Citigroup: expected Hong Kong property prices rose but bearish on property stocks

Citigroup said in a research report that property prices in Hong Kong rebounded strongly in the first half of this year (2% per month after the Lunar New Year or 10% in the first half), mainly due to the peak season after the New Year, the wealth effect and the low liquidity of second hand, Disk pricing strategy is more aggressive, but given the increased risk concerns, the market is expected to expand the discount on the net asset value of developers shares, reiterating the view on holdings of real estate stocks.

The bank said that due to the Lunar New Year, the property market into the peak season, increased demand and supply, there is a “small spring” situation; at the same time in the distribution of bonus and additional labor, buyers have a higher attitude to buy a house; second-hand liquidity Low will make property prices more volatile, the overall supply remained low, expected the rapid rebound in property prices after the Lunar New Year; it is estimated that the developer of 64 salable items this year, to sell 2.44 million units, with the phase last year If the contracted sales are believed to be between 18,000 and 19,000 units, due to the fact that there is no substantial increase in supply, it is expected that developers will need to promote their growth through a proactive pricing strategy and the related actions will also boost second-hand property prices.