Market Insight | Hong Kong Property Stocks Generally Rise, Rate Cut Expectations Boost Homebuying Sentiment, Weekend Top 10 Estates in Hong Kong Achieve Approximately Half-Year High in Transactions
Hong Kong property stocks generally rose, with WHARF REIC up 4.1% and CK ASSET up 4.06%. According to data from Centaline Property, the transaction volume of the top ten housing estates in Hong Kong hit a six-month high, recording 15 transactions over the weekend, an increase of 87.5% from the previous weekend. The market expects the Federal Reserve to cut interest rates, boosting home buying sentiment. Morgan Stanley predicts that the Hong Kong residential market will benefit from the rate cut, with property prices rebounding by 5% next year after an 8% decline this year
According to the information from the Wise Finance APP, Hong Kong property stocks are generally rising. As of the time of publication, WHARF REIC (01997) rose by 4.1% to HKD 22.85; CK ASSET (01113) rose by 4.06% to HKD 32.05; New World Development (00017) rose by 2.52% to HKD 6.92; Link Real Estate Investment Trust (00823) rose by 2.09% to HKD 39.
On the news front, the latest data from Midland Realty shows that 15 transactions were recorded in the top ten housing estates in Hong Kong over the weekend, a significant increase of 87.5% from 8 transactions last weekend, reaching a new high in about half a year since late March this year. Yung Kee Holdings' Vice Chairman and President of the Residential Department in the Asia-Pacific region, Chen Wing-kei, stated that the market generally expects the Fed to announce a rate cut at the interest rate meeting. Recently, the market sentiment has continued to improve, and the property market sentiment is also positive. Many buyers are taking advantage of the rate cut to absorb the market before the cut, leading to a significant increase in property viewings and transactions. It is believed that the property market will continue to warm up after the rate cut.
The current market focus is on this week's Fed interest rate decision, with traders continuing to increase their bets on a 50 basis point rate cut by the Fed. Morgan Stanley predicts that compared to retail and office space, Hong Kong's residential market will benefit more from the U.S. rate cut. It is expected that Hong Kong residential property prices will rebound by 5% next year, while they will fall by 8% this year, a 30% drop from the peak. The bank estimates that for every 100 basis point drop in the Hong Kong Interbank Offered Rate, the average profit of Hong Kong property developers will increase by 5%