New World Development lowers sales target by 20pc on cooling measures
Developer's 20 per cent downgrade comes despite plans to launch eight residential projects with 2,805 flats by end of June
New World Development has cut its sales target for this financial year by 20 per cent after the government released a new round of cooling measures in the property market.
It is the second developer to cut its sales forecast, following Sun Hung Kai Properties' announcement last week that it would lower its sales target by 8.5 per cent.
"We previously set our contracted sales target [for the financial year to end-June this year] at HK$14 billion to HK$15 billion. But we decided to cut it to HK$12 billion," said Adrian Cheng Chi-kong, New World's executive director and joint general manager.
"We have achieved more than 50 per cent of our target so far."
Cheng said government's new initiative to soften demand in the property market was "part of the reason" for cutting targets.
"The measures will affect the psychology of flat buyers. It may take two to three months for them to digest the news.
"We saw buyers turn cautious on buying homes and property sales falling after the government introduced a buyer's stamp duty [in late October last year]. The latest measures [released on February 22] are targeting second-home buyers. We would like to be conservative and monitor how home seekers' react to the new measures."