Cooling measures impact Hong Kong's major developers

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Leading Hong Kong-based developers recorded poor sales figures through 2013 as a result of government attempts the cool the market, Reuters recently reported.

Amongst the companies that announced worse-than-expected performances over the last 12 months was Cheung Kong Ltd, owned by Asia’s wealthiest person, Li Ka-shing

“We only recorded about HKD4 billion (USD515.9 million) of property sales for the entire year, merely 15 percent of the total sales… during the past two years,” Li told Guangzhou-based Southern Metropolis Daily last week.

Li, who is worth an estimated USD28.8 billion, claimed 2013 has been the company’s worst financial year in more than a decade, adding that the soaring land prices remain a concern.

“Land prices are high in Hong Kong, and (we) have seen an unhealthy trend. Land prices in the mainland are soaring as well and we can’t win the bids either,” he said.

According to Credit Suisse property analyst Joyce Kwock, Cheung Kong, Hong Kong’s second-largest real estate company by market value, achieved only 15 percent of its HKD30 billion (USD3.87 billion) sales target for 2013.

Meanwhile, the city’s largest real estate firm by market value Sun Hung Kai Properties announced in September that it recorded a 14 percent drop in underlying profit through 2013.

 

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