20 September 2019

Wharf cuts mainland home prices amid cash flow woes, paper says

Wharf (Holdings) Ltd. (00004.HK) has been cutting home prices for its projects in eastern China, including Hangzhou and Changzhou, amid cash-flow pressures, the 21st Century Business Herald reported Thursday, citing business insiders. As of the end of 2013, the company’s land reserve in the eastern provinces accounted for more than 50 percent of its total land bank, but the property market in the region has been on a downturn for years, the report said. But one industry insider said the price cuts may be a strategic move to boost sales rather than a sign of tight liquidity. More developers are expected to join the wave of home price cuts, an unnamed developer was quoted as saying.

– Contact HKEJ at [email protected]