Sun Hung Kai Properties Limited (SHKP) today announced its 2024/25 annual results. 

During the year under review, the global economic environment was affected by geopolitical tensions and international trade frictions. SHKP has proactively adapted to shifting market trends, drawing on its solid foundation, strong execution capabilities, time-tested financial discipline and strategies to maintain a stable business performance. 

During the year, Hong Kong’s residential market showed further signs of stabilization on the back of relaxed mortgage restrictions and lower local mortgage rates. The Group recorded contracted sales of about HK$42.3 billion in attributable terms in Hong Kong. Major contributors included Cullinan Sky Phase 1 in Kai Tak; Sai Sha Residences Phases 1A(2) and 1B, namely Sierra Sea; Victoria Harbour II in North Point; YOHO WEST PARKSIDE in Tin Shui Wai; NOVO LAND Phase 3B in Tuen Mun; and the remaining units from completed projects, including The YOHO Hub II in Yuen Long and St Michel in Sha Tin. In addition, units at Dynasty Court in Mid-levels Central continued to receive a positive market response. As at the end of June this year, the Group’s contracted sales in Hong Kong yet to be recognized amounted to approximately HK$35.6 billion, of which about HK$30.1 billion is expected to be recognized in the financial year 2025/26.

With dedicated government policies to attract investment and talent, coupled with rising home rents and expectations of lower interest rates, buyers’ confidence and transaction volumes in the residential sector are expected to continue to improve. Over the next 10 months, the Group will put on the market completed units from the second phases of Cullinan Sky and Cullinan Harbour in Kai Tak. Other major residential developments to be offered for sale in Hong Kong will include Sai Sha Residences Phase 2A and 2B; a project near MTR Tsuen Wan West Station; and the first phase of a large-scale development adjacent to MTR Kwu Tung Station.  

The Group has established a strong edge in developing large-scale integrated projects, distinguished by innovative concepts, comprehensive facilities and convenient connectivity.  The Group’s latest landmark, Sai Sha Residences, exemplifies this strength, blending beautiful natural surroundings with modern convenient living to deliver a coastal lifestyle. Its initial phases, Sierra Sea, received an overwhelmingly positive market response and achieved the highest subscription rate in recent years, reflecting the strong appeal of the Group’s premium brand. Family- and pet-friendly amenities and services have been extended from the Group’s flagship malls to the Sai Sha project. The adjacent sporting commercial complex GO PARK Sai Sha has become a popular destination since its official opening in early 2025, attracting over two million visits. 

Despite a challenging economic environment, the Group’s property investment portfolio registered satisfactory overall occupancy during the year. The Group’s extensive and diverse office portfolio achieved a high retention rate and benefitted from the flight-to-quality trend. The average occupancy of IFC and ICC reached 92%.  In addition, the Group is committed to strengthening and developing West Kowloon as another CBD (core business district) in Hong Kong beyond Central. The International Gateway Centre (IGC), the office portion of the High-Speed Rail West Kowloon Terminus Development, is scheduled for handover to tenants starting in early 2026. Together with the Artist Square Towers Project currently under development in the West Kowloon Cultural District, and the Group’s completed ICC and hotels atop MTR Kowloon Station, these projects will form a commercial cluster with an aggregate gross floor area of over seven million square feet. This cluster is set to become a multifaceted hub of commerce, tourism, retail, arts and culture, serving the diverse needs of businesses and visitors.  

As regards the Group’s retail portfolio, innovation, prompt adaptation and optimization of trade mix have become key factors enabling its shopping malls to successfully maintain high foot traffic and popularity among consumers amid intense market competition. Occupancy remained high, with the decline in tenant sales narrowing in the first half of 2025. The Point, the loyalty programme of SHKP malls with over three million members, saw a steady increase in spending by active members and high-value customers in the year, demonstrating the resilience of these customer segments.  In July this year, an exclusive VIP programme, The Point Gold, was officially launched to offer loyal members a unique array of privileges by integrating resources from the Group’s various businesses. These privileges include extra free parking hours, complimentary reservations for the EV Super Charging service, extra reward points and access to a recently opened VIP lounge, all of which help to further enhance customer loyalty.  

In the next two to three years, the Group’s recurring income base will be further expanded. In addition to the handover of IGC, the 500,000-square-foot Scramble Hill, a shopping mall near APM in Kwun Tong, will begin opening in phases in the second half of 2025. The name, inspired by iconic landmarks in Shibuya, Tokyo, reflects the vibrant energy of bustling crowds and incorporates the geographical features of East Kowloon, showcasing the mall’s diversity and vitality. Located beneath The Millennity, Scramble Hill will feature a 15,000-square-foot pet-friendly sky garden, along with popular dining, lifestyle, and entertainment options, including first-time city debuts. The planned construction of an all-weather pedestrian footbridge connecting the mall to MTR Ngau Tau Kok Station will further enhance accessibility of the Group’s properties in the area. Meanwhile, Cullinan Sky Mall, the podium mall of Cullinan Sky in Kai Tak, is scheduled for phased opening starting from the fourth quarter of this year. 

On the mainland, the detached houses in Phase 2 of the joint-venture project Lake Genève in Suzhou received an encouraging sales response. As at the end of June this year, the Group’s contracted sales on the mainland yet to be recognized amounted to about RMB8.1 billion, most of which are expected to be recognized in the financial year 2025/26. 

Regarding property investment on the mainland, the Group has taken proactive measures to optimize mall services and tenant mix. These initiatives effectively drove footfall and stimulated consumption, enabling major malls to maintain high occupancy rates. The Group’s office portfolio benefits from key strengths, including excellent building standards, easy accessibility, professional management services and comprehensive amenities offered by the Group’s malls and hotels within the same integrated complexes. These advantages position it well to capitalize on the flight-to-quality trend. Construction of the remaining components of the mega project Three ITC in Shanghai – which includes the office building Tower B, the flagship mall ITC Maison and the hotel Andaz Shanghai ITC – is scheduled for completion by late 2025.  ITC has already obtained various green building and wellness certifications, including platinum pre-certifications for WELL and LEED for Tower B of Three ITC, enabling it to meet the stringent building specifications and green standards required by corporations. 

Committed to sustainable development, the Group saw its MSCI ESG rating upgraded to AA during the year. ICC became the first building in Asia to achieve LEED v5.0 Platinum certification for Operations and Maintenance: Existing Buildings. About 20,000 solar panels have been installed at the Group’s managed properties and construction sites, creating the largest solar panel network in Hong Kong by far. A joint venture of the Group has completed the construction of Hong Kong’s first privately funded solar farm on a landfill. To further promote low-carbon transport, the Group has built a network of nearly 100 super-fast EV chargers across all 18 districts, which have seen high utilization rates among electric car owners. 

Amid growing complexity in the global economic and political landscape, the Hong Kong economy is undergoing a transformation. An active financial market and a growing tourism industry will continue to drive moderate economic growth in the near term. The HKSAR Government has also implemented a series of stimulus measures, including the promotion of mega events to boost tourism, initiatives to attract talent and capital from both the mainland and overseas, and efforts to encourage mainland and international enterprises to establish a presence in Hong Kong. 

With the resolute support of the motherland and under the framework of ‘One Country, Two Systems’, Hong Kong will strengthen its role as an international financial centre and a transportation, trade, and aviation hub, and further bolster its competitive edge as a leading global wealth management centre. The city will also consolidate its position as a springboard for mainland enterprises to go global. With full confidence in the long-term prospects of both the mainland and Hong Kong, the Group will leverage its solid foundation, extensive experience and longstanding financial discipline to proactively embrace the economic transformation while continuing to deliver premium properties and services.