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<Research>Citi Expects Policy Address to Boost Sentiment for Developers; SHKP, HLD May Outperform in ST
Recommend 12 Positive 16 Negative 2 |
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The new Policy Address proposed a series of property market policies, including uniformly raising the maximum loan-to-value (LTV) ratio for all residential properties to 70% and adjusting the debt servicing ratio limit to 50%, according to a report from Citi. Citi believed that the proposed property market policies met market expectations, and that the relaxation of the maximum LTV ratio for residential properties would be favorable for investment demand, although it may take time to manifest. The broker maintained its forecast for a 10% drop in Hong Kong property prices this year, compared to a 7.5% decline in 9M24. It is expected that property prices may bottom by mid-next year. In addition, the broker anticipated the Policy Address to create a positive environment for developers, especially those with luxury properties. Coupled with interest rate cuts, transaction volumes and new project launches in October have rebounded. Continuing to use dividends and yield as stock selection criteria, the broker expected that SHK PPT (00016.HK) and HENDERSON LAND (00012.HK) may outperform in the short term (ratings and TPs are detailed in a separate table). AAStocks Financial News |
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