Mainland developers fade in Hong Kong after property crisis

CHINESE developers that once expanded aggressively in Hong Kong have retreated from the city amid an unprecedented downturn in the mainland.

From 2018 to 2020, mainland developers’ share of residential areas obtained from government land sales, including joint ventures, were about 57 per cent. That figure has dropped to 16 per cent from 2021 to 2023, according to government data compiled by Jones Lang LaSalle.

That means an increase in market share for the five major local developers, such as CK Asset Holdings and Sun Hung Kai Properties. Smaller companies such as Sino Land are also acquiring more projects.

China’s prolonged property slump has caused chaos among developers big and small. This month, officials asked local governments to better support developers’ financing needs, after home prices fell by the most in almost nine years. Country Garden Holdings, Logan Group and KWG Group Holdings – businesses that once enthusiastically bid for land in Hong Kong – are all struggling to repay debt. BLOOMBERG