Swire Properties posts 30 per cent jump in first-half underlying profit on higher sales

Swire Properties, one of Hong Kong’s largest property developers, has reported interim earnings that beat analysts’ forecasts, helped by increasing sales and higher margins on luxury real estate sold in the city.

The company’s underlying profit rose 30 per cent to HK$4.6 billion (US$588 million) in the six months ended June, while sales increased 46 per cent from a year earlier to HK$11.5 billion, beating the HK$11.3 billion consensus forecast of analysts polled by Bloomberg. Net profit, including valuation gains, more than doubled to HK$14.8 billion during the period.

Property sales revenue jumped 170 per cent to HK$5.26 billion, due to the handover of pre-sold units at the Alassio development at the Mid Levels.

The luxury property developer believes that demand “remains resilient” in the high-end residential market segment, despite government measures to cool the market and the expectation of a gradual increase in interest rates.

“The demand is strong in Hong Kong and we expect that is going to continue in the second half,” said Guy Bradley, chief executive of Swire Properties.

After selling out all the units of Alassio, Swire’s remaining unsold stock in Hong Kong is the villa project, Whitesands in South Lantau.