Understanding the Market | Hong Kong Property Stocks Generally Decline, Citi Remains Bearish on Hong Kong Real Estate Industry, Expects a 10% Decline in Property Prices for the Whole Year
Hong Kong property stocks are generally declining. Citigroup pointed out that developers are eager to push inventory at reasonable prices, but demand still depends on the current stagnant interest rates, hence maintaining a forecast of a 10% decline in Hong Kong property prices for the whole year. As of the time of writing, Swire Properties fell by 4.29% to HKD 15.18, Henderson Land fell by 3.8% to HKD 7.84, and Cheung Kong Group fell by 1.75% to HKD 33.75. Citigroup released a research report stating that they remain bearish on the Hong Kong property industry due to reasons such as deglobalization, slowdown in the performance of the four major pillar industries before new driving forces emerge, high real interest rates due to economic weakness and deflation, the possibility that Hong Kong mortgage rates may not follow a decrease immediately after the Fed's rate cut, the impact of reduced tourist spending on the retail industry with a decrease in average spending per visitor, rising pressure on office space supply due to a rebound in vacancies, reduced demand after layoffs, and the relaxation of residential measures triggering short-term sales impulses, with more new properties being pushed at reasonable prices
According to the information from the Wise Finance APP, Hong Kong property stocks are generally declining. Citi pointed out that property developers are eager to push inventory at reasonable prices, but demand still depends on the current stagnant interest rates, thus maintaining a forecast of a 10% decline in Hong Kong property prices for the whole year. As of the time of writing, Swire Properties (01972) fell by 4.29% to HKD 15.18, Henderson Land (00101) fell by 3.8% to HKD 7.84, and Cheung Kong Property (01113) fell by 1.75% to HKD 33.75.
Citi released a research report stating that they remain bearish on the Hong Kong property industry due to reasons such as deglobalization; the slowdown in the performance of the four major pillar industries before new driving forces emerge; a weak economy and deflation leading to high real interest rates; after the Fed rate cut, Hong Kong mortgage rates may not follow suit immediately; the retail sector is affected by reduced tourist spending, with average spending per visitor decreasing; office buildings face pressure from rising supply, but reduced demand after layoffs; relaxation of residential measures triggers short-term sales impulses, with more new properties being pushed at reasonable prices