HK government made a surprise move of lifting all harsh measures on the residential market; this could improve sentiment and transactions near term.
The latest measures will substantially reduce transaction cost of residential property purchases for non-locals, corporates and local second-home buyers.
We revise up our growth estimates for 2024F to 20% for primary transaction volumes (previously: 15%) and 0-3% for home prices (previously: -3%).
We turn more optimistic on the residential sector. Our top-picks: SHKP, CK Assets and Sino Land. For beta names, we recommend NWD and HLD.
