--- title: "Understanding the Market | Hong Kong property stocks broadly decline as concerns over potential interest rate hikes in the U.S. resurface; Bank of America Securities predicts a slowdown in property price increases" type: "News" locale: "en" url: "https://longbridge.com/en/news/290522861.md" description: "Affected by the renewed concerns over potential interest rate hikes in the United States, Hong Kong real estate stocks fell broadly, with leading stocks such as HENDERSON LAND and SHK PPT experiencing varying degrees of decline. A report from Bank of America Securities pointed out that an aggressive interest rate path would bring risks, and it is expected that the upward momentum of property prices will slow in the second half of the year; JP Morgan also lowered the average target price for real estate stocks by 10%, believing that the weakness of the Hang Seng Index is the main downside risk, but maintains a forecast of moderate long-term growth for property prices" datetime: "2026-06-23T06:58:02.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/290522861.md) - [en](https://longbridge.com/en/news/290522861.md) - [zh-HK](https://longbridge.com/zh-HK/news/290522861.md) --- # Understanding the Market | Hong Kong property stocks broadly decline as concerns over potential interest rate hikes in the U.S. resurface; Bank of America Securities predicts a slowdown in property price increases According to the Zhitong Finance APP, Hong Kong real estate stocks are generally declining. As of the time of publication, Henderson Land (00012) is down 3.2%, trading at HKD 24.82; Sun Hung Kai Properties (00016) is down 2.99%, trading at HKD 110.2; Sino Land (00083) is down 2.45%, trading at HKD 10.35; Cheung Kong Group (01113) is down 1.83%, trading at HKD 43.9. In terms of news, Bank of America Securities released a research report stating that concerns about potential interest rate hikes in the U.S. have resurfaced, leading to recent adjustments in Hong Kong real estate stocks. Although the bank expects that the market has already priced in one to two rate hikes, which should not lead to a decline in local property prices, it acknowledges that a more aggressive interest rate path would pose risks. The bank anticipates that the momentum for new residential sales will slow in the second half of this year, with property prices showing only moderate growth (compared to a cumulative increase of 10% from the beginning of the year), and it has adjusted its forecast for property price growth in Hong Kong in 2027 from an original 5% increase to flat to 5% growth. JP Morgan pointed out that the index for second-hand residential property prices in Hong Kong has rebounded by 10.4% year-to-date, reaching the lower limit of the bank's forecast of a 10% to 15% increase for the entire year of 2026, indicating that property price growth may slow to below 5% in the second half of the year. The bank maintains its overall forecast and expects that although property price growth will slow, the upward trend will continue, with the biggest downside risk being the long-term weakness of the Hang Seng Index, which has historically shown a strong correlation with Hong Kong property prices (usually with a lag of 3 to 6 months). 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