Ge Long Hui·2026-02-11 05:58Group 1 - Morgan Stanley maintains an optimistic outlook on the Hong Kong residential market, predicting a 10% year-on-year increase in property prices and a 5% growth in rental rates for this year [1] - The firm favors New World Development, Cheung Kong Property, and Henderson Land Development, assigning them "overweight" ratings, while it is bearish on Wharf Real Estate Investment Company, giving it a "underweight" rating [1] - Recent discussions with JLL Hong Kong Chairman, C. K. Chan, indicated that strong purchasing power from mainland buyers is expected to drive property prices up by 5% this year after hitting a bottom last year, with this upward cycle likely to continue for several years [1] Group 2 - The report highlights that a reduction in interest rates and favorable capital market performance could provide further upward momentum for the property market, although geopolitical risks and macroeconomic uncertainties may pose downward pressures [1] - Despite an overall improvement in market sentiment, C. K. Chan noted that the vacancy rate for commercial properties remains high, with only prime assets in Central expected to see rental increases [1]