A Hong Kong developer has warned that the property sector’s recovery will be slow, despite some signs of improvement in the second half of the year. The company reported a 16% drop in net profit to HK$1.8 billion and an 11% decline in revenue to HK$9.95 billion for 2025. However, it sees potential growth in mainland retail, with rental revenue from its mall portfolio rising 1% and occupancy increasing by two percentage points.
The developer highlighted its efforts to upgrade tenant mixes and introduce new brands in its shopping malls as key drivers for growth. It operates 11 retail properties in mainland China, including prominent locations like Plaza 66 in Shanghai and Palace 66 in Shenyang. While the broader property market faces challenges, the company remains optimistic about the retail and consumption sectors in mainland China.
Despite the tough outlook for the property segment, the developer believes mainland retail offers the clearest upside. The group’s focus on enhancing its mall offerings and attracting compelling brands is expected to sustain growth. However, a rapid or broad-based rebound across all property segments is not anticipated in the near term.