Hong Kong developers, seeking funds to tap an expanding government land supply, are this month preparing to sell the most homes in six years as expectations for prolonged low interest rates fuel demand.
Sun Hung Kai Properties Ltd., the world’s biggest developer by value, lowered its home sales target after the Hong Kong government’s extra property measures to curb prices that have doubled in four years.
Hong Kong will tighten mortgage lending rules and increase the supply of land as the government intensifies a campaign to suppress what Financial Secretary John Tsang called a “rare” gain in home prices.
Hong Kong property stocks should be avoided as growth in the city’s home prices may slow after its new leader vowed to increase housing supply upon taking over in July, according to CLSA Asia-Pacific Markets.
Henderson Land Development Co. , the flagship company of Hong Kong’s second-richest man, has lost 20 percent of its market value this year as it became the focus of government efforts to curb property prices and police raided its offices. Now some analysts say it’s time to buy.
Sino Land Co., the developer that derives almost all its earnings from Hong Kong, said fiscal first-half underlying profit rose 81 percent after booking more apartment sales as the city’s home prices rose to a record.