Sun Hung Kai Properties replaces New World Development as Hong Kong’s biggest developer by sales

·4-min read

Sun Hung Kai Properties (SHKP) has replaced New World Development as the biggest seller of new homes in Hong Kong after the latter had to tear down and rebuild hundreds of flats under construction in Tai Wai.

Chaired by Raymond Kwok Ping-luen, SHKP recorded sales of HK$29.65 billion (US$3.8 billion) in 2021, 15 per cent higher than the previous year, according to Dataelements, which tracks new residential property in Hong Kong.

New World Development dropped to No. 4 as its sales plunged 45 per cent to HK$14.49 billion. The dramatic tumble in revenues came after the firm announced it would rebuild two blocks of flats at Pavilia Farm, Hong Kong’s best selling project of 2020.

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More than 120 transactions in blocks 1 and 8 at Pavilia Farm III were cancelled after New World announced the concrete walls in the podium of the two towers failed to “meet the requirement of the approved design” during concrete strength tests in July.

New World still managed to sell 846 units at Pavilia Farm III for HK$12.71 billion, according to Dataelements. The project’s sales accounted for 88 per cent of New World’s revenue in 2021.

Wheelock Properties climbed to second from fourth, as its year-on-year sales jumped 89 per cent to HK$22 billion.

CK Asset’s sales dipped 4.2 per cent to HK$16.24 billion last year. Still, the company founded by Hong Kong’s richest man, Li Ka-shing, retained third place. Sino Land moved up 13 positions to fifth, with sales of HK$13.86 billion.

“Developers became more aggressive in launching new projects for sale in 2021. We saw new projects put on sale even on Christmas Day as most people stayed in Hong Kong due to the city’s tough quarantine measures,” said David Chan, a director of Ricacorp Properties, New Territories District.

SHKP enjoyed a strong end to the year, shifting 81 per cent of the 325 units available at its Yoho Hub project above Yuen Long Station on Christmas Day, contributing HK$3 billion of sales revenue.

Christmas and New Year are traditionally quiet as most people travelled aboard, said Chan.

SHKP’s Wetland Seasons Bay in Tin Shui Wai was the most popular project of the year in terms of registered buyers. More than 10,000 people put down money to register their interest to buy, equivalent to 33 bids vying for each of the first batch of 302 apartments available for open sale, while 48 of the larger units were earmarked for sale by tender.

Buyers had spent HK$10.3 billion to snap up 1,440 flats over four consecutive weekends since the development was launched in August, said Ricacorp. The average price of a unit at Wetland Seasons Bay was HK$7.16 million, the agency’s data shows.

“The sales office of Wetland Seasons Bay was jam-packed with young couples. Many of them returned in the second or third round of sales after they failed to secure flats on the launch day,” said Chan.

The luxury South Land phase one development, built by Road King Infrastructure, next to Wong Chuk Hang Station was the most sought-after among investors when it launched in May. The developer pulled in HK$13.6 billion from the sale of 624 units, said Ricacorp. The average price for each was HK$22.7 million, said Ricacorp.

South Land, the first apartment project in decades to sit on top of a major subway station, received 5,500 bids for the first batch of 240 units put on sale in May. That was an average of 22 buyers registering their interest for every available unit, with one family splashing out HK$200 million for eight of South Land’s three-bedroom apartments, agents said without identifying the buyers.

“We had more than 1,000 agents to assist with sales of The South Land as it was rare to have a large-scale project along the subway route put on sale on Hong Kong Island. We had 10 clients each wanting to buy more than two flats at that time,” said Derek Lau, a principal sales director for Centaline Property Agency’s Wong Chuk Hang district.

Some 5,000 units are to be developed in six phases in the area close to the Wong Chuk Hang subway station.

“So far, only 20 per cent have been sold. In 2022, this area will be a hotspot for buyers and investors,” said Lau.

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