Recently, the Hong Kong Jockey Club has frequently made headlines. First, it was widely circulated that it hired HongKong Olympic fencer Jiang Minxi as its assistant manager. Then it was reported that they planned to sell Shan Kwong Road amid the current downturn in the real estate market. News about a private club converted into a residential project.

This series of actions made the Jockey Club the focus of attention. In fact, Hong Kong's real estate market is in a sluggish state, and there are even unfinished residential projects in the Quarry Bay area. If the Jockey Club, which has strong financial resources, can provide assistance, it will undoubtedly play an important role in stabilizing the property market.

Jockey Club Redevelopment Plan

According to public information from the Hong Kong Buildings Department, the Jockey Club has received approval in June this year to build a new building on the site at 48 Shan Kwong Road, Happy Valley. The land is currently a sports complex and the Jockey Club plans to convert it into a residential project. The project includes three 24-story residential towers and residents' recreational facilities, with a total floor area of ​​more than 480,000 square feet. It is expected to have a market value of more than HK$7 billion and a market price of approximately HK$14,500 per square foot.

The land at No. 48 Shan Kwong Road was originally the horse racing stable of the Jockey Club, and the title deed was officially granted in 1933. In 1987, following the relocation of the stables to Sha Tin, the land was converted into private club facilities and provisional planning permission was granted. Now, the Jockey Club has decided to change the use of the land from clubhouse to residential in order to respond to the Town Planning Board's request and implement its residential use.

Jockey Club's response

In recent years, the Town Planning Board has believed that the Jockey Club should actively implement the original intention of the land for residential use. Although the Jockey Club developed the site into a sports complex in the 1980s and obtained temporary planning permission, when it applied for renewal of the use this year, the Jockey Club Commitments have been made to develop the site into a residential project including sports and recreational facilities. However, detailed development proposals still require further study and planning, with demolition of existing buildings expected to begin in the second quarter of 2027.

Is there a chance that the Jockey Club’s abundant funds can save the property market?

Currently, Hong Kong's property market is in a downturn, with house prices falling by 25% in the past three years. Against this background, many large developers have begun to actively dispose of their inventory, selling at low prices or subletting projects to avoid long nights and nightmares. Nonetheless, Jockey Club's entry into the market at this time demonstrates its financial strength.

Looking at the latest annual report of the Jockey Club, we can see that as of the middle of last year, the net current assets of the Jockey Club reached HK$8.226 billion, and the total reserve plus standby fund reached HK$64.7 billion. This financial strength is comparable to the market capitalization of some Hong Kong-listed companies, such as Wharf Properties (01997.HK) and Chow Tai Fook (01929.HK). With its strong financial reserves, the Jockey Club is not only capable of promoting the development of new residential projects, but may even rescue unfinished projects in the Quarry Bay area. For example, Agile (03383.HK), which is facing financial pressure, has a residential site on Baijia Hill Road in Quarry Bay that has just been confiscated by the receiver and sold by Savills through an open invitation. The acquisition cost that year was NT$3.3 billion, according to market estimates. The current valuation of the land is about NT$1.8 billion to NT$2.7 billion. As long as the Jockey Club is willing to take action, it will not only benefit the community, but also provide a boost to the weak property market.

The Jockey Club’s real estate experience and social contribution

This is not the Jockey Club's first foray into the real estate market. As early as 2016, the Jockey Club successfully sold a piece of land next to the San Wai Military Camp in Fanling. The land area was 130,000 square feet and was sold for HK$156 million, setting a new high price for agricultural land in the same district. The Jockey Club seems to have Preliminarily grasp the appreciation potential of the northern metropolitan area. This action demonstrates the Jockey Club's keen sense and investment ability in the real estate market.

In addition to real estate investment, the Jockey Club also plays an important role in Hong Kong's social and economic life. The Jockey Club is Hong Kong's largest charity funding organization. As the only legal gambling institution in Hong Kong, the Jockey Club's operational capabilities are also extraordinary. Every year, its betting volume reaches 304.8 billion Hong Kong dollars, and the amount given back to society reaches 35.9 billion Hong Kong dollars. It is one of the largest single tax-paying institutions in Hong Kong.

The Jockey Club not only contributes huge tax revenue to the Hong Kong government through gambling tax and profits tax, but also makes huge contributions to public utilities such as education and medical care. In the past 10 years, the number of local charity and community projects supported by the Jockey Club Charities Trust has increased sharply by 88%, reaching 292 in 2021-2022. Donations in 2021-2022 increased significantly by 281% to HK$6.6 billion (including some one-time large donations). Analyzed by category, social services accounted for 49%; sports, recreation and culture accounted for 28%; education and training accounted for 14%; medical and health accounted for 8%. The Jockey Club donated HK$500 million during the SARS epidemic in 2003 to establish the Hong Kong Center for Health Protection; in addition, the Jockey Club also funded Hong Kong's first public golf course and the burn treatment center after the Pat Sin Ling fire.

The Jockey Club has a history of 140 years since its establishment. From its initial development as the "Royal-sanctioned Hong Kong Jockey Club" to today, it has always been an important force for the stability of Hong Kong society. With its abundant financial resources, the Jockey Club can not only influence the development of social public undertakings, but also have the opportunity to extend its influence to the property market.