Cheung Kong will sell fewer flats in 2015
Updated: 2015-02-04 07:47
By Sophie He in Hong Kong(HK Edition)
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Home builders in Hong Kong will benefit from robust economic growth and low interest rates in 2015: Analysts
Hong Kong billionaire Li Ka-shing's Cheung Kong Holdings Ltd said on Tuesday it planned to sell around 3,000 apartment units in the city this year, down from last year's 3,300 units.
Cheung Kong Executive Director Justin Chiu Kwok-hung told a press conference that the company planned to sell properties worth around HK$30 billion in Hong Kong and on the mainland this year, down from HK$40 billion in 2014.
Hong Kong homes prices still have room to rise as interest rates are expected to stay low and the prospect of the local economy has remained sound, said Chui, adding that the company will continue to actively tender for land. Its exisint land bank is enough for five-years of development, he said.
"I don't have any doubts that Cheung Kong will be less motivated to launch new projects and sell its products this year," Wong Leung-sing, senior associate director at research department of Centaline Property, told China Daily.
The 3,000 residential units may just be a preliminary target, Wong said. That does not mean that Cheung Kong will eventually sell less units than last year, he said. He projected that total sales of residential in the primary market this year will increase to 18,000 new units, up from 16,000 units in 2014.
"There is no reason for major developers in Hong Kong to be pessimistic about the market," Wong said. "They were doing fine in 2014, and they are going to do even better in 2015" because of low bank interest rates and possible inflow of funds from Europe, he said.
Buggle Lau Ka-fai, chief analyst at Midland Realty, agreed, predicting that major developers in the city will continue to launch projects proactively in 2015 while property prices will remain firm.
"After all, it is a small city with a relatively large population, the demand is very strong," said Lau, although he conceded that developers are unlikely to raise prices aggressively.
Lau forecast that without any major policy change and unexpected interest rise, prices of small-sized apartments are set to increase in the first half of 2015.
But not everyone is as optimistic about the residential market this year. Barclays issued a research report on Monday saying that it currently holds a neutral view on Hong Kong property market, although it expressed its concerns that slower economic growth, increasing supply, and lacking of investors' interest will lead to a decline in property prices.
Barclays said that the average price of apartments in Hong Kong could drop by as much as 15 percent in 2015.
sophiehe@chinadailyhk.com
(HK Edition 02/04/2015 page8)