Group 1: Market Overview - Since the low point in March 2025, Hong Kong residential prices have rebounded over 4% [1] - Positive signs for continued recovery in the residential market include resilient stock market performance, suppressed demand being released, and strong transaction volumes [1] - The bank anticipates a further rebound of approximately 5% in property prices by the end of 2026 [1] Group 2: Market Dynamics - There is a decline in the number of listings in the secondary market, and more transactions are occurring above valuation prices, fueling a "fear of missing out" sentiment [1] - Interest from mainland buyers remains strong, with expected structural population growth [1] - The financial sector is recovering, contributing significantly to Hong Kong's GDP [1] Group 3: Risks and Preferences - The bank's constructive outlook is contingent on the continued resilience of the Hang Seng Index, as the real estate market is driven by sentiment [1] - Preferred developers include Sino Land (00083) with a low risk profile and a 6% dividend yield, followed by Henderson Land (00012) with a higher dividend yield of 6.6%, albeit with some risk of dividend cuts [2] - The bank would consider buying New World Development (00016) if its stock price falls to around HKD 85 [2]