Damo: Residential property prices are expected to rise 10% this year, and Xindi (00016), Hengdi (00012) and Changshi (01113) are preferred by real estate stocks

The Zhitong Finance App learned that Morgan Stanley released a research report stating that Sun Hung Kai Properties (00016) and Henderson Land (00012) were the first to be selected. The target prices were raised from HK$105 and HK$30 to HK$120 and HK$36 respectively, all of which received an “increase in holdings” rating. Meanwhile, Changshi Group (01113) is also one of the bank's top choices. The rating was upgraded from “synchronizing with the market” to “increasing holdings”, and the target price was raised from HK$39 to HK$47.

The bank expects residential property prices to rise by 10% this year, mainly driven by factors such as increased demand from mainland buyers, inventory consumption, limited supply, and declining interest rates. Furthermore, the influx of talent is driving strong rent performance, which means higher yields and positive spread returns, which also stimulates more investment demand; the bank expects rent to increase by 5% this year. At the same time, the wealth effect generated by the rise in the Hang Seng Index also helps support property prices.