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Wharf boosts Hong Kong home revenue as mainland sales slump
In its interim results, the developer said Hong Kong revenue nearly tripled to HK$1.35 billion, helping offset a 54% decline in mainland property revenue and a HK$547 million impairment provision.
Hong Kong developer Wharf (Holdings) said it is leaning more on its local luxury-home business as weakness in mainland China continues to weigh on its results. In interim results announced Tuesday, 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.
The company reported operating profit rising more than fivefold to HK$166 million, helping offset a 54% drop in revenue from mainland development properties. Wharf also booked a HK$547 million impairment provision tied to its mainland projects.
Wharf said it recorded the sale of 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. It also said its 30%-owned Victoria Voyage project in Kai Tak sold 198 units for HK$3.53 billion during the period.
Wharf added that tighter outbound direct investment regulations by the central government have added uncertainty to the broad residential market, and it said the implications will need to be monitored, according to the company.