Understanding the Market | Hong Kong Property Stocks Generally Decline, Citi Remains Bearish on Hong Kong Real Estate Industry, Expects a 10% Decline in Property Prices for the Whole Year

Hong Kong property stocks are generally declining. Citigroup pointed out that developers are eager to push inventory at reasonable prices, but demand still depends on the current stagnant interest rates, hence maintaining a forecast of a 10% decline in Hong Kong property prices for the whole year. As of the time of writing, Swire Properties fell by 4.29% to HKD 15.18, Henderson Land fell by 3.8% to HKD 7.84, and Cheung Kong Group fell by 1.75% to HKD 33.75. Citigroup released a research report stating that they remain bearish on the Hong Kong property industry due to reasons such as deglobalization, slowdown in the performance of the four major pillar industries before new driving forces emerge, high real interest rates due to economic weakness and deflation, the possibility that Hong Kong mortgage rates may not follow a decrease immediately after the Fed's rate cut, the impact of reduced tourist spending on the retail industry with a decrease in average spending per visitor, rising pressure on office space supply due to a rebound in vacancies, reduced demand after layoffs, and the relaxation of residential measures triggering short-term sales impulses, with more new properties being pushed at reasonable prices