Lates News

UBS research report suggests that Hong Kong developers may have passed the worst of refinancing risks. As of December last year, the total amount of loans due for developers decreased by about 20% annually to HK$201 billion. In addition, the significant reduction in interbank lending rates in Hong Kong will drive residential transactions. However, due to high leverage, developers still hold 9,100 unsold units, and pricing issues persist. The bank estimates that Hong Kong residential prices will remain stable this year, and next year, with the stimulus of interest rate cuts, rental growth recovery, and a decrease in new supply, property prices are expected to rebound by 0 to 5%. The bank continues to favor Hong Kong developers Henderson Land and New World Development, raising their target prices by 12% and 2% to HK$29 and HK$96 respectively, while Sun Hung Kai Properties has its target price lowered from HK$10.5 to HK$9.8.