Hong Kong builder New World Development’s interim core profit falls 16pc, but still beats estimates
Company generated revenue of HK$27.93 billion in the six-month period, up 4.9 per cent from HK$26.63 billion a year earlier
New World Development, the Hong Kong developer, plans to splash out HK$20 billion (US$2.55 billion) this year buying more land in mainland China in a move to strengthen its market presence there, particularly in the Greater Bay area.
“Currently we mainly focus on Guangzhou, Foshan and Shenzhen and we are hoping to develop in Zhuhai, Zhongshan and Shunde in future,” said Adrian Cheng Chi-kong, the executive vice-chairman and general manager said at its annual results briefing on Tuesday.
At the end of December 2017, the company had a land bank of 2.65 million square meters in Guangzhou, Foshan and Shenzhen, accounting for 41 per cent of its total of 6.47 million square meters earmarked for major property development projects, excluding car parks, in the mainland.
The multibillion-dollar Hong Kong-Zhuhai-Macau bridge allows shorter and more convenient transport to the cities in the Greater Bay Area, which consists of nine cities in Guangdong and the two special administrative regions of Hong Kong and Macau.
Cheng also said the company plans to continue its NewGen First Home Program – for which home-seekers aged between 25 and 35, who are permanent residents and have never owned property in Hong Kong can apply – and aims to provide more flats under the scheme by the end of 2018.
Last year, the developer offered 15 flats at The Parkville residential development in Tuen Mun with initial down payments as low as 7.5 per cent to such young buyers, in a way to help them onto the housing ladder.