Issue: 02/2002

Signature Homes predicts steady luxury rents this year

SHKP established Signature Homes at the end of last year to handle deluxe residential leasing. It has the largest portfolio of top-end residential property in Hong Kong. Entering 2002, Signature Homes will build on its achievements, continuing to provide six-star service to tenants and strengthening its leading market position. The luxury leasing market is expected to remain steady this year, with rents in certain premium luxury flats rising 5% in the third or fourth quarter.

Signature Homes' Managing Director Iris Chiu believes that the demand for luxury leasing property will rise as multinational companies become more active after China's entry to the WTO.

Dynasty Court

63 Deep Water Bay Road

China's WTO entry spurs leasing

Signature Homes' Managing Director Iris Chiu said that by offering premium developments and the finest customer service, SHKP maintained occupancy levels as high as 96% last year, achieving better overall performance than the market.  Because of China's entry to the WTO, more leases were signed by companies in several growth industries in 2001. In 2000, electronic/high-tech companies made up 5% of the clientele and trading/logistics companies 14%. In 2001, the former increased to 13% and the latter rose to 20%. The petrochemical and medical/pharmaceutical industries each showed a 3% increase in the client mix last year. This phenomenon shows that companies in these sectors are developing business in Hong Kong more actively.

Room for increases in certain luxury flats

Regarding 2002, Iris said 'Several international securities firms recently predicted that the US economy would improve in the third quarter this year, which should help the global economic recovery. In addition, the effects of WTO membership should be more obvious this year and the supply of luxury properties for lease is limited. As such, we predict that rents will remain steady in the first half year with room to rise in certain luxury flats in the second half.' Because Hong Kong is an international financial center and the door to China, Ms Chiu has confidence in Hong Kong's luxury leasing market. Signature Homes will also take full advantage of these business opportunities to demonstrate its strength and achieve higher occupancy.

Portfolio to grow in size and prestige

Signature Homes' portfolio now covers 1.4 million sq ft, which will grow by another million sq ft with the addition of the serviced apartments in Phase Two of International Finance Centre and the Airport Railway Kowloon Station Development Packages 5, 6 and 7. Signature Homes properties are all well-known residential developments either owned by Sun Hung Kai Properties or leased under this new brand: Dynasty Court; Le Palais; 3 Repulse Bay Road; 127 Repulse Bay Road; Pacific View; The Harbourview; The Royal Tower; 8, 51, 55 & 63 Deep Water Bay Road; 37 Severn Road; 12 Shouson Hill Road; Hamilton Court; Coral Villas and The Royal Plaza Serviced Suites. The portfolio has a mix of luxury apartments, detached and semi-detached houses and serviced hotel suites.