Hong Kong Chief Executive Li Jiachao released the 2024 Policy Address yesterday, announcing a series of measures to promote the economy. Lyon published a research report stating that he welcomed the relaxation of mortgage rates and measures to attract talent. However, he believes that the impact of the measures on the property market may be limited, because the complete withdrawal of the property market in February this year only brought a brief boost. Considering that the return on rent is still lower than actual interest rates and US Treasury yields, I believe investors will not choose to return to the property market. The bank also pointed out that in the current situation where the economy is weak, the high interest rate environment and the inventory level of residential units is still high, developers tend to use a low price strategy, so it currently predicts that property prices will fall by another 5%, and will not bottom out until the second half of next year. Sun Hung Kai Properties has given a “outperforming the market” rating, with a target price of HK$70.5; the preferred stocks are Swire Properties and Lingzhan Real Estate Fund, both rated “outperforming the market”.

Hong Kong Chief Executive Li Jiachao released the 2024 Policy Address yesterday, announcing a series of measures to promote the economy. Lyon published a research report stating that he welcomed the relaxation of mortgage rates and measures to attract talent. However, he believes that the impact of the measures on the property market may be limited, because the complete withdrawal of the property market in February this year only brought a brief boost. Considering that the return on rent is still lower than actual interest rates and US Treasury yields, I believe investors will not choose to return to the property market. The bank also pointed out that in the current situation where the economy is weak, the high interest rate environment and the inventory level of residential units is still high, developers tend to use a low price strategy, so it currently predicts that property prices will fall by another 5%, and will not bottom out until the second half of next year. Sun Hung Kai Properties has given a “outperforming the market” rating, with a target price of HK$70.5; the preferred stocks are Swire Properties and Lingzhan Real Estate Fund, both rated “outperforming the market”.