Cheung Kong, Sun Hung Kai laughing all the way to the bank in world’s priciest apartment market
Hong Kong’s residential property prices, which are the highest among the world’s major urban centres, have turned the city’s two biggest developers into winners, helping them beat their 12-month sales targets half way through the year.
Cheung Kong Property Holdings, the flagship developer of Hong Kong’s wealthiest man Li Ka-shing, more than doubled its first-half revenue to HK$27.75 billion (US$3.55 billion) from selling 1,565 units in eight wholly owned or joint venture projects, according to Centaline Property Agency’s data.
At Sun Hung Kai Properties (SHKP), first-half receipt rose 17.6 per cent to HK$22.1 billion, from the sale of 1,542 units, Centaline said.
The two developers sit atop a list of Hong Kong developers by sales, followed by Wheelock Properties, New World Development and Henderson Land Development. The city’s five largest builders sold HK$85.7 billion worth of apartments and villas between them during the first half, Centaline said. Six of the 20 best-performing stocks on the 50-member Hang Seng Index in the first half were developers, led by Cheung Kong’s 30 per cent return.
Cheung Kong’s shares were recently trading at a two-year high of HK$62.10, valuing Li’s company at almost HK$230 billion. SHKP shares have risen 19 per cent in the first half, trading at HK$119.20 in recent trading.
