Citigroup: The fundamental outlook of Hong Kong's real estate sector is improving, with preferred picks being New World Development, Cheung Kong Group, and Swire Properties.

Citi released a report stating that Hong Kong property stocks are expected to benefit from cost savings on interest in the fiscal year 2025, and also believes that the guidance provided by listed companies for the fiscal year 2026 is very encouraging: due to the expected increase in property sales deposits returns brought about by years of rising property prices, core office buildings benefit from leasing momentum and smaller rent reductions, as well as a positive return of high-end retail from the mainland. The bank believes that the recent pullback in Hong Kong property stocks this month is likely due to profit-taking after the uptrend, as well as some selling off due to uncertainties in interest rates and the macroeconomy. However, the industry fundamentals are turning stronger this year, and supplementary investments for medium to long-term growth are expected to accelerate. The bank selects stocks showing growth in earnings per share and shareholder returns, with preferred choices being New World Development, Cheung Kong Group, and Swire Properties.