Henderson Land vows to launch projects as planned amid cooling HK property market

Henderson Land Development (0012) said it will continue to launch its projects as scheduled despite Hong Kong’s property market showing signs of slowing over the past four to six weeks.

Henderson Land’s chief financial officer, Andrew Fung Hau-chung, mentioned in a Bloomberg interview that China’s tightening of capital controls, unclear tax rules on offshore assets, and uncertain interest rates have added market variables, and the market has yet to fully assess the relative impacts. 

He noted that the mid- to high-end housing market has recently shown signs of cooling, but the ultra-luxury market remains stable.

Regarding some developers having recently been offering discounts to reduce inventories, Fung said Henderson Land will not blindly chase short-term market fluctuations. He said the company's project launch plans for the next six months will stay the same, focusing on urban renewal projects in prime locations with prestigious school networks.

In addition, Fung said he is optimistic about the Northern Metropolis development, noting the government's clearer blueprint. Apart from cooperating with land resumption efforts, Fung said Henderson Land is exploring opportunities, having paid a land premium for a site near the future "University Town" and planning to develop land near the core areas.

On the commercial property front, Fung revealed that the occupancy rate at The Henderson in Central has reached 95 percent, with a single tenant leasing up to 75 percent of the floor area. He said the first phase now remains 70,000 square feet available for lease, which is expected to be handed over by the end of this year and is scheduled to officially launch by mid-next year. He noted that office rents in the Central district have recently recorded a slight uptick.
 

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