Ge Long Hui·2026-01-06 07:48Core Viewpoint - Morgan Stanley expects Hong Kong residential property prices to rise by 10% this year due to increased demand from mainland buyers, inventory depletion, limited supply, and declining interest rates [1] Group 1: Property Market Outlook - The anticipated increase in residential property prices is supported by strong rental performance driven by talent inflow, leading to higher yields and positive spread returns, which in turn stimulates more investment demand [1] - Rental prices are projected to grow by 5% this year, further enhancing the attractiveness of the property market [1] Group 2: Stock Recommendations - Morgan Stanley has raised target prices for several real estate stocks, with New World Development and Henderson Land Development being top picks, having their target prices increased from HKD 105 to HKD 120 and from HKD 30 to HKD 36, respectively, both receiving "Overweight" ratings [1] - Cheung Kong Property is also among the preferred stocks, with its rating upgraded from "Market Perform" to "Overweight" and target price raised from HKD 39 to HKD 47 [1]