Hong Kong real estate stocks gained momentum in afternoon trading. As of press time, SHK PPT (00016) rose 4.33% to HK$97.55; HANG LUNG PPT (00101) increased 2.33% to HK$8.8; HENDERSON LAND (00012) climbed 2.07% to HK$27.6; and HYSAN DEV (00014) advanced 1.71% to HK$16.08.
On the news front, the Hong Kong SAR government will deliver the 2025 Policy Address next Wednesday (17th). UBS released a research report stating that the market anticipates the government will further reduce stamp duty on residential properties valued between HK$4 million to HK$6 million, establish a "Home Purchase Fund Connect" scheme, further relax residential property investment qualifications under the Capital Investment Entrant Scheme, attract more mainland visitors to Hong Kong, accelerate Northern Metropolis development, and provide a timeline for including Real Estate Investment Trusts (REITs) in Stock Connect.
The bank expects the new Policy Address will benefit developers including HENDERSON LAND, SHK PPT, and Sino Land. Increased mainland tourist arrivals will support regional mall owners, including Wharf REIC, Hysan Development, and New World Development. Accelerated Northern Metropolis development may be negative for MTR Corporation due to rising capital expenditure concerns, but could potentially accelerate farmland resumption, which would be positive for Henderson Land. Regarding REITs inclusion in Stock Connect progress, UBS expects this to be positive for Link REIT.