(Bloomberg) -- Sun Hung Kai Properties Ltd., Hong Kong’s largest developer, reported a 1.7% increase in annual profit as it began to recover from the pandemic and political tensions that weighed on business.

Underlying earnings, which exclude property revaluations, rose to HK$29.9 billion ($3.8 billion) in the year ended June 30, Sun Hung Kai said in a filing Thursday. That compared with the average estimate of HK$30.6 billion from 13 analysts surveyed by Bloomberg.

The pandemic has hurt Hong Kong’s property companies, particularly in retail and hospitality as tourism slumped. Still, Sun Hung Kai is set to benefit from the heated residential market in the city, where home prices hit a record high last month on limited supply, outsized demand and low borrowing costs. 

New home sales have also picked up in recent months, with Sun Hung Kai’s Wetland Seasons Bay in the Tin Shui Wai area being one of the most popular projects. The developer sold all of the 285 units available for purchase on Saturday.

Shares of Sun Hung Kai have risen 9.6% this year, after dropping 16% in 2020. 

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