Property market recovering, Sun Hung Kai

Sun Hung Kai, the world’s biggest developer, said the worst is over for China’s property market and the company is upbeat on the outlook after a strong response to its Lake Dragon villa project in Guangzhou. On of the first villas is shown here.

‘Guangzhou’s market was the first to fall, and it’s the first to bounce back, Alfred So, executive director of Sun Hung Kai Real Estate Agency, said. ‘We’ve seen that in trading volume of the first-hand property market in the fourth quarter last year, and now property prices have pressure to rise because units were sold so quickly.’

Sun Hung Kai’s 6% owned Lake Dragon project in Guangzhou has drawn more than 100 registered buyers, each paying RMB300,000 ($44,000) deposits to be in line to buy 85 units offered in the first-phase sale, said Echo Huang, general manager for south China at the developer.

The project may go on sale May 1, So said, declining to give the average price per square meter.

Bloomberg reported Sun Hung Kai shares have gained 26% in Hong Kong this year, compared with the 6% advance in the benchmark Hang Seng Index.