Skip Ribbon Commands
Skip to main content

News Release

Hong Kong

Top local developers losing influence in Hong Kong residential market

Government's residential sites acquired by top 7 developers decreased by 50% in five years

HONG KONG, March 1, 2017- PRC developers' growing involvement in the Hong Kong residential market and strong appetite of small-to-mid-sized local developers has seen the share of influence of top local heavyweights decrease over the past five years, according to JLL's latest Hong Kong Residential Sales Market report released today.

JLL figures show the percentage of residential development sites won by seven major developers in Hong Kong, namely Sun Hung Kai Properties, Cheung Kong Property, Henderson Land, Nan Fung Group, New World Development, Sino Land and Wheelock Properties in the public land sales market has shrunk steadily from 45% in 2012, to 28% in 2014 and 22% in 2016. Most recently, these developers have also missed the bid on land sale tenders via MTRC and Urban Renewal Authority sources to newcomers.

From a supply perspective, the seven developers would expect their share of total private completions decrease to 53% between 2017 and 2019, from 84% in 2014 and 77% in 2016, based on our records.

Henry Mok, regional director of capital markets at JLL, said: "The seven heavyweight developers won only five residential sites in the government public land sales market last year, compared with 10 sites in 2012. The tender of MTRC projects, usually with larger development scale, has also seen their level of influence decrease. Looking ahead, their contribution to future housing supply is expected to fall. From our understanding, the heavyweight developers have already raised their offers in land bidding, despite still falling short of the winning bids. Given difficulties in replenishing their land bank, major developers may turn to selling the new flats at higher prices, at the expense of sales volume. We expect asking prices of new projects to remain firm."

"With mainland's cooling measures in property market still in place, mainland developers will continue to look for development opportunities in Hong Kong, even if they need to pay a premium for a plot," he added. ​

– ends –​​


>>>Read more about J​LL ​News
>>>Read more a​bout​ JLL Research​​​

About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. A Fortune 500 company, JLL helps real estate owners, occupiers and investors achieve their business ambitions. In 2016, JLL had revenue of $6.8 billion and fee revenue of $5.8 billion and, on behalf of clients, managed 4.4 billion square feet, or 409 million square meters, and completed sales acquisitions and finance transactions of approximately $136 billion. At year-end 2016, JLL had nearly 300 corporate offices, operations in over 80 countries and a global workforce of more than 77,000. As of December 31, 2016, LaSalle Investment Management has $60.1 billion of real estate under asset management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information,

JLL has over 50 years of experience in Asia Pacific, with 36,000 employees operating in 94 offices in 16 countries across the region. The firm won the ‘World’s Best’ and ‘Best in Asia Pacific’ International Property Consultancy at the International Property Awards in 2016 and was named number one real estate investment advisory firm in Asia Pacific for the fifth consecutive year by Real Capital Analytics.​  

In Greater China, the firm was named ‘Best Property Consultancy in China’ at the International Property Awards Asia Pacific 2016, and has more than 2,200 professionals and 14,000 on-site staff providing quality real estate advice and services in over 80 cities across the country​.  www.joneslang​​