Hong Kong's property market is showing a clear improvement this year, with the potential for private residential unit sales to reach 20,000, according to the chairman and managing director of Henderson Land Development Co. Ltd. He also projected that home prices will increase by 5% to 10% this year.

The property market has warmed up significantly, as indicated by the Centaline Index rising for over ten consecutive months. Furthermore, sales of private residential units in Hong Kong exceeded 10,000 in the first five months of the year, suggesting the full-year figure could hit 20,000.

HENDERSON LAND (HKEX: 00012)

Henderson Land began accelerating its project launches several months ago, and several of its developments this year have seen ideal sales performance.

Regarding the office sector, the chairman noted that the occupancy rate for The Henderson has reached 95%, while the under-construction Central Yards office development has already achieved an occupancy rate exceeding 70%. He expressed hope for even better occupancy rates in the coming months.

For retail, occupancy rates in community shopping malls are above 90%. During last month's "Golden Week" holiday, tourist spending increased by over 10% year-on-year, instilling considerable confidence in Hong Kong's retail outlook.

Henderson Land reduced its final dividend last year. The chairman explained that due to global uncertainties, considerations for dividend payouts must also take into account the company's long-term interests and the need to maintain stable financial health. However, given that property sales performance this year has been more favorable than last year, he expressed hope for a better dividend amount if the property market continues its positive trajectory.

An executive director of Henderson Land added that with property prices having risen just over 9%, he does not believe the market is overheating. He views the price increase as a reflection of the improving economy, noting that buyers for the company's new projects are primarily end-users.

Regarding the Parkwood residential project in Tai Po, which was converted last year into off-campus student accommodation recognized by The Chinese University of Hong Kong, the executive director stated that the lease with the university has concluded. Due to changes in student demand following the lease expiry, Henderson Land has taken back the project and plans to arrange for its sale, with an expected market launch in the second half of the year.