Market Insight | Most Hong Kong property stocks rise, with renewed expectations of interest rate cuts rekindling the real estate atmosphere. Over the weekend, transactions in the top ten housing estates in Hong Kong increased by 80% compared to the previous period

According to the latest information from Zhitong Finance and Economics APP, most Hong Kong property stocks have risen. As of the time of publication, WHARF REIC (01997) rose by 5.36% to HKD 19.64; NEW WORLD DEV (00017) rose by 5.2% to HKD 7.48; LINK REIT (00823) rose by 2.68% to HKD 34.45; SHK PPT (00016) rose by 2.52% to HKD 69.2.

On the news front, the cooling of the U.S. job market in July has increased market expectations for a rate cut by the Federal Reserve in September, as well as expectations for the number of rate cuts by the Federal Reserve throughout the year. A research report from UBS pointed out that most Hong Kong property companies currently have dividend yields of 7%-10%, providing a certain degree of buying opportunities. The market expects the Federal Reserve to cut interest rates this year. When the market is optimistic about rate cuts, companies with sustainable dividend yields and attractive valuations are expected to outperform the broader market.

In addition, the latest data from Midland Realty shows that the transaction volume of the top ten housing estates in Hong Kong increased by 83% over the weekend, reaching a new high in 14 weeks. Specifically, these top ten housing estates recorded a total of 11 transactions over the weekend. Midland Realty analysis believes that the market generally expects a high probability of a rate cut in the United States next month, reigniting the property market sentiment and attracting many long-awaited buyers back into the market