SHK Properties optimistic about HK property market

Sep. 17, 2009 (China Knowledge) - Sun Hung Kai Properties<0016>, Hong Kong's largest developer by market value, Tuesday said it expects that the residential property market in Hong Kong will remain vigorous despite the weak global economy, sources reported.

The property developer said Hong Kong's property market is basically stable, that the city's residents now are able to buy houses because mortgage rates are low, and that rental income is attractive.

The company said it is optimistic about the city's residential property market as demand for residential property is rising, especially among buyers from mainland China, and the supply for the coming years is limited.

SHKP's net profit for the 12 months ended Jun. 30 decreased 62% from HK$ 27.60 billion a year ago to HK$10.36 billion, due to a loss from the revaluation of investment property. It aims to gain HK$23 billion from sales of residential units in mainland China and Hong Kong in the current fiscal year.