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Sun Hung Kai Properties Ltd 00016

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Hong Kong Government 2021 Policy Address Plans Long-Term Housing Supply

Michael Wu, CAIA Senior Equity Analyst

Analyst Note

| Michael Wu, CAIA |

With the worst of the coronavirus pandemic likely over and the return of social stability from the passing of the National Security Law, the Hong Kong Government’s 2021 policy address again focuses on housing and land related measures, and long-term economic growth initiatives. Regarding housing and land supply, key initiatives include Northern Metropolis in New Territories North, aiming to increase housing supply in the long term. The area, including recently identified new land supply, is expected to yield 565,000 units to 686,000 units over a 10 to 15 year period, from 2031 onward. The area is expected to be connected by rail, from the extension of MTR’s Northern Link. Separately, plans and feasibility for the Hong Kong and Qianhai railway will be assessed. Previously announced long-term initiatives to increase housing supply are continuing and include near shore land reclamation, the development of artificial islands at Lantau and extension of higher plot ratios for the redevelopment of industrial buildings. A working group is also being set up to lower the threshold for compulsory sale of village land in New Territories.

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Company Profile

Business Description

Sun Hung Kai Properties is the largest Hong Kong real estate company by market capitalisation, with substantial holdings in residential and commercial sectors. The firm was listed in 1972. The Kwok family is the controlling shareholder, with a stake of 48%. The Hong Kong operation currently contributes to 75% to 80% of operating profit. The China operation contributes 10% of operating profit and this is expected to increase to 20% in the next five years.

Contact
30 Harbour Road, 45th Floor, Sun Hung Kai Centre
Hong Kong, Hong Kong
T +852 28278111
Sector Real Estate
Industry Real Estate - Development
Most Recent Earnings
Fiscal Year End Jun 30, 2022
Stock Type
Employees 38,500