Equity Analysis /
Hong Kong

HK : Property - Overall - Strong demand outweighs rate hike

    Raymond Cheng
    Raymond Cheng

    Head of Hong Kong Research

    Contributors
    Steven MAK
    Will Chu
    CGS-CIMB
    16 May 2022
    Published by

    We have seen a recovery in transactions for the residential market since Mar 22 after social distancing restrictions were loosened. We expect HK’s home mortgage rate to stay below 3% for the rest of 2022 (1.6% currently for HIBOR-based rate), despite the spike in US interest rate. Despite moderately higher mortgage rates ahead, we believe that home prices should remain stable on huge demand from local and mainland China. We are constructive on the residential market and SHKP and HLD are our preferred developers. Among retail landlords, we like Link REIT.