To The Moon

Hong Kong property stocks advanced, with SHK PPT (00016) rising 2.54% to HK$101 by the time of writing; SWIREPROPERTIES (01972) gained 1.71% to HK$21.42; HENDERSON LAND (00012) increased by 1.46% to HK$29.2; and CK ASSET (01113) climbed 1.41% to HK$41.72. Morgan Stanley anticipates a 10% increase in Hong Kong residential property prices for the year, driven by heightened demand from mainland buyers, inventory drawdowns, limited new supply, and declining interest rates. Furthermore, robust rental performance fueled by an influx of talent suggests higher yields and positive carry, which in turn stimulates additional investment demand; the firm projects a 5% growth in rents for the year. Concurrently, the wealth effect generated by the Hang Seng Index's rise is also expected to provide support for property prices. The investment bank raised its target prices for several property stocks, with SHK PPT and HENDERSON LAND as its top picks; their target prices were lifted from HK$105 and HK$30 to HK$120 and HK$36, respectively, both maintaining "Overweight" ratings. CK ASSET is also among the firm's favored stocks, with its rating upgraded from "Equal-weight" to "Overweight" and its target price increased from HK$39 to HK$47.