Struggles of Hong Kong Property Market and Major Developers
Thursday, 20 March 2025, 13:44
Impact of the China Property Slump on Hong Kong Developers
Hong Kong property developers are facing significant challenges as the ongoing China property slump impacts sales performance. CK Asset Holdings and Henderson Land Development, two of the largest developers in Hong Kong, reported steep declines in profits.
CK Asset Holdings Performance
- CK Asset saw a more than 21% drop in net profit to HK$13.65 billion (US$1.8 billion) for 2024.
- Investment property revaluation losses further strained their bottom line.
- The property sales revenue fell by 47.7% to approximately HK$10 billion.
Henderson Land Development's Financials
- Henderson reported nearly a third decline in profit to HK$6.3 billion.
- Their results included a fair-value loss of HK$2 billion.
- Despite struggles, new project launches in Hong Kong, like Belgravia Place and Eight Southpark, are set to continue.
Market Outlook
The outlook remains uncertain as geopolitical tensions and trade uncertainties affect global economic growth. Co-chairmen of Henderson emphasized that the development of AI technology in mainland China could potentially benefit the market.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.