These two Hong Kong developers are set to release thousands of new homes this year to bolster profits
- Sun Hung Kai Properties and New World Development say more than 3,600 homes will head to the market by year-end
Hong Kong’s two top developers revealed plans to sell more than 3,600 homes by the end of the year to support earnings as the outlook for the property market appears uncertain.
Sun Hung Kai Properties (SHKP), Hong Kong’s biggest developer by market value, is upbeat about the market and said it would launch four projects with as many as 2,002 homes, not including unsold stock, this year.
New World Development (NWD), Hong Kong’s fourth-largest developer by value, plans to release 1,604 homes from three new projects and unsold stock.
“The market is still dormant. Buyers are still holding back their purchases and we see the poor property sales results. A market recovery will not come that fast and to unload their upcoming units, developers have to set an attractive price,” said Jeffrey Mak, property analyst at CGS-CIMB Securities.
He expects developers will follow the precedent set by Sino Land, which in December last year released homes at its Grand Central project in Kwun Tong at a 14 per cent discount to the prevailing market rate.