Lyon: Hong Kong property prices are expected to rise by 5% next year, with China Resources Land (01109) being the top choice.

Lyon released a research report predicting that Hong Kong property prices will rise by 5% in 2026, outperforming major mainland cities. The recommended stocks are CHINA RES LAND (01109), HYSAN DEV (00014), and LINK REIT (00823). The report pointed out that Hong Kong property prices have rebounded by 6.4% from the low point in March this year, driven by consecutive interest rate cuts in the United States and declining interest rates. At the same time, rental yield has increased, reflecting strong rental demand. Additionally, the pressure from developers and owners to sell has significantly eased, leading to a noticeable improvement in supply and demand relationship. The volume of second-hand residential transactions in major mainland cities has increased year-on-year, indicating that property demand in these cities is stabilizing. Meanwhile, inventory in major cities has returned to normal levels, the land market is hot, and land transfer fees have increased year-on-year, mainly driven by the supply of high-quality land plots.