Land reclamation is key to solving Hong Kong’s housing woes, says tycoon Ronnie Chan

Land reclamation is the key to tackling the housing crisis that has made Hong Kong the world’s most expensive property market, according to tycoon Ronnie Chan Chi-chung.

Underlying profit, which excluded revaluation gains in investment properties, was down 24 per cent to HK$2.32 billion (US$296 million) in the six months to June 30 because of a sharp fall in property sales.

Hang Lung said profit from sales plunged by two thirds to HK$565 million in the first half of the year while rental income from Hong Kong and the mainland rose 8 per cent to HK$3.12 billion.

The developer shifted its main focus from selling homes in Hong Kong to building and operating commercial properties in mainland China about two decades ago. Because of the city’s escalating land prices, Hang Lung has not successfully bid for land in Hong Kong for more than 15 years.

The company sold only eight homes in Hong Kong during the first half – three semi-detached houses at 23-39 Blue Pool Road in Happy Valley and five units of The Long Beach development in Tai Kok Tsui, Kowloon.

The builder now has 13 homes left on the market, worth about HK$4 billion in total – 12 at Blue Pool Road, which have stood vacant for three years, and a flat at The Long Beach development, which has not been occupied for 13 years.