Henderson Land Development (0012) says it will continue to develop its remaining 3 million square feet of land in Hung Shui Kiu although over a half is set to be resumed by the government.
Speaking at the developer's annual general meeting yesterday, chairman Martin Lee Ka-shing said there are a lot of opportunities in the Northern Metropolis - which includes the Hung Shui Kiu/Ha Tsuen New Development project - and Henderson will not slow down developments on farmlands.
Henderson is expected to receive HK$3.9 billion from the government in compensation for its 3.5 million sq ft of land to be recovered for the second phase of the Hung Shui Kiu/Ha Tsuen New Development, fueling speculation that the developer may quit the project. The area to be resumed by the government amounts to 53 percent of Henderson's 6.57 million sq ft land reserves in the district.
Lee said no arrangement has been made about paying land premiums for the involved sites.
On the local residential market, Lee expressed confidence that home prices would stabilize in the second half as the US Federal Reserve is expected to start cutting interest rates.
He predicted the office market will remain sluggish amid reports that The Henderson in Central, a landmark commercial building under renovation, achieved an occupancy rate of only 60 percent in May.
Replying to questions about the mainland's real estate market, another chairman, Peter Lee Ka-kit, said it will take time for the central government's stimuli to have an impact.
In respect of Henderson's new project The Haddon in Hung Hom, the company has received 240 checks from potential buyers for the 92 flats due to be sold in the first price list, making the batch 1.6 times oversubscribed.
Martin Lee, left, and Peter Lee. Sing Tao
