Cheung Kong contract sales hit 13-year low

As project launches await the go signal.

According to Barclays, as projects that Cheung Kong planned to launch this year are still waiting for pre-sale consent, the company sold only 500 units in Hong Kong and expects only HK$5bn contract sales for 2013, a 13-year low.

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Including the contract sales in mainland China and the noncore asset sales, total revenue for FY13 could still reach HK$20bn.

Currently, Cheung Kong has three large-scale projects pending pre-sale consent – a 1,717-unit City Point in Tsuen Wan, a 1,648-unit Hemera (the third phase at Lohas Park) in Tseung Kwan O and a 1,071- unit Fung Yuen project in Tai Po. All three projects are now scheduled to launch next year.

In addition, two other projects – a 118-unit project in North Point and a 402-unit project in Sham Shui Po – are scheduled for next year. With five projects providing c5,000 units, Cheung Kong expects next year’s contract sales to return to HK$30bn.

Separately, Cheung Kong’s chairman, Mr Li Ka Shing dismissed the rumours that he is cashing out of Hong Kong and China and commented that recent sales of assets in Hong Kong and China are normal business behaviour.

Regarding the property market, he believes that both Hong Kong and China’s land prices are too high at the current level.