HK - Housing 04 (Apr 16 - Jun 24)

[winston]

Flat prices hit 8-year low in market shocker

by Cici Cao

Road King Infrastructure (1098) yesterday launched 70 flats at Mori in Tuen Mun at an average price of HK$9,175 per square foot after discounts - an eight-year low for new home prices in the city.

The average price is also 17 percent lower than the first batch in September last year.

Source: The Standard

https://www.thestandard.com.hk/section- ... et-shocker

[winston]

<Research>Citi More Bearish on HK Property Sector, Predicting 3% Drop in Home Prices This Yr

Citi has released a research report indicating a more pessimistic view on Hong Kong's property sector compared to November last year.

The broker predicted a 3% decline in Hong Kong home prices this year given a record high supply and prolonged high interest rates that may prompt developers to accelerate price cuts to clear inventory.

Citi favored stocks with free cash flow and visible dividends per share, while companies with higher capital expenditure, debt, or retail exposure may lag behind.

The broker's top picks were HENDERSON LAND (00012.HK) and SINO LAND (00083.HK).

In addition, CK ASSET (01113.HK) 's largest non-Hong Kong or Mainland China asset portfolio might surprise the market.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

<Research>HSBC Research: HK Property Recovery Takes Time; SHKP, KERRY Preferred

Headwinds such as high mortgage rates and increased completions will pose challenges to the Hong Kong real estate sector in 2025, HSBC Global Research said in its report.

Property developers are likely to focus on deleveraging.

Among local real estate stocks, SHK PPT (00016.HK) and KERRY PPT (00683.HK) were preferred by the broker, each with a Buy rating and target price of $116 and $19.

Hong Kong's real estate sector is still facing challenges, according to the report. Even though the rate-cutting cycle started in 2024, mortgage rates are still high and still above rental yield.

Prospective buyers may not have enough incentives to enter the market and tend to rent rather than buy.

Related News: UBS Survey Reveals Improved Confidence Among HK Households; HENDERSON LAND/ SHK PPT/ PCCW/ CKI HOLDINGS/ CATHAY PAC AIR/ SANDS CHINA LTD/ BOC AVIATION Preferred

HSBC Global Research noted that some developers are better positioned due to improved revenue growth prospects.

SHKP was deemed to return to profit growth on the ride of recurring rental income growth and strong property sales execution.

KERRY PPT will be nourished by profit recovery from luxury property sales in Hong Kong and Shanghai.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

Hong Kong’s lived-in home prices complete third year of decline in worst run since 2003

Prices of second-hand homes fell in December, snapping a two-month rebound, and have dropped 27 per cent over the past three years

Hong Kong’s lived-in home prices fell in December to complete three straight years of setbacks, as geopolitical and inflation risks clouded the prospects for more interest-rate cuts by global central banks.

Prices in the secondary market declined 0.65 per cent last month, following gains in October and November, according to data published by the Rating and Valuation Department.

Prices weakened 7.13 per cent for the year, following a 15 per cent drop in 2023 and a 7 per cent loss in 2022.

Source: SCMP

https://www.scmp.com/business/article/3 ... pe=section