New | Hong Kong home prices, driver of CK Property’s earnings, to remain buoyant, Li Ka-shing says
Li’s two main holding companies both reported stronger earnings, in their first set of full-year results after the tycoon’s corporate reorganisation, prompting him to raise final dividend payouts
Residential property prices in Hong Kong, already the world’s costliest urban centre to live in, will remain buoyant over the next two years because the supply of land and new homes cannot keep up with demand, said Li Ka-shing, the city’s wealthiest man and chairman of one of its biggest builders of apartments and luxury homes.
Record property prices propelled the underlying profit of Li’s Cheung Kong Property Holdings up by 16 per cent to HK$18.03 billion (US$2.32 billion) last year, spurring the company to raise its year-end final dividend by 9.5 per cent to HK$1.15 per share.
“Home prices will not fall over the next two years as there is strong buying demand,” Li said during a Hong Kong press conference after announcing the 2016 results of his two holding companies.
CK Property and CK Hutchison Holdings, Li’s main holding companies, both reported stronger 2016 profits on Wednesday, delivering to shareholders a solid set of full-year results after the tycoon reorganised his corporate empire.
CK Property’s 2016 revenue jumped 19 per cent to HK$69.9 billion, beating analysts’ estimates in a Bloomberg survey.
“The result is better than expected,” Prudential Brokerage’s associate director Alvin Cheung Chi-wai said. “Homebuying interest will not be affected in the near future by the imminent interest rate increase.”
