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Kerry Properties is targeting Hong Kong real estate sales and may recycle funds from existing assets, capitalizing on a tighter housing supply in the city as mainland China's property market struggles. The developer acquired three residential sites in Hong Kong during the first half, totaling approximately 235,000 sq ft of gross floor area, and plans to stay active in government land auctions.

Calvin Tong, Hong Kong's director and general manager, stated that Kerry has bid for most government land auctions and MTR land tenders in recent months, and intends to continue investing actively in the future. The company's gearing ratio fell to 31.3% by the end of June, on track to reduce leverage to around 30% by year-end. Kerry is also leveraging Hong Kong's luxury market by converting a 62-unit Mid-Levels project from a rental asset to a potential sale, freeing up capital for further land acquisitions.

The company received numerous inquiries about selling the flats due to their prime location and views, but will only sell if the right price is offered. Hong Kong contributed 81% of Kerry's contracted sales in the first half, with La Marina, Mont Verra, and Blue Coast accounting for more than 90% of the revenue. The strong performance, along with sales carried over from previous years, resulted in a HK$5.9 billion backlog of Hong Kong sales, providing a solid revenue pipeline into the second half and 2027.

This timing helped decrease recognized Hong Kong property sales revenue by 59% to HK$2.54 billion in the first half. However, total revenue fell 33% to HK$6.67 billion, and underlying profit declined 9% to HK$782 million, while profit attributable to shareholders rose 20% to HK$735 million. In mainland China, contracted sales plunged 88% to HK$1.3 billion, attributed to projects in second- and third-tier cities taking longer than expected to sell.

Despite the decline, Kerry's chief financial officer, Suzanne Cheng, stated that they would not rush to cut prices due to the quality of their developments and stronger balance sheet. The company paid about 2.7 billion yuan (US$402 million) for a commercial site in Shanghai's Pudong district last month, citing its strong location and potential retail catchment, but remains selective on mainland opportunities, focusing on particularly attractive sites.