Lan Yue, located in Cheung Chau, Lantau Island, boasts a prime waterfront view and has obtained the occupation permit. The development consists of 2 standalone houses, each with a practical area of approximately 5,650 to 5,670 square feet and featuring 5 bedrooms.
Lan Yue has already begun receiving inquiries from buyers, including those from Singapore and Mainland China, and plans to sell via tender. The other project, Po Yao, situated on Nam Road, Cheung Chau, comprises 25 townhouses with practical areas ranging from approximately 3,000 to 5,000 square feet per unit. The project has completed its main construction and is striving to obtain the occupation permit, with plans to launch in the form of completed buildings.
In addition to Lan Yue and Po Yao, the New World Group also owns another 3 completed residential projects primarily used for long-term rental assets. Among them, No. 15, Pik Sha Road, Clear Water Bay, with 8 townhouses ranging from 2,074 to 7,050 square feet, has been fully leased out, generating rental income exceeding HK$3 million per month.
Furthermore, No. 1, Po Tsui Wan, in Peng Chau, is a project garnering market attention, offering 40 distinctive units with practical areas ranging from 423 to 1,686 square feet, renting at approximately HK$30 per square foot, mainly attracting overseas individuals and professionals from the Hong Kong Island district as tenants.
Given the strong interest in the project, Chen Siyuan announced the conversion of 10 units for sale. By the end of 2023, 3 units were sold upon completion, raising over HK$60 million. The decision to release more units in the future will depend on market response. Additionally, another rental project in Peng Chau, Yue Chen Wan, offers 28 units with practical areas ranging from 370 to approximately 920 square feet, with no resale plans currently in place.
Apart from completed projects, the New World Group also owns a plot of land near Zhangshu Beach Road, Tai Po Kau Section of Tai Po Road, currently in the planning stage. It is expected to offer over 100 units, including apartments and townhouses.
With the arrival of a comprehensive customs clearance and interest rate hike cycle in early 2023, buyers have adopted a wait-and-see attitude, turning to the rental market, resulting in unusually active real estate market conditions. However, Chen Siyuan remains optimistic about the 2024 property market. He expects that if the Federal Reserve reduces interest rates and the government may implement stimulus measures, affluent buyers with abundant funds in Hong Kong may shift from the rental market to the purchasing market, thereby driving property prices up. The performance of luxury real estate markets is expected to surpass that of medium and small units.
Chen Siyuan expressed confidence in the Hong Kong property market and stated that the company has sufficient funds to acquire new land parcels. He particularly favors low-density residential projects and hopes to acquire land with beautiful mountain and sea views. This indicates that the New World Group will continue to develop in the real estate market and provide customers with more high-quality residential options.