outlook), click here.

Cheung Kong to hasten flats sales

Enter multiple addresses separated by commas(,)

For unlimited access to:

SCMP.com SCMP Tablet Edition SCMP Mobile Edition 10-year news archive