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<Research>HSBC Research: HK Property Recovery Takes Time; SHKP, KERRY Preferred
Recommend 9 Positive 22 Negative 11 |
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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. 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. AAStocks Financial News |
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