Hong Kong property stocks performed weakly as Wharf REIC (01997) fell 3.38%, Sino Land (00083) fell 1.84%, Hysan Dev (00014) fell 1.78%, Henderson Land (00012) fell 1.42%, New World Dev (00017) fell 1.46%.
China International Capital Corporation released a research report stating that Hong Kong's economy experienced moderate growth in Q1 2024, with GDP increasing 2.7% YoY and 2.3% QoQ. After the Hong Kong government's cancellation of the property acquisition tax, the volume of Hong Kong residence transactions in Q1 showed a significant rebound compared to the previous quarter (with a higher MoM increase of 54% for new residences), and the decline in housing prices also began to show signs of stabilization (with both small and large units declining by -3% MoM). The policy's short-term stimulating effect on the demand side is gradually emerging, but considering the overall situation, it may still be difficult to determine a major turning point in the current cycle.
Mr. SHIH Wing Ching, the founder of Midland Realty, said that with the change in expectations for a U.S. interest rate cut and local banks' conservative valuation, pressure has been put on housing prices in Hong Kong. It is estimated that housing prices will continue to be under pressure in the short term, but the decline is expected to be slight and not to experience a significant drop.