NWL to build more homes in Hong Kong

Property firm New World Development Company Ltd reported a net profit for fiscal 2012 that was 11% higher than a year ago but below market forecasts.

It revealed a net profit was HK$10.1 billion, up 11% from the HK$9.15 billion year-on-year. Its underlying profit rose just 8% to HK$5.02 billion, lower than the market forecast of between HK$5.08 billion to HK$6.27 billion. NWL sold 1,318 residential units as of September 25.

Chairman Henry Cheng the company will keep a steady pace of property launch and sales, and timely launch projects according to its original schedule and market conditions, in a bid to ensure contributions from property development segment to the group's results.

"In my personal opinion, I favor the idea that the Hong Kong government should scrap the current presale practice in property sales, which can then immediately boost the residential flat supply," Cheng said.

"In the coming year, NWL will launch 9 new residential projects in the city that can sell attributable 3,337 residential flats. However, it is difficult to estimate how much revenue the contract sales can generate from these projects at the present moment," Cheng said.

In June, NWL had a landbank of some 9.4 million square feet in total attributable gross floor area (GFA) for immediate development, of which more than 50% are in urban areas. The company's effective share of GFA for residential property development is around 6 million square feet.