Core Viewpoint - Hong Kong real estate stocks experienced an afternoon rally, driven by market expectations of favorable government policies in the upcoming 2025 policy address [1] Group 1: Stock Performance - New World Development (00016) rose by 4.33% to HKD 97.55 - Hang Lung Properties (00101) increased by 2.33% to HKD 8.8 - Hysan Development (00012) gained 2.07% to HKD 27.6 - Henderson Land Development (00014) climbed 1.71% to HKD 16.08 [1] Group 2: Government Policy Expectations - The Hong Kong government is set to announce the 2025 policy address on Wednesday, 17th - UBS anticipates the government will reduce stamp duty on residential properties valued between HKD 4 million to HKD 6 million - Proposed initiatives include a "Home Purchase Fund" plan, further relaxation of capital investor entry qualifications, and measures to attract more mainland visitors [1] Group 3: Impact on Real Estate Developers - The new policy address is expected to benefit developers such as Hysan Development, New World Development, and Sino Land - Increased mainland visitor traffic is likely to support regional mall owners, including Wharf Real Estate Investment and Hysan Development - Accelerated development in the Northern Metropolis may pose negative implications for MTR Corporation due to rising capital expenditure concerns, but could positively impact land reclamation for Henderson Land Development [1] Group 4: REITs and Market Outlook - UBS predicts that the inclusion of Real Estate Investment Trusts (REITs) in the mutual market connectivity will have a positive effect on Link REIT [1]

Core Viewpoint - Hong Kong real estate stocks experienced an afternoon rally, driven by market expectations of favorable government policies in the upcoming 2025 policy address [1] Group 1: Stock Performance - Sun Hung Kai Properties (00016) rose by 4.33% to HKD 97.55 - Hang Lung Properties (00101) increased by 2.33% to HKD 8.8 - Henderson Land Development (00012) gained 2.07% to HKD 27.6 - Hysan Development (00014) climbed 1.71% to HKD 16.08 [1] Group 2: Government Policy Expectations - The Hong Kong government is set to announce the 2025 policy address on Wednesday, 17th [1] - UBS anticipates the government will further reduce the stamp duty on residential properties valued between HKD 4 million to HKD 6 million [1] - Proposed measures include the establishment of a "Home Purchase Fund" plan and further relaxation of residential property investment qualifications for capital investors [1] Group 3: Impact on Real Estate Developers - The new policy address is expected to benefit developers such as Henderson Land, Sun Hung Kai Properties, and Sino Land [1] - Increased mainland visitor arrivals are projected to support regional mall owners, including Wharf Real Estate Investment and Hysan Development [1] - Accelerated development in the Northern Metropolis may pose negative implications for MTR Corporation due to rising capital expenditure concerns, but could positively impact land reclamation for Henderson Land [1] Group 4: REITs and Market Outlook - UBS forecasts that the inclusion of Real Estate Investment Trusts (REITs) in the mutual market connectivity will have a positive effect on Link REIT [1]

Group 1 - The Hong Kong government is exploring the relaxation of restrictions on mainland talent's fund allocation for purchasing properties in Hong Kong, as announced by Financial Secretary Paul Chan [1] - The proposal from the Democratic Alliance for the Betterment and Progress of Hong Kong (DAB) suggests implementing a home purchase fund similar to the existing cross-border financial connectivity initiatives [1] - If these measures are implemented, they could positively impact the Hong Kong real estate sector by increasing demand from mainland buyers, potentially alleviating pressure on property prices and inventory levels [1] Group 2 - UBS indicates that while the home purchase fund policy is still under discussion and unlikely to be launched soon, there is a higher probability of a pilot program being initiated within the Greater Bay Area [1] - Any updates to policies may release suppressed local demand that has been affected by U.S. interest rate hikes [1] - The firm maintains a positive outlook on certain Hong Kong developers, including Henderson Land Development, Sino Land, New World Development, and Kerry Properties [1]

Core Viewpoint - UBS reports that the proposed "Home Purchase Fund Transfer" could positively impact Hong Kong's real estate market by increasing demand from mainland buyers, potentially alleviating pressure on property prices and inventory levels [1] Group 1: Policy Implications - The Hong Kong government is exploring the relaxation of restrictions on mainland talent transferring funds to purchase property in Hong Kong [1] - The proposal for the "Home Purchase Fund Transfer" is inspired by the concept of mutual connectivity and is currently under discussion, indicating that implementation may not be immediate [1] Group 2: Market Impact - If the policy is implemented, it is expected to boost demand from mainland buyers, which could help ease the pressure on property prices and inventory in the market [1] - UBS anticipates that any policy updates could also release suppressed local demand due to previous U.S. interest rate hikes [1] Group 3: Company Outlook - UBS maintains a positive outlook on several Hong Kong developers, including Hang Lung Properties (00012.HK), Sino Land (00083.HK), Sun Hung Kai Properties (00016.HK), and Kerry Properties (00683.HK) [1]