CK Asset Sees Property Sales Surge Amid Development Profit Decline

CK Asset Holdings, a major real estate developer in Hong Kong, has seen a significant surge in property sales revenue in the first half of the year. According to the company's latest results, property sales revenue, including its share of joint ventures, climbed 193 percent to HK$21.6 billion ($2.8 billion) compared to the same period last year.

This increase in property sales revenue is largely attributed to the recognition of sales at the Blue Coast and Blue Coast II luxury projects in Hong Kong's Southern district. However, the company's development profit contribution fell to HK$765 million from HK$1.8 billion, compressing the implied margin to 3.5 percent from 24 percent.

The margin squeeze came even as CK Asset found buyers at the top end of Hong Kong's housing market. A 3,022 square foot (281 square metre) penthouse at 21 Borrett Road in Mid-Levels sold in June for HK$380.8 million, or HK$126,000 per square foot, topping a citywide 2026 record set by another unit in the project less than two weeks earlier.

CK Asset also pointed to increased leasing activity at Cheung Kong Center II as tenants pursued higher-quality space in Hong Kong's prime Central district. Occupancy at the 41-storey tower had more than doubled in the year to date to around 60 percent by July, Bloomberg reported, while groupwide office rental revenue rose 4.8 percent to HK$913 million during the first half.

### High End Heats Up

The high-end property market in Hong Kong has been heating up, with CK Asset finding buyers at the top end of the market. A 3,022 square foot (281 square metre) penthouse at 21 Borrett Road in Mid-Levels sold in June for HK$380.8 million, or HK$126,000 per square foot, topping a citywide 2026 record set by another unit in the project less than two weeks earlier.

CK Asset also pointed to increased leasing activity at Cheung Kong Center II as tenants pursued higher-quality space in Hong Kong's prime Central district. Occupancy at the 41-storey tower had more than doubled in the year to date to around 60 percent by July, Bloomberg reported, while groupwide office rental revenue rose 4.8 percent to HK$913 million during the first half.

### Low-Base Rebound

The latest Hong Kong performance marked a turnaround from a low base. In the first half of 2025, CK Asset's attributable profit fell 26.2 percent amid declining asset values, while Hong Kong property sales contribution plunged to HK$74 million from HK$1 billion.

Hong Kong property sales revenue jumped more than sevenfold in the latest period to HK$20.7 billion, with contribution rising to HK$626 million. Mainland revenue, meanwhile, sank 88 percent to HK$455 million while contribution collapsed 97 percent to HK$48 million, as China's housing market remained sluggish.

CK Asset plans to launch Victoria Blossom in Kai Tak and two Yuen Long projects during the second half after securing presale consents. The group had HK$6 billion in contracted sales yet to be recognised at the end of June, including HK$3.2 billion scheduled for recognition during 2026.

The developer launched Regency Garden Phase 5B-2b in Shanghai during the second quarter and plans to begin sales at the completed Greenwich Phase 2 in Beijing later this year. CK Asset said it would remain prudent on land replenishment while assessing prime development sites in Hong Kong and mainland China.

"The group will uphold a cautiously proactive approach to identifying potential investments and is well positioned to deploy capital as attractive opportunities arise," chairman Victor Li said.