Hong Kong's top developer sees underlying profit rise 4.6% amid real estate revival
Sun Hung Kai Properties posted a 4.6% increase in underlying profit to HK$22.85 billion for the fiscal year ending June, while reported profit rose to HK$21.43 billion on a net revaluation gain. The company's chairman linked the improvement to a recovering residential market, supported by better economic conditions and an active financial sector. Contracted sales in Hong Kong reached HK$38.1 billion, with new project launches planned for the rest of the year and into 2027.
The developer's reported profit reached HK$21.43 billion, buoyed by a HK$1.38 billion net revaluation gain, contrasting sharply with a prior-year loss. Chairman Raymond Kwok credited the upturn to a stronger economy, active financial markets, and lower borrowing costs, alongside a steady influx of talent and students that has pushed residential rents higher.
Contracted sales in Hong Kong totaled HK$38.1 billion, driven by projects in Sai Sha and Kai Tak. The firm plans further launches in Yuen Long, Tai Wai, Kwu Tung North, and Sha Tin through 2027. This performance aligns with a 3.59% rise in lived-in home prices in 2025, ending a three-year market slump.
The developer's improved results and planned project launches could reinforce market confidence, potentially encouraging more homebuyers and stabilizing residential prices. However, the recovery may remain dependent on favorable interest rates and financial market activity, leaving it vulnerable to economic shifts. Sustained talent inflows might also keep rental costs elevated, affecting tenants. Broader economic sentiment could benefit if construction and sales momentum persists, though affordability concerns may persist for average residents.