Zhi Tong Cai Jing·2026-01-06 08:45Group 1 - Morgan Stanley has raised the target prices for several real estate stocks, with New World Development (00016) and Henderson Land (00012) being top picks, increasing their target prices from HKD 105 to HKD 120 and from HKD 30 to HKD 36, respectively, both receiving "Overweight" ratings [1] - Cheung Kong Holdings (01113) 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] - The firm expects residential property prices to rise by 10% this year, driven by increased demand from mainland buyers, inventory depletion, limited supply, and declining interest rates [1] Group 2 - Strong rental performance is anticipated due to talent inflow, leading to higher yields and positive spread returns, which will stimulate further investment demand; rental growth is expected to be 5% this year [1] - The wealth effect generated by the rise in the Hang Seng Index is also expected to support property prices [1]