Sun Hung Kai Properties' profits increase by 17%! The signal of Hong Kong property market recovery continues to strengthen

Recently, Sun Hung Kai Properties released an announcement on the Hong Kong Stock Exchange, disclosing its operating data for the first half of the year as of December 31. The company's basic profit, excluding property revaluation gains, increased by 17% year-on-year, reaching HKD 12.2 billion (approximately USD 1.6 billion). At the same time, its mid-term dividend increased by 3%, delivering an impressive business performance. This performance growth not only demonstrates the company's own operational resilience, but also serves as another strong evidence of the sustained recovery of the Hong Kong real estate market, further releasing a positive signal of market recovery.

The announcement shows that the core driving force for the profit growth in the first half of this year comes from the strong outbreak of property sales business. Data shows that property sales contributed HKD 4.9 billion in profits to Sun Hung Kai Properties in the first half of the year, almost double the same period last year. Strong sales performance has become a key pillar supporting the company's profit growth; During the same period, the company recorded contract sales of HKD 18.9 billion. Based on industry data, Sun Hung Kai Properties has sold over 3750 new homes for the entire year of 2025, involving an amount of approximately HKD 35 billion. For the second consecutive year, it has been crowned as the "king of property sales" in Hong Kong, further consolidating its market dominance.

It is worth noting that the sales enthusiasm of Sun Hung Kai Properties is not an isolated case, but a microcosm of the overall recovery of the Hong Kong property market. The performance of its Xisha SIERRA SEA project is particularly outstanding. When the first phase 1A was launched in April 2025, it triggered market panic buying. The first round of sales received over 37000 tickets, with oversubscription reaching 116 times, becoming the "ticket king" of that year. Subsequent sales also continued to receive market popularity, with 42000 and 49000 tickets respectively, setting a new market high and reflecting the strong demand for the Hong Kong real estate market.

From the perspective of the overall market environment, the performance growth of Sun Hung Kai Properties cannot be separated from the overall recovery of the Hong Kong real estate market. According to data from the Rating and Valuation Department of the Hong Kong Special Administrative Region Government, the price index of private residential properties in Hong Kong is expected to rise by 3.25% annually in 2025, ending three consecutive years of decline and achieving its first rebound; The private housing rental index has increased by 4.26% year-on-year, maintaining growth for three consecutive years. In the second half of 2025, the private housing price index has risen by 4.15%, the best performance since the second half of 2019, and the recovery is very obvious.

Industry insiders analyze that the recovery of Hong Kong's real estate market is not accidental, but the result of multiple favorable factors working together. In 2024, the Hong Kong Special Administrative Region government will comprehensively "withdraw" (revoke residential property demand management measures), thoroughly activating market trading vitality; In addition, the wealth effect brought by the reduction of macro interest rates and the continuous improvement of Hong Kong stocks, as well as the active attraction of talents and enterprises by the SAR government to settle in Hong Kong, have further increased local housing demand. The combination of multiple favorable factors has gradually pushed the real estate market out of the trough and into the recovery channel.