Hong Kong home sales lift Midland net 621pc
Midland Holdings, a major Hong Kong property brokerage, yesterday posted a more than sevenfold increase in interim profit - its biggest ever for a half-year - thanks to rising demand for residential properties in the city.
Housing transaction volume increased 35 per cent in the first half, a product of low interest rates and a resurgence of confidence in Hong Kong's economy.
Midland's net profit soared about 621 per cent to HK$230 million from HK$31.9 million a year earlier.
Sales rose 67 per cent to HK$1.5 billion as brokerage income from residential properties climbed 73 per cent.
Earnings per share surged 623 per cent to 31.44 cents.
Sales in the residential property division accounted for 87 per cent of total revenue, growing 73 per cent to HK$1.33 billion.
Many residents switched from renting to owning their homes as the unemployment rate came down and salaries rose along with rental rates, the company said.
In addition, property sales were stimulated by a government programme to reduce the stamp duty for homes valued at HK$1 million to HK$2 million.
Operating profit in the segment increased more than 52 times to HK$219 million.
Sales in industrial and commercial property rose 48 per cent to HK$193.8 million and operating profit grew 36 per cent to HK$37.9 million.
Operating profit in the property leasing division jumped 116 per cent to HK$26 million.
