CITIC Securities research indicates a stable overall performance for 15 Hong Kong property developers in 2025. Two categories of firms are leading the improvement in profitability and dividends: top-tier Hong Kong developers and those with strong operational and asset management capabilities. While 2025 settlement profits were pressured by the earlier market downturn, sales have grown steadily amid the market recovery. Since late May 2025, momentum in Hong Kong's property market transaction volume and prices has gradually strengthened, significantly benefiting sales for leading developers with ample land banks. This sales recovery is expected to transmit to financial performance, indicating a clear trend of operational and earnings improvement. In 2025, operating profit from investment properties accounted for 84.5% of the sector's core net profit attributable to parents, forming a solid foundation. The outlook is positive for the continued operational and performance enhancement of leading players in Hong Kong's real estate market.
The key points from CITIC Securities are as follows: Signs of improvement are emerging in Hong Kong property firms' performance, with two types of companies seeing earlier profit and dividend enhancements. Overall, the 15 developers reported stable 2025 results, with combined revenue of HKD 318.2 billion, up 1.7% year-on-year, and combined core net profit attributable to parents of HKD 86.9 billion, down 1.4%. Performance varied among firms, with two groups showing earlier profit improvement and stable-to-increasing dividends: top-tier Hong Kong developers and those excelling in operations and asset management.
Steady sales growth and ample land reserves point to a clear upward trend for leading developers' operations. While 2025 settlement profits were under pressure from the prior market decline, the 13 developers reported combined settlement revenue of HKD 126.1 billion, a 14.6% increase, though combined settlement operating profit fell 19.8% to HKD 21.3 billion. Sales grew steadily in 2025, with the seven firms disclosing data reporting combined Hong Kong contract sales of HKD 85.5 billion, up 24.4%. The strengthening momentum in Hong Kong's property market since late May 2025 has notably benefited project sales for leading developers with substantial land banks. This sales recovery is set to flow through to financial results, confirming the positive trend for operations and earnings.
Investment properties provide a stable earnings foundation. In 2025, the 15 developers' investment properties generated combined revenue of HKD 103.1 billion, down 2.2%, and combined operating profit of HKD 73.4 billion, down 4.1%. This operating profit from investment properties constituted 84.5% of the total core net profit attributable to parents. Operationally, Hong Kong developers generally prioritized volume over price for investment properties. In 2025, rental income per square foot for investment properties declined, while retail property occupancy rates remained high, and office occupancy rates showed some recovery.
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