SHKP may cut sales target by up to 15 per cent as demand for homes weakens
Developer achieved just 35 per cent of its full-year target in first six months
Sun Hung Kai Properties (SHKP), Hong Kong’s largest developer by market capitalisation, said on Friday it may cut its HK$32 billion sales target for the year to June by as much as 15 per cent because global financial turbulence is damaging buyer sentiment.
That comes after Financial Secretary John Tsang Chun-wah insisted in his budget speech on Wednesday there was “no room” to scrap the government’s cooling measures on property prices, with many still finding it difficult to afford a home.
“The firm may cut 10 to 15 per cent of the sales target based on declining transactions in the primary market compared with 2015 due to the impact of external economic factors,” SHKP deputy managing director Victor Lui Ting said. “We will slow down the pace of marketing new projects.”
The developer achieved just HK$11.3 billion in contract sales, or 35 per cent of its full year target in the six months to the end of December.
We will slow down the pace of marketing new projects
It also expects lower sales revenue because of the deferral of sales at its 2,500-unit Grand Yoho project in Yuen Long.
The application for the occupation permit for Grand Yoho had been postponed from June to late in the second half of the year, Lui said.