Hong Kong’s largest developer by market cap posted a 20 per cent drop in net profit to HK$19.04 billion (US$2.44 billion) for the year ended June
Sun Hung Kai Properties (SHKP), Hong Kong’s largest developer by market capitalisation, will launch a number of residential projects over the next 10 months as it positions itself to take advantage of “the interest-rate-cut cycle”.
The projects include the first phase of Cullinan Sky in Kai Tak, a new block at The Yoho Hub II in Yuen Long, a joint venture on Prince Edward Road West in Ho Man Tin, the second phase of Yoho West in Tin Shui Wai and the first phase of Sai Sha near Ma On Shan, the company said on Thursday.
On the mainland, the group plans to launch new batches of joint-venture developments, such as Lake Geneve in Suzhou, Hangzhou IFC, and Oriental Bund in Foshan.
The plan was unveiled as the developer reported a 20 per cent decline in net profit to HK$19.04 billion (US$2.44 billion) for the year ended June 30, from HK$23.90 billion last year.
Profit from property sales totalled HK$7.85 billion, a slump of 30.5 per cent from HK$11.29 billion a year earlier. Contracted sales reached about HK$37.5 billion in the last financial year, according to the company’s filing to the Hong Kong stock exchange on Thursday.
“The residential market in Hong Kong became active following the withdrawal of property cooling measures in February 2024, but has softened in recent months due to the prevailing high interest rate environment,” Raymond Kwok Ping-luen, chairman and director, said in the earnings statement.
“Nevertheless, the beginning of an interest-rate-cut cycle for selected advanced economies and a clearer rate-cut path should pave the way for economic growth.”
Despite the uncertain geopolitical landscape because of the coming US presidential election in November and inflationary pressure, the property giant expected Hong Kong’s economy to register modest growth in the near term.
The company said it expected an influx of non-local students and professionals, driven by Hong Kong government’s measures to attract talent and investments, will help boost the city’s economy and housing market.
As of July, the Hong Kong government’s scheme to attract talent had drawn 93,000 applications, of which more than 73,000 were approved, according to official data. Of those, 60,300 had already arrived in the city.
“Rising home rents reflect that underlying housing demand remains solid, while the potential interest-rate cut should further benefit the housing market,” Kwok said.
SHKP said the group will keep on carrying out strict cost control. The company said the overall construction capital expenditure is expected to decrease reasonably in the next few financial years, but did not elaborate further.
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