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Hong Kong property
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Sun Hung Kai Properties in pole position to benefit from Hong Kong’s property easing measures, analysts say

  • Developer’s HK$23 billion (US$2.9 billion) sales target for financial year 2024 is ‘conservative’, could exceed HK$30 billion or go even higher: CGS International
  • ‘SHKP should be among the prime beneficiaries of the policy easing,’ DBS Group Research says

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Residential housing in Hong Kong’s Yau Tong, as seen from the city’s Quarry Bay district. SHKP is controlled by the Kwok family and is widely regarded as a ‘proxy’ for the Hong Kong property sector, according to DBS Group Research. Photo: May Tse
Cheryl Arcibal
Sun Hung Kai Properties (SHKP), Hong Kong’s largest developer by market capitalisation, is being tipped by analysts to emerge as the “prime beneficiary” of the city’s removal of all property cooling measures.
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With seven projects comprising more than 8,100 units expected to launch this year, SHKP is likely to benefit from a revitalised property market.

“SHKP has the most saleable resources among its peers of more than 6,000 units,” said Raymond Cheng, managing director and head of China and Hong Kong property at CGS International. “We believe its HK$23 billion [US$2.9 billion] sales target for financial year 2024 is conservative, and think it can reach HK$30 billion, or even higher, due to the removal of [Hong Kong’s] harsh measures, and several rate cuts in the US during the rest of the year.”

During his budget speech last week, Financial Secretary Paul Chan Mo-po announced an immediate end to Hong Kong’s decade-old property curbs, including the Buyer’s Stamp Duty designed to target non-permanent residents, the New Residential Stamp Duty for second-time purchasers, as well as the Special Stamp Duty aimed at homeowners that resell their properties within two years.

On the same day, the Hong Kong Mortgage Authority followed suit and relaxed its curbs. Homes valued at less than HK$30 million will now be eligible for 70 per cent mortgage financing, compared with the previous rule that granted only 60 per cent financing for flats valued between HK$15 million and HK$30 million.

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First-hand property sales are likely to rise by 42 per cent from 10,500 units in 2023 to 15,000 this year, according to Midland Realty, a forecast that should brighten the outlook for Hong Kong’s property developers.
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