The Hong Kong residential property market is continuing to show steady demand, with Ting Hai in Wan Chai scheduled for sale tomorrow. Henderson Land's executives believe that the strong fundamental factors, along with government policies to attract talents and students, a vibrant capital market, infrastructure investments, and the opportunities brought by the Northern Metropolis District (Northern DG), are supporting the housing market. Young people and the next generation are seeing more opportunities for employment and development, which is expected to maintain the stability and improvement of the residential market in the next year. As residential demand remains steady, investors' interest is increasing, especially given the attractive rental returns, which now exceed 3.5% and 4%, compared to the bank's yield of less than 3%. This strong yield provides confidence to potential buyers, and some tenants are now considering purchasing homes instead of renting. Furthermore, recent sales of new properties have been strong, reinforcing expectations that the property market will continue to grow steadily, with robust rental growth projections. The Northern DG, supported by various initiatives, is driving increased demand for residential properties, especially among young mainlanders who see Hong Kong properties as an ideal asset allocation tool. Ting Hai, a collaboration between Henderson Land and CSIC and linked to the Urban Renewal Authority, has received over 9,300 applications, indicating strong interest. It will release 138 units for sale starting tomorrow at starting prices of HKD 5.98 million, and 12 ocean-view 3-bedroom units will be auctioned. Henderson Land has also announced 3 incentive mortgage plans, including the "P to H discount" which offers a 2.32% lower interest rate for the first two or three years before reverting to market rates. Additionally, Henderson Land has sold around 1,839 units and realized over HKD 16 billion in revenue from its projects and collaborations. Among its key projects, Kai Tsing Wan Ha Yik Bay, Kam Shun Road Banner House, and Po Tsing Village Banner House are all expected to deliver properties by the second quarter next year. The sales performance of Ha Yi Bay has been particularly strong, with around 1,245 units sold and HKD 10.8 billion realized. The company plans to launch three major projects in the coming year, totaling around 2,850 units. Among these, Ting Hai, with 451 units, is the first to go to market. Another collaboration project in Kwun Tong is set for market launch in the latter half of next year, providing around 600 units. This project is located in the neighborhood with the 41st school catchment and has a luxury positioning, including units from 1-bedroom to 4-bedroom. The Kowloon City project, in partnership with Chow Tai Fook and China Overseas, also plans to launch in the latter half of next year, with a total of 1,800 units, mostly 2-bedroom units, with a unique selling point of connecting the shopping center and the metro station. All these projects are expected to be launched in the latter half of next year.
Talents and students' continued inflow, alongside the return of overseas residents, are bolstering local homebuyer demand. The vibrant financial market attracting global companies and their employees has increased the need for residential properties, particularly in convenient locations. Investors see property as a robust asset class, especially for young mainlanders looking to set up roots in Hong Kong. These groups continue to drive the market, supporting new developments, particularly in areas offering scenic views and easy access to transportation. The Northern DG, a key driver according to Henderson Land, offers a range of opportunities including the development of innovative technology and industries. It supports an improved lifestyle and employment prospects for the region's youth and next generation, encouraging more long-term investment in residential properties.
Fielding questions about the Northern DG, Executive Director Ting Yeo of Henderson Land expressed continuous confidence in Hong Kong's future. Henderson Land collaborated with five large enterprises in the first pilot project of the new development zone in洪水桥/厦村地区，进一步支持香港的科技创新和产业发展条件。同时，该公司将继续战略性地补充土地储备以支持长远发展，并认真研究每一块用地；除了洪水桥/厦村新发展区首个片区开发试点项目外，年内还成功获得佐敦谷、屯门和锦上路站的三幅优质用地，全面支持集团未来的物业发展需求。