New World is trying to navigate falling home prices and weak commercial rents just when it needs cash the most. The city’s most indebted major developer is under pressure to sell homes cheaply at a time of oversupply and persistently high interest rates. It priced its latest residential project State Pavilia 10% lower than other new projects in the North Point area to accelerate sales.
New World Development Co.’s woes persist as the company recorded a loss of HK$6.6 billion ($1.14 billion) for the first half after writing down the value of properties amid a prolonged real estate slump in Hong Kong.
The developer controlled by the billionaire Cheng family posted the loss in the six months ended Dec. 31 due to writedowns on its residential projects and commercial properties, according to a filing to the Hong Kong stock exchange Friday. That compares with profit of HK$502 million a year earlier.
