New World Development Company Limited (“New World Development” or “the Group”; Hong Kong stock code: 00017) announced that the total contracted sales of its subsidiary, New World China, exceeded RMB13.4 billion in 2023. Total sales in the second half of the year (July to December) exceeded RMB7.5 billion, accounting for 50% of the Mainland sales target for the 2024 fiscal year. This year, the Group will roll out a number of landmark projects in tier-1 cities in the Mainland, which will continue to contribute to the Group's revenue and profit.
New Projects in Guangzhou, Shenzhen and Hangzhou Ready in the Pipeline
The Mainland property market has warmed to the Chinese government’s stimulus policies in recent years, including policies that allow home buyers to enjoy preferential loans for first-home purchases regardless of their credit record, relax housing purchase restrictions and support the redevelopment of urban villages. These favourable programmes have led to an increase in the sales of several popular projects of the Group. Among them is the Guangzhou New Metropolis • New Metropolis Mansion residential project, located in Panyu, Guangzhou, which achieved a stellar performance, with sales of over RMB1.5 billion on its opening day in March last year. The accumulated sales of the project have exceeded RMB4 billion since its launch, and it won a “Highly Commended” award in the PropertyGuru Asia Property Awards Best Mixed-Use Development (Mainland China) category, while New World China was awarded Best Developer (Mainland China).
The Group will launch a number of other headline projects in key mainland cities, including the landmark residential project THE SILLAGE, located in the central business district of Guangzhou’s White Swan Lake, and the commercial portion of the first phase of the New World Hangzhou Arts Centre. Moreover, the HAN ZONE commercial street of the MUSE OF RIVER commercial project in Wuhan is expected to open in mid-2024, while the New Metropolis in Guangzhou is scheduled to fully open in May 2025.
In addition, the Group’s first K11 flagship project in Mainland China, K11 ECOAST, in Prince Bay, Shenzhen, is expected to open at the end of this year. With a total gross floor area of 228,500 square metres, the project encompasses the K11 Art Mall, the K11 HACC multi-purpose art space, the K11 ATELIER office building, the Promenade, and more. Upon completion, it will serve as a new cultural-retail landmark along the waterfront and is set to become a new destination in the Guangdong-Hong Kong-Macao Greater Bay Area, contributing to the Group's revenue and recurring rental income.
Urban Renewal Projects in the Mainland Entering Harvest Time
The Group is currently invested in eight urban-renewal projects in the Mainland, all of which are located in core cities, such as Guangzhou and Shenzhen, with a total floor area of 2.7 million square metres, the conservative estimate of the saleable area amounts to RMB80 to RMB100 billion in value. The construction of the Longgang 188 Industrial Zone renewal project in Shenzhen commenced, and it is expected to go on the market in fiscal year 2025. Two other urban-renewal projects in Shenzhen, the Xili Industrial Zone project and the Guangming Guangqiao Food Factory project, have also entered the full development stage. The urban-renewal projects in the central area of Guangzhou are advancing as planned, signifying that the Group's urban-renewal business is entering its harvest time.
In Hong Kong, the city’s first large-scale one-stop retailtainment landmark, 11 SKIES, which is situated in Hong Kong International Airport’s SKYCITY, will be opened in phases between 2022 and 2025. It is set to significantly contribute to the Group’s sustainable rental income.
Abundant Land Bank for Future Development
New World Development believes that the gradual recovery of the property market will further unlock the advantages and value of the Group's land bank. New World Development's current land bank in the Mainland commands a total floor area of about 4.8 million square metres, about 60% of which located in the core metropolitan areas of the Greater Bay Area (GBA) and the Yangtze River Delta region. The Group's saleable resources in the GBA and the Yangtze River Delta in fiscal year 2024 and beyond are estimated to be as high as RMB 57 billion. In Hong Kong, the Group owns approximately 15 million square feet of farmland in the Northern Metropolis and is engaging in large-scale farmland conversion to significantly increase and unlock its value to meet housing demand in Hong Kong.