Despite the challenging commercial operating environment in Hong Kong over the past year, Sun Hung Kai Properties (SHKP), as one of the biggest developers in Hong Kong, has maintained relatively robust business performance thanks to its prudent financial management, high-quality properties and services.
As of 30 June 2024, SHKP’s attributable land bank in Hong Kong amounted to about 57.8 million sq ft. Of these, about 38.2 million sq ft were diversified completed properties, an overwhelming majority of which were for rental and long-term investment purposes.
SHKP recorded contracted sales of about HK$25.6 billion in attributable terms in Hong Kong. Major contributors included Yoho West Phase 1 in Tin Shui Wai, The Yoho Hub II in Yuen Long, Cullinan Harbour Phase 1 in Kai Tak and Dynasty Court Tower 2 & 3 in Mid-Levels Central.
In the coming year, SHKP will continue to launch new residential projects, including the first phase of Cullinan Sky, a new block at The YOHO Hub II, a joint-venture project on Prince Edward Road West in Ho Man Tin, the second phase of Yoho West and the first phase of Sai Sha project near Ma On Shan.
The first-hand sales of residential property in Hong Kong soared after the removal of cooling measures in February 2024. Following a period of hot sales, the tide gradually receded, but the rental market of Hong Kong has improved as the government-launched Hong Kong top talent scheme has marked an influx of entrants to the region.
Rental revenue and net rental income from property investment in Hong Kong, including share of joint ventures and associates, increased by 1% to HK$17.942 billion ($2.3 billion) and HK$13.423 billion, respectively. The increase was mainly driven by increased contributions from the retail and the serviced apartment segments.
Currently, the High-Speed Rail West Kowloon Terminus Development is the most important investing project in Hong Kong. It comprises two sets of twin-block premium grade-A office towers (named International Gateway Centre) and a retail podium underneath and will complete in 2025. This project not only has achieved the highest ratings across major sustainable building pre-certification programmes but SHKP has exchanged a green lease with UBS, an anchor tenant of the International Gateway Centre to meet commitments of sustainability.