Date: October 7, 2024
Broker Name: CGS International Securities

Successful Project Launch

Emperor International (Emperor Int’l) achieved a significant milestone in the Hong Kong property market with the successful launch of One Jardine’s Lookout in Happy Valley. Over the weekend of October 5-6, 2024, the company sold all 85 units that were launched, achieving a 100% sell-through rate. This highlights the strong demand for luxury residential properties in prime locations and reflects the company’s successful pricing and marketing strategy.

Prime Location Advantage

One Jardine’s Lookout is located in the prestigious Happy Valley area, known for its high-end residential appeal. Emperor Int’l’s ability to sell out the entire project in a short period demonstrates the strong market appetite for luxury properties in sought-after locations, even amid broader market uncertainties.

Market Conditions

The success of this project was aided by favorable market conditions, including a 25-basis-point cut in Hong Kong’s residential mortgage rates on September 19, 2024. This rate cut has improved buyer sentiment and made mortgage financing more attractive, which, in turn, boosted demand for luxury residential properties like those offered by Emperor Int’l.

Financial Impact

The 100% sell-through rate at One Jardine’s Lookout is expected to contribute positively to Emperor Int’l’s revenue and cash flow in the near term. This success underscores the company’s ability to execute its projects effectively in a competitive market and capitalize on favorable financial conditions.

Risks

While Emperor Int’l has seen success with One Jardine’s Lookout, there are potential risks going forward. These include the possibility of a slower-than-expected reduction in mortgage rates, which could affect buyer affordability, as well as broader economic risks such as rising unemployment, which could dampen demand for luxury properties.

Conclusion

Emperor Int’l’s achievement of a 100% sell-through rate at One Jardine’s Lookout reinforces its strong market position in the luxury residential segment of Hong Kong. The company’s strategic focus on prime locations and effective execution of sales launches positions it well for continued success in the luxury property market.