Wharf Reports Tripling Hong Kong Revenue as Mainland Property Slump Persists
SCMP · 1 SOURCESabout 1 hour ago2 MIN
Summary
Wharf (Holdings) is increasingly relying on Hong Kong's luxury-home market to offset weakness in mainland China, while paring investments and building up cash as it navigates an uncertain outlook. Revenue from Wharf's Hong Kong development properties nearly tripled to HK$1.35 billion (US$172 million) from HK$475 million in the first half, with operating profit rising more than fivefold to HK$166 million. That helped offset a 54 percent drop in revenue from mainland development properties, where the company booked a HK$547 million impairment provision.
Key Points
- Hong Kong development revenue nearly tripled to HK$1.35 billion in the first half, with operating profit surging more than fivefold to HK$166 million
- Mainland development revenue plunged 54 percent, with the company recording a HK$547 million impairment provision amid the prolonged property downturn
- Wharf sold its first house at the ultra-luxury 1 Plantation Road project on the Peak for HK$558 million, or about HK$91,000 per square foot
- Its 30 percent-owned Victoria Voyage project in Kai Tak sold 198 units for HK$3.53 billion during the period
- Mainland attributable contracted sales fell to 345 million yuan from 859 million yuan a year earlier, with the company reducing mainland exposure since 2019
Why It Matters
The diverging performance underscores how Hong Kong's improving residential market, driven by renewed buyer interest in luxury properties, is providing a rare bright spot for developers even as mainland China's property crisis continues to weigh on the broader sector. Wharf's strategy of pivoting toward Hong Kong's high-end segment while winding down mainland operations reflects the challenging choices facing regional developers amid Beijing's crackdown on offshore capital flows and a prolonged mainland property downturn .
The diverging performance underscores how Hong Kong's improving residential market, driven by renewed buyer interest in luxury properties, is providing a rare bright spot for developers even as mainland China's property crisis continues to weigh on the broader sector. Wharf's strategy of pivoting toward Hong Kong's high-end segment while winding down mainland operations reflects the challenging choices facing regional developers amid Beijing's crackdown on offshore capital flows and a prolonged mainland property downturn .