Hong Kong’s major property developers are shifting investment in mainland China from residential projects to commercial assets, including hospitality, as weak home sales and fewer attractive investment opportunities prompt them to focus on existing properties, recurring income and debt reduction.
“In recent years, after we recycled the capital from our projects, we haven’t really found many good opportunities on the mainland,” Stephen Ng, chairman and managing director of Wharf Holdings, said at its interim results press conference in August.
Wharf’s experience reflects a broader change in how Hong Kong developers are approaching assets in the world’s second-largest economy.
Once an important growth market for Hong Kong’s major developers, mainland China offers opportunities to expand beyond their home market through residential projects and established local connections.