Cecil Chao: HK & Mainland property markets will stabilize

Cheuk Nang Holdings (0131) chairman and founder Cecil Chao Sze-tsung stated that the group will tender two projects next month, one on The Peak in Hong Kong and another in Kuala Lumpur, Malaysia, near the Petronas Twin Towers.

The local luxury project is Cheuk Nang Lookout on Severn Road at The Peak. Despite the lackluster sentiment, Chao mentioned that the luxury segment is distinct, especially for properties on The Peak, which are rare, and the government’s talent attraction program sustains the demand.

Additionally, Villa Cecil II and III at Mount Davis, and One Kowloon Peak at Ting Kau are also available for lease.

The project in Malaysia involves a 50-storey residential building with a total floor area of 1.7 million square feet.

Chao made these remarks to the media at a Christmas party held at his home yesterday.

He stated that the group will seek other residential investment opportunities after profiting from selling those projects.

Regarding the property markets in Hong Kong and mainland China, he mentioned that compared to previous cycles, the current situations are not as concerning, although the markets require time to stabilize. He added that fluctuations in the Hong Kong property market are normal, and he anticipates that the market will remain stable without significant declines in the long run.

However, concerning commercial real estate, he believes that short-term investment opportunities may not be favorable, and residential properties should be the primary focus.

He supported the idea of resuming land sales by application list, with hopes that the property and stock markets will gradually recover, leading to an improvement in the government’s fiscal deficit.

The group maintains its interest in the Greater Bay Area, and investments in the "Northern Metropolitan Region" are contingent on the financial situation. He noted a reluctance to borrow excessively from banks for investments.

Regarding the China-US trade situation, he expressed that this is not a major concern for the company.