Developer Hang Lung waits for signs of spring on mainland

Home prices in Hong Kong could fall this year and the outlook is equally bleak for the mainland property market, Hang Lung Properties chairman Ronnie Chan Chichung said yesterday.

Hong Kong government policies would have a major impact on the market, Chan said, alluding to the series of curbs to check prices as well as an anticipated increase in supply.

On the mainland's real estate market, the developer said winter has set in and there's no indication "when spring will arrive".

The central government's anti-corruption campaign and austerity measures have hit the market, affecting his group's business as about half of its retail centres are targeted at luxury buyers, said Chan.

These policies would, however, help the mainland's broader economic development in the long run, he added.

Chan was speaking to reporters at the company's results briefing yesterday.

Hang Lung Properties reported 14 per cent growth in rental turnover from its mainland property portfolio to HK$3.52 billion, and a 13 per cent increase in operating profit to HK$2.68 billion in the year to December.