How Hong Kong is built.

How Hong Kong is built.

Supply of new flats lags behind strong demand.

It is expected the home flat price keeps rising in 2015 but the turnover drops.

After the launch of Double Stamp Duty as the administrative curb on residential real estate market in 2013, speculators changed their target to industrial and commercial buildings. The home market nowadays is mainly driven by solid demand of end users but not speculators anymore.

Cheung Kong Holdings (0001.HK) set an annual sales target of HK$30 billion for this year, lower than its turnover of HK$40 billion in 2014.

Executive director Justin Chiu Kwok-hung said he is not worried about possible cooling measures “as long as the measures are not too strict,” as most of the buyers are end users.

He expects home prices to gain no more than 10 percent.

The developer is set to launch up to 4,000 flats in Hong Kong and the mainland this year, against 3,900 units in 2014. Sales were higher last year thanks to a one-off sale of a Shanghai office tower cashing for about 10 billion yuan (HK$12.39 billion).

Eight projects will be launched in Hong Kong, of which La Lumiere in Hung Hom could be sold later this month.

Source: The Standard Finance

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