Huatai Securities: Continue to be optimistic about the revaluation opportunities of Hong Kong-located property developers with high market share in the Hong Kong market.

Huatai Securities pointed out that the Hong Kong real estate market is maintaining a recovery momentum. In terms of residential properties, house prices in November continued to rise both month-on-month and year-on-year, with rents hitting a new historical high. The leading indicator of property prices from Midland Realty in December still shows a moderate rise. The volume of private residential transactions in December saw a significant increase year-on-year, despite starting from a low base. The cumulative new home transaction volume in 2025 reached a 20-year high, while the second-hand home transaction volume hit a four-year high but has not yet surpassed the peak of 2021. In terms of commercial real estate, the retail industry's sales value from January to November stopped declining and started to rise year-on-year, leading to a significant narrowing of the month-on-month decline in retail rents in November. Huatai Securities continues to be optimistic about the revaluation opportunities for Hong Kong-listed property developers, which have a high market share in Hong Kong. There is a possibility of a "Davis Double-Click" under the beta trend of Hong Kong property recovery, while the high dividend yield also provides some support.