Sun Hung Kai and New World Tap into China Property Market as Demand Soars

The Surge in Demand for Property in China

The China property market is witnessing a remarkable resurgence as Sun Hung Kai Properties (SHKP) and New World Development enhance their sales efforts in tier-1 cities. This shift comes on the heels of China's recent housing stimulus and measures aimed at easing home-purchase restrictions, particularly in Guangzhou.

Significant Sales Activity in Guangzhou

• SHKP is launching 109 flats at Forest Park, a major project in Guangdong, specifically catering to Hong Kong buyers.
• The average price of these properties is set at approximately 37,388 yuan per sq m.
• New World Development reports robust sales, exceeding expectations in Guangzhou and other key urban areas.

Impact of Beijing's Stimulus Package

In a bold move, Beijing has introduced the most substantial stimulus package since the pandemic to revive the property and stock markets. Key measures include reducing mortgage rates and down payments, particularly for second homes. Several tier-1 cities have eased restrictions on home purchases, demonstrating a positive outlook for home sales, especially for Hongkongers.

Strategic Location and Development Metrics

• Forest Park spans an impressive 1.8 million sq ft and is strategically located a short distance from the Guangzhou South Station.
• Significant traffic to showrooms has been recorded, with 300 times more visits during the recent “golden week” compared to typical weekly averages.

Concluding Insights on Market Dynamics

SHKP's Forest Park has been a key project, aimed at attracting buyers looking for luxurious homes. New World Development's performance has mirrored this growth, with expectations of achieving substantial sales targets fueled by improved market sentiment.