<div id="readability-page-1"><div>G Sachs published a research report noting that Hong Kong residential prices and office rents have performed better than expected since the beginning of this year, prompting another upward revision to its forecasts. It now expects Hong Kong residential property prices to rise 15% this year (previously forecast to increase 12%), while forecasts for 2027 and 2028 remain unchanged at increases of 7% and 4%, respectively. The bank continues to prefer property developers, which it believes will benefit from a multi-year upcycle in Hong Kongs residential market.The report mentioned that residential prices have risen 8% year-to-date, with primary sales volume increasing 48%. Rental growth has been slower, up only 1.2% year-to-date, reflecting a shift in part of demand from leasing to purchasing.For offices, G Sachs raised its 2026 rental growth forecast from flat to 3%. Rental growth in the core Central district was significantly revised up from 3% to 10%, while non-core districts were kept flat YoY due to still-elevated vacancy rates. Retail rental growth was slightly adjusted up from 2% to 3%, mainly driven by the luxury segment (revised up from 4% to 5%).On individual stocks, G Sachs raised TPs for multiple companies. The TP for HENDERSON LAND (00012.HK) -0.320 (-0.988%) Short selling $87.51M; Ratio 21.138% was lifted from HKD38 to HKD41, representing an 8% increase, with a Buy rating and inclusion on the Conviction List Buy. The TP for SHK PPT (00016.HK) -0.100 (-0.074%) Short selling $178.65M; Ratio 27.750% was raised from HKD164 to HKD170, up 4%, with a Buy rating. The TP for SINO LAND (00083.HK) -0.100 (-0.803%) Short selling $15.68M; Ratio 26.067% was increased from HKD15.2 to HKD16, up 5%, with a Buy rating. The TP for SWIREPROPERTIES (01972.HK) +0.100 (+0.427%) Short selling $17.40M; Ratio 26.598% was lifted from HKD30 to HKD30.7, up 2%, with a Buy rating. The TP for HANG LUNG PPT (00101.HK) -0.020 (-0.238%) Short selling $14.91M; Ratio 19.145% was maintained at HKD11.5, with a Buy rating. The TP for HYSAN DEV (00014.HK) -0.010 (-0.052%) Short selling $8.88M; Ratio 35.098% was kept at HKD24.9, with a Neutral rating.However, G Sachs cut the TP for NEW WORLD DEV (00017.HK) -0.120 (-1.422%) Short selling $7.93M; Ratio 13.761% from HKD12.5 to HKD11, representing a 12% decrease, with a Neutral rating, mainly due to its latest assessment of net debt and cash flow. The bank rated WHARF HOLDINGS (00004.HK) -0.780 (-2.885%) Short selling $10.49M; Ratio 7.400% as Sell, with a TP maintained at HKD25, reflecting concerns over its mainland rental income, development property profits and the volatility of its equity investment portfolio.The bank continues to favor developers with abundant saleable resources to monetize during the upcycle, such as HENDERSON LAND and SHK PPT, as well as SINO LAND, which has a strong balance sheet and is willing to replenish its land bank at trough levels. Among landlords, it prefers Hongkong Land and SWIREPROPERTIES, which are better positioned to benefit from core Central office exposure and high-end retail.</div></div>

00016

00097

00017

00012

G Sachs has raised its forecast for Hong Kong residential property prices to a 15% increase this year, up from 12%. The bank favors HENDERSON LAND and SHK PPT, increasing their target prices, while cutting NEW WORLD DEV's target price by 12%. The report highlights strong residential price growth and a shift in demand from leasing to purchasing, with office rental growth also revised upwards for 2026.

AASTOCKS News

SHK PPT

HENDERSON INV

NEW WORLD DEV

HENDERSON LAND

Goldman Sachs

SINO LAND

SWIREPROPERTIES

HANG LUNG PPT

HYSAN DEV

WHARF HOLDINGS

HongkongLand USD

GS Hldg R

SHK PPT-R

Wharf Holdings

G Sachs Raises HK Home Prices Forecast to +15% This Year; Favors HENDERSON LAND , SHK PPT ; Cuts NEW WORLD DEV  TP