Hong Kong developer New World Development has stepped back from consolidating three commercial sites in Causeway Bay due to high costs and patchy demand. The firm, which is selling assets to cut debt, said it would exercise prudence regarding costs, efficiency, and market conditions to deliver reasonable returns. Analysts describe a two-speed recovery in the city's commercial property market.
New World Development, which has been selling assets to reduce debt, said it would “exercise prudence as appropriate, having regard to cost and efficiency, as well as overall market supply and demand, with a view to delivering reasonable returns”.
The move reflects a two-speed recovery in Hong Kong’s commercial property market, according to analysts. Alkan Au, head of value and risk advisory for Hong Kong and Macau at JLL, said: “Currently, recovery is mainly in the core Central office leasing market; other office sectors and the broader retail market remain under pressure.”
The Causeway Bay project involved consolidating three commercial sites via compulsory sale. High costs and uneven demand are weighing on redevelopment decisions amid the patchy recovery.