Looking ahead to 2025, there may still be some downward space in the Hong Kong property market, but signs of a bottom seem to have emerged. The bank expects office and retail rents to continue to decline by 5% in 2025, with retail sales also expected to drop by 5%.
According to the Zhitong Finance APP, Morgan Stanley published a report stating that looking ahead to 2025, there may still be some downward space in the Hong Kong property market, but signs of a bottom seem to have emerged. The bank expects office and retail rents to continue to decline by 5% in 2025, with retail sales also expected to drop by 5%. At the same time, it is anticipated that the residential market prices will remain stable in 2025, with a 5% decline in the first half and a positive turnaround in the second half, as some bullish policies will help prices rise.
From the perspective of real estate companies, Morgan Stanley believes that although there is valuation support, the underperformance compared to the market is expected to continue. In terms of ratings, Morgan Stanley has given 'Shareholding' ratings to Link REIT (00823) and SINO LAND (00083), with their dividend yields being 7.8% and 7.3%, respectively; companies rated 'Shareholding' include WHARF REIC (01997) and HYSAN DEV (00014), with their dividend yields being 5.8% and 8.6%, respectively. Initially, WHARF REIC and HYSAN DEV were rated 'Shareholding' and 'In line with the market', respectively.
