Hang Lung flags ‘tough slog’ for property, as it looks to mainland malls for growth

Hong Kong developer Hang Lung Properties is pinning its medium-term outlook on a recovery in mainland Chinese consumption, even as it warned that both the city’s and China’s property markets remain under strain.The commercial landlord, residential developer and hotel owner said it expected a “tough slog” for the broader sector despite signs of improvement in operating conditions, particularly in the second half of the year.Net profit attributable to shareholders fell 16 per cent to HK$1.8 billion (US$231 million) in 2025, while revenue declined 11 per cent to HK$9.95 billion, according to its latest results.“There’s pressure across the board,” Adriel Chan, chairman of Hang Lung Properties and its parent, Hang Lung Group, said at a post-results briefing on Friday.He added that he did not expect a rapid or broad-based rebound across property segments.“The best hope we have is probably in mainland retail,” Chan said, citing the group’s efforts to upgrade tenant mixes and introduce new and more compelling brands across its shopping malls.Rental revenue from its mainland mall portfolio rose 1 per cent, with occupancy climbing by two percentage points. Hang Lung operates 11 retail properties across mainland China, including projects such as Plaza 66 in Shanghai and Palace 66 in Shenyang.