New World Development expects investments in China – particularly Greater Bay Area – to deliver double-digit growth, Adrian Cheng says
- The company’s investment in the development zone is the largest among its Hong Kong peers
- Contract sales will see double-digit growth, rental portfolio will see 25 per cent to 30 per cent growth, Cheng says
Hong Kong property company New World Development (NWD) expects its investments in China, particularly the Greater Bay Area development zone, will generate double-digit growth over the next several years.
“It has proven successful … We are guiding our investors that for the next two to three years, our contract sales [from mainland Chinese property] will have double-digit compound annual growth rate, and rental growth will also see a 25 per cent to 30 per cent [jump] in the next five years in China, especially in the Greater Bay Area,” Cheng said.
The company is bullish about the development zone because Beijing wants to develop it into a new financial and business hub to rival San Francisco and Tokyo.
The zone contributed 76 per cent of NWD’s 11.2 billion yuan worth of contract sales in China in the six months to December 2020. And with the government backing it to become an international hub, Cheng said he anticipated it would need services and better quality of life, as young people flowed to cities such as Shenzhen and Guangzhou. This “will create a big potential for New World to grow” there, he added.
