Hong Kong’s top developer shrugs off slump with 17% profit gain
Its underlying earnings, which exclude property revaluations, climbed to US$1.4 billion in the six months ended Dec 31
HONG Kong’s biggest property developer posted an increase in first-half profit as it shrugged off the city’s prolonged real estate slump.
Sun Hung Kai Properties’ underlying earnings, which exclude property revaluations, climbed 17 per cent to US$1.4 billion in the six months ended Dec 31, the company said in a filing on Thursday (Feb 27). The rise in profit followed two consecutive years of decline amid a three-year property downturn.
Nonetheless, challenges for the company remain. Sun Hung Kai and its peers are struggling to raise prices for residential projects in a market facing an oversupply of homes and demand weakened by persistently high borrowing costs. Home values have fallen 27 per cent since their peak in 2021 and are close to the lowest levels since 2016 in recent months.
Commercial landlords like Sun Hung Kai are also grappling with record-high office vacancies, limiting room for rental growth. The vacancy rate in the city was at 16.8 per cent at the end of last year, the highest since records began in 2006, data from Colliers International show. BLOOMBERG
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
