Ge Long Hui·2026-01-20 02:15Core Viewpoint - Morgan Stanley believes that the market has priced in the stable recovery of the Hong Kong property market over the next two years, as several Hong Kong real estate stocks have reached or are close to historical highs [1] Group 1: Market Analysis - The potential upside for rental stocks is greater, as improvements in their commercial real estate businesses have not yet been fully reflected in stock prices, with most stock prices still over 30% lower than their peaks [1] Group 2: Stock Recommendations - The preferred stocks are Hang Lung Properties and Swire Properties, due to the continuous improvement in their retail businesses in mainland China [1] - Kowloon Development could become a dark horse if management expresses a more positive outlook on tenant sales during the earnings release in March [1] - Among developers, the preference is for Sino Land and Henderson Land, but the overall recommendation is to wait for a better entry point [1]