Macau Real Estate News

macau-invest · May 28th, 2009, 11:43 AM

Analysts bet on property

Alfred Liu

Wednesday, May 27, 2009

Analysts continue to be bullish about Hong Kong property as abundant liquidity has led to all-time low interest rates.
JPMorgan expects local residential prices to increase 10 percent this year from a year ago, compared to its previous forecast of a 20 percent drop. The brokerage also estimates prices will rise 5 percent next year. "We turn more positive on the Hong Kong economy" which should gradually recover in the second half of the year, it reports.

"Given ample liquidity - which we believe is reflected in the historical low one-month interbank rate of only 0.087 percent - and positive news flow from new launches, the sector is likely to rise to above-mean valuations in the near term," the report adds.

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The brokerage has raised its target price for Cheung Kong (Holdings) (0001) by 16 percent to HK$87, for Sun Hung Kai Properties (0016) by 37 percent to HK$96, and Henderson Land (0012) by 28 percent to HK$46.

Local property stocks extended their rally yesterday with low interest rates driving up demand for real estate.

Sino Land (0083) advanced to a nine- month high, climbing 8.74 percent to end at HK$13.94, while New World Development (0017) rose 5.22 percent to HK$14.52.

Cheung Kong added 2.48 percent to HK$91 and Sun Hung Kai Properties gained 1.93 percent to HK$92.65.

In general, JPMorgan sees 5 percent to 20 percent potential share price upside.

Merrill Lynch said it believes property prices will increase 5 percent during the remainder of 2009 and 5 to 10 percent in 2010. The investment bank prefers Sun Hung Kai Properties over Cheung Kong.

"We view SHKP as the `Prada of HK developers,' a reputation recognized locally and among wealthy mainland Chinese buyers," Merrill Lynch said.

For the overall market, "We believe sentiment has clearly improved, particularly with clarity that China is on its way to attaining its 8 percent GDP growth target in 2009, and signs the financial markets may have bottomed."

May 28th, 2009, 11:43 AM	#1
macau-invest Registered User Join Date: Apr 2008 Posts: 167	HK property market warming up, Macau to follow? Analysts bet on property Alfred Liu Wednesday, May 27, 2009 Analysts continue to be bullish about Hong Kong property as abundant liquidity has led to all-time low interest rates. JPMorgan expects local residential prices to increase 10 percent this year from a year ago, compared to its previous forecast of a 20 percent drop. The brokerage also estimates prices will rise 5 percent next year. "We turn more positive on the Hong Kong economy" which should gradually recover in the second half of the year, it reports. "Given ample liquidity - which we believe is reflected in the historical low one-month interbank rate of only 0.087 percent - and positive news flow from new launches, the sector is likely to rise to above-mean valuations in the near term," the report adds. ADVERTISEMENT The brokerage has raised its target price for Cheung Kong (Holdings) (0001) by 16 percent to HK$87, for Sun Hung Kai Properties (0016) by 37 percent to HK$96, and Henderson Land (0012) by 28 percent to HK$46. Local property stocks extended their rally yesterday with low interest rates driving up demand for real estate. Sino Land (0083) advanced to a nine- month high, climbing 8.74 percent to end at HK$13.94, while New World Development (0017) rose 5.22 percent to HK$14.52. Cheung Kong added 2.48 percent to HK$91 and Sun Hung Kai Properties gained 1.93 percent to HK$92.65. In general, JPMorgan sees 5 percent to 20 percent potential share price upside. Merrill Lynch said it believes property prices will increase 5 percent during the remainder of 2009 and 5 to 10 percent in 2010. The investment bank prefers Sun Hung Kai Properties over Cheung Kong. "We view SHKP as the `Prada of HK developers,' a reputation recognized locally and among wealthy mainland Chinese buyers," Merrill Lynch said. For the overall market, "We believe sentiment has clearly improved, particularly with clarity that China is on its way to attaining its 8 percent GDP growth target in 2009, and signs the financial markets may have bottomed."

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