Land supply remains the determining factor in tackling the affordability issue of Hong Kong housing market, reported Morgan Stanley. Given the recent shortage of property supply, the broker predicts the property prices to continue to rally this year and next year under a base case scenario. However, Morgan Stanley remarked that, the Hong Kong developers might face de-rating should there be any major announcement from the government or any acceleration in the growth of land supply.
Among the developers, Morgan Stanley favors SHK PPT (00016.HK), KERRY PPT (00683.HK) and SINO LAND (00083.HK), more than HENDERSON LAND (00012.HK), CK ASSET (01113.HK) and NEW WORLD DEV (00017.HK). Contending that the fundamentals of developers are better than those of landlords, the broker, however, highlighted that developers would be subject to any regulatory risks, which may trigger de-rating.
Among the developers, Morgan Stanley favors SHK PPT (00016.HK), KERRY PPT (00683.HK) and SINO LAND (00083.HK), more than HENDERSON LAND (00012.HK), CK ASSET (01113.HK) and NEW WORLD DEV (00017.HK). Contending that the fundamentals of developers are better than those of landlords, the broker, however, highlighted that developers would be subject to any regulatory risks, which may trigger de-rating.