---
title: "Bank of America Securities expects Hong Kong property developers to be more cautious about price increases, as most developers' earnings per share have already bottomed out"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/281302041.md"
description: "Bank of America Securities pointed out that despite the tense situation in the Middle East, Hong Kong property developers raised prices in March, but the number of new units launched was limited and concentrated in urban areas. Considering the volatility of the stock market, developers will be more cautious about price increases. The bank believes that the performance of property stocks and conglomerates last year met expectations, and it is expected that the earnings per share of most developers have bottomed out. The target price adjustment range is between -11% and +14%, recommending Sun Hung Kai Properties and Link REIT, maintaining a buy rating, while maintaining an underperform rating for New World Development and MTR Corporation"
datetime: "2026-04-01T04:15:45.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/281302041.md)
  - [en](https://longbridge.com/en/news/281302041.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/281302041.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/281302041.md) | [繁體中文](https://longbridge.com/zh-HK/news/281302041.md)


# Bank of America Securities expects Hong Kong property developers to be more cautious about price increases, as most developers' earnings per share have already bottomed out

Bank of America Securities published a research report stating that although geopolitical tensions in the Middle East are escalating, Hong Kong property developers continued to raise prices in March. However, most of the newly launched batches have a smaller number of units and are concentrated in urban areas. Considering the recent stock market volatility, developers may adopt a more cautious attitude towards price increases, especially for large new projects.

The bank believes that the performance of property stocks and conglomerates last year generally met expectations, with most profit differences arising from project accounting timing. After profit-taking in the sector, the dividend yield of related stocks has become more attractive, and the earnings per share of most developers should have bottomed out last year. The bank has lowered its earnings per share forecast for 2026 to 2027 by 0% to 2%, with target prices for stocks adjusted down by 11% to up by 14%.

The bank is optimistic about Sino Land (00083.HK) and Link REIT (00823.HK). The former has a solid net cash position, a dividend yield above the average level, and can capture the recovery of the residential market, maintaining a target price of HKD 13.3; the latter has potential asset disposals and share buybacks, maintaining a target price of HKD 44.

Investors with a higher risk appetite may pay attention to Henderson Land (00012.HK) and Swire Properties (01972.HK). The former has an average annual compound growth rate of 9% in earnings from 2025 to 2028 and has potential for agricultural land recovery; it has a target price of HKD 34.4. The latter has a rich project portfolio and stable shareholder returns; its target price has been slightly raised from HKD 29 to HKD 30. All of the above stocks are rated as "Buy."

At the same time, the bank reiterated its "Underperform" rating on New World Development (00017.HK) and MTR Corporation (00066.HK), believing that the former has high leverage and financing risks, with a target price raised from HKD 4.8 to HKD 5.2. The latter has high capital expenditures, maintaining a target price of HKD 27

### Related Stocks

- [MTR CORPORATION (00066.HK)](https://longbridge.com/en/quote/00066.HK.md)
- [NWDS CHINA (00825.HK)](https://longbridge.com/en/quote/00825.HK.md)
- [LINK REIT (00823.HK)](https://longbridge.com/en/quote/00823.HK.md)
- [TST PROPERTIES (00247.HK)](https://longbridge.com/en/quote/00247.HK.md)
- [NEW WORLD DEV (00017.HK)](https://longbridge.com/en/quote/00017.HK.md)
- [SINO LAND (00083.HK)](https://longbridge.com/en/quote/00083.HK.md)

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