These two Hong Kong developers are set to release thousands of new homes this year to bolster profits

Hong Kong's two top developers revealed plans to sell more than 3,600 homes by the end of the year to support earnings as the outlook for the property market appears uncertain.
Sun Hung Kai Properties (SHKP), Hong Kong's biggest developer by market value, is upbeat about the market and said it would launch four projects with as many as 2,002 homes, not including unsold stock, this year.
New World Development (NWD), Hong Kong's fourth-largest developer by value, plans to release 1,604 homes from three new projects and unsold stock.
"The market is still dormant. Buyers are still holding back their purchases and we see the poor property sales results. A market recovery will not come that fast and to unload their upcoming units, developers have to set an attractive price," said Jeffrey Mak, property analyst at CGS-CIMB Securities.
He expects developers will follow the precedent set by Sino Land, which in December last year released homes at its Grand Central project in Kwun Tong at a 14 per cent discount to the prevailing market rate.
"We will see similar launches coming soon," Mak said referring to the aggressive price reductions needed to attract buyers in the current market environment.
However, an uptick in financial conditions since the start of the year could be signalling a rebound in sentiment, developers said.
"Hong Kong's stock market has increased by more than 10 per cent this year," Raymond Kwok Ping-luen, chairman and managing director at SHKP, said after the company reported on Wednesday that interim core earnings dropped 31 per cent because of a change in accounting policy. "Investment confidence is recovering."
Victor Lui, deputy managing director at SHKP, was cautiously optimistic, saying the market will be buoyant along with the launch of new projects over the next 19 months thanks to pent up demand among potential homebuyers.
"But the total volume of transaction will be a bit lower than 2018 while housing prices will remain flat," Lui said.
Adrian Cheng Chi-kong, executive vice-chairman of New World, was marginally upbeat about the market, saying home prices would increase by less than 5 per cent this year.
"There is still very strong...