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Hong Kong property
Business

Hong Kong developer New World to tap improved sentiment by bringing property launches forward after posting interim loss

  • Company hopes to leverage positive sentiment unleashed by the removal of Hong Kong’s property curbs, CEO Adrian Cheng says
  • NWD announces an interim dividend payout of HK$0.20 per share, 56.5 per cent below last year’s HK$0.46 per share

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The State Theatre in the North Point area is seen in this file photo from October 2020. Phase one of NWD’s State Theatre project comprising 400 units had been scheduled for sale in the second half of this year, but will now be offered for sale within the next four months. Photo: Winson Wong
Salina Li
New World Development (NWD), the conglomerate owned by one of Hong Kong’s wealthiest families, plans to launch 2,500 units ahead of schedule in a move aimed at capturing the improved sentiment unleashed by the withdrawal of all property curbs in Hong Kong.
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The company unveiled the plan on Thursday after it reported that its profit attributable to shareholders arising from continued operations for the six months ending on December 31 fell 12.8 per cent to HK$502 million (US$64 million). Its shares slipped 2.1 per cent to HK$9.87 on Thursday, bringing its loss so far this year to 18.6 per cent.

“As the financial secretary has announced the lifting of property curbs, and the Hong Kong Monetary Authority has relaxed mortgage loan policies, which are in effect attracting the public and investors to the market and driving its recovery, the group will leverage this positive sentiment,” said Adrian Cheng Chi-kong, NWD’s CEO.

“We hope that we can achieve a positive sales revenue result in the coming year.”

Financial Secretary Paul Chan Mo-po scrapped all cooling measures restricting property transactions on Wednesday as he unveiled a budget aimed at restoring the city’s flagging fiscal health with a raft of belt-tightening policies and launched a hunt for new revenue streams.
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Analysts said these measures are unlikely to trigger a rebound in prices, with the prevailing weakness being caused by a combination of elevated borrowing costs, a sluggish economy and a bloated supply pipeline. They do, however, expect the decline in prices to slow down and transaction volumes to rise.
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