Annual Report 2016
35
Execu t i v e V i ce - Cha i rman ’s Repo r t
The property market of Hong Kong is closely related to
economic development. With negative factors including the
uncertainties surrounding the global economy, sales and
purchases of residential units had recorded a decline in
average transaction prices since the third quarter of 2015.
However, economic growth and inflation rate in the United
States were yet to be in such level as to support a steady
cycle of interest rate hike, which softened the speculation
about the frequency and magnitude of interest rate hike.
Home buyers’ sentiment for purchases changed from
conservative to positive, unleashing some of the demand for
home purchases.
Product quality and geographic advantages of particular
projects are the primary factors to consider for home
upgraders who have adequate monetary resources, following
the low-interest environment and appreciation of fixed assets
over the years. At present, concrete demand still remains for
first-hand residential dwellings, especially for competitive
products. That shall add to the sustainably-rising household
income and new buyer’s demand as well as the reasonable
level of mortgage-to-income ratios to support the healthy and
stable development of the residential property market of
Hong Kong.
The Artisanal Movement, which marks a new page for the
development of the New World brand, is a journey of
surpassing design and aestheticism and exploring unlimited
imagination. Original craftsmanship, blended with the spirit
of ongoing innovation and pursuit of excellence, attend to
every detail of customers’ needs and accomplish dreams
with passion. “We Create, We are Artisans”. The Group
believes that every member in New World is a craftsman,
ideally giving rise to a type of unique culture and quality of
modern life which is consistent with the cultural and artistic
essence as well as living attitude embodied in the Group’s
property projects.
For property development in Hong Kong, the Group launched
a series of finely-designed bespoke projects which received
overwhelming market responses. The Group is actively
working on the preparations for new project launches
including “THE PAVILIA BAY” in Tsuen Wan, Sai Yuen Lane
project in Sai Ying Pun, “MOUNT PAVILIA” in Clear Water Bay
and Heung Sze Wui Road project in Tuen Mun. It is expected
that a total saleable resources of more than 2,500 new
residential units will be available to the market.
For landbank in Hong Kong, the Group will carefully identify
and select development opportunities with reference to
future market supply and consumption preference of home
buyers. Taking into account the flexibility provided for under
the development conditions of the respective projects, the
Group will strive to secure unique land resources of premium
quality to support the Group’s sustainable development.
For property leasing in Hong Kong, in response to the
changing structure and consumption patterns of consumers,
the revolutionary formation of the world’s first museum retail
concept by K11 represented a ground-breaking initiative for
the retail market to depart from tradition and mingle art with
business, creating new consumption experience and brand
equity. Further, based on innovative mindset and the notion
of ongoing improvement, reshaping and revitalization of local
communities, the Group has built “D•PARK” into “the World’s
First Multiple Intelligence Kids Mall”, integrating in its retail
business the “Theory of Multiple Intelligence” developed by a
professor and psychologist of Harvard University of the United
States, thereby solidifying the tenant mix of the mall and
extending the reach of its retail presence with a multitude of
brands. For the redevelopment of New World Centre, located
at the core area of Tsim Sha Tsui promenade, construction is
being carried out as scheduled.
The Group has adhered to the key strategy of structure and
resources optimisation and continued to uplift the value of
the New World brand. The privatisation of New World China
Land by the Group will further consolidate resources, create
better synergy among businesses in Mainland China and
Hong Kong, and focus on the two core businesses in
Mainland China, namely the sale and leasing of developed
property projects. New World China Land will continue to
focus strategically on investing in key cities and developing
key projects with vast potential.
With its forward-looking vision, innovation mindset, bespoke
craftsmanship and spirit of excellence, the Group will
continue to strive to create differentiated products and
services of top quality, explore and generate bespoke and
unique experience for customers, so as to consolidate the
superior standing of the New World brand and maximize the
interests of our stakeholders.
Dr. Cheng Chi-Kong, Adrian
Executive Vice-chairman & Joint General Manager
Hong Kong, 21 September 2016
