Henderson Land Development's (0012) chairman and managing director, Martin Lee Ka-shing, expects Hong Kong's property prices to rise 5 to 10 percent this year following a steady recovery of the property market, denying market overheating concerns.
Lee said the overall property price index had been rising for over 10 consecutive months. He also noted that the first-hand property market transactions have already exceeded 10,000 units, according to Centaline Property Agency, and he hopes the transaction volume can reach 20,000 units this year.
Lee added that several projects launched this year sold out in each batch, and the company has been accelerating the launch of new projects.
Meanwhile, he noted optimistic rental rates across Central properties, including a 95 percent occupancy rate at The Henderson and an over 70 percent office leasing rate at the soon-to-be-released Central Yard. Daily Manson also recorded occupancy rates above 90 percent. Lee said tourist spending during the Labor Day Golden Week rose 10 percent year on year.
With the company lowering its total dividend payout for 2025 by 30 percent to HK$1.26 per share, Lee said that they must consider the company’s long-term interests and maintain a stable financial position amid global uncertainties. But looking at the growing property sales performance this year, he said the company aims to offer a better dividend in the next distribution.
Regarding the inland projects, Augustine Wong Ho-ming said the company has resubmitted an application for the blueprint of its redevelopment project for Champagne Court Block B in Tsim Sha Tsui after the Town Planning Board rejected the previous application. Furthermore, he noted that, given the high acquisition cost of Court A, there is currently insufficient incentive to proceed with a compulsory sale and redevelopment plan. He expressed hope that the government would provide more support for urban renewal.
Separately, the company's Tai Po project, Parkwood, is ending its use as student accommodation because the lease with the Chinese University of Hong Kong is expiring. Wong explained that student demand has shifted, and the project has been taken back and will be sold in the second half of the year.
