Steady economic growth and strong market demand will lead to continued growth in the property market, resulting in a price increase of about 10 per cent this year, Sun Hung Kai Properties chairman and chief executive Walter Kwok Ping-sheung says. His forecast is much more conservative than many estate agents' projections of about 20 per cent growth for the year. Mr Kwok said rising numbers of Hong Kong returnees and migrants from China would fuel population growth, and steady economic growth meant more consumers could buy their own homes. The imbalance between supply and demand and low mortgage interest rates would contribute to creating a buoyant property market, he was quoted as saying in the group's latest quarterly publication. Mr Kwok said the company expected to complete 4.9 million square feet of property in the year to June 30, and 6.3 million sq ft next year. Of the 4.9 million sq ft due for completion this year, about 4.4 million sq ft are for sale. The property scheduled for completion next year included about 4.4 million sq ft for sale, he said. The group's new projects to go on sale soon include the 350-unit Parkside Villa in Yuen Long and a 14-unit luxury project in Tung Shan Terrace in east Mid-Levels. Mr Kwok said about three million sq ft of investment property would be built during the next three years for rental. He said the group would continue to seek opportunities to invest in Hong Kong's infrastructure projects but such investments would not exceed 10 per cent of the group's assets. He said its projects in Beijing, Shanghai and Guangzhou were progressing smoothly and it would make further investments in China, but that these, too, would not exceed 10 per cent of assets.
