HENDERSON LAND(00012) Lee Shau Kee: Hong Kong's private housing transactions are expected to reach 20,000 units this year, with prices expected to rise by 5% to 10%.

Henderson Land (00012) Chairman and Managing Director Lee Shau Kee stated that the property market in Hong Kong has significantly improved this year, with a chance of selling around 20,000 private units. He expects property prices to rise by 5% to 10% this year. Lee Shau Kee mentioned that the property market has heated up significantly, with the Centaline index rising for more than ten consecutive months. In addition, over 10,000 private units have been sold in the first five months of this year, with a chance of reaching 20,000 units for the whole year. Henderson Land has started to speed up its property launches several months ago, and the sales of several projects this year have been ideal. Regarding office buildings, he mentioned that The Henderson has reached a rental rate of 95%, while the Central Yards office building under construction has a rental rate of over 70%, with hopes of better rates in the coming months. In terms of retail, Henderson's shopping malls have a rental rate of over 90%, and during the "May Golden Week" holiday last month, tourist spending increased by over 10% year-on-year, giving confidence in the retail prospects in Hong Kong. Lee Shau Kee mentioned that Henderson reduced its final dividend last year due to the uncertain global situation. When considering dividend payments, the long-term interests and financial stability of the company must also be taken into account. However, based on the better sales performance this year compared to last year, if the property market continues to improve, they hope to have a better dividend amount. Henderson Executive Director Martin Wong added that property prices have only increased by over 9% currently, and he does not believe the property market is overheated. The increase is just a reflection of the economic recovery. Their new projects are mainly targeting end-users. The residential project Parkwood in Tai Po Mei Sun Lane was converted into student accommodation recognized by The Chinese University of Hong Kong last year. Wong mentioned that the lease with the university has ended, and due to changes in student demand, Henderson will take back the project after the lease expires and arrange for its sale. They expect to launch it in the market in the second half of the year.