HK property developers look to mainland

The heating property market in the Chinese mainland is attracting developers in Hong Kong. Many have not only tapped into the first tier cities, but are also increasing investment in second tier ones.

Major developers, including Cheung Kong Holdings, Henderson Land Development and New World China Land, are all optimistic about Mainland prospects, especially in second tier cities. New World China Land says in 2009, 45 percent of its growth in the Mainland came from second tier cities. Henderson is also planning to increase its land repertory in the Mainland to 14 million square meters, nearly on par with major mainland developers. But Hong Kong developers have also expressed concerns over skyrocketing housing prices. Cheung Kong and New World China Land also say the central government's macro policies will help stabilize the market and boost its sustainable development.