HK Stock Market Move | Hong Kong property stocks rise across the board in the first half of the year, with housing prices in Hong Kong surpassing expectations. Citigroup predicts that the performance of developers will improve.

Hong Kong property stocks rose across the board. As of the time of publication, Henderson Land (00012) rose by 4.51% to 26.86 Hong Kong dollars; SHK PPT (00016) rose by 4% to 122.1 Hong Kong dollars; CK Asset (01113) rose by 2.72% to 46.78 Hong Kong dollars; and New World Dev (00017) rose by 1.54% to 6.58 Hong Kong dollars. HSBC stated that the Hong Kong residential market performed strongly in the first half of the year, with property prices rising by around 10%, surpassing the initial forecast of 7% for the whole year. This was mainly driven by improving home demand, reduced inventory, and favorable interest rate environment. The bank expects the uptrend in the property market to continue, but anticipates a slowdown in price growth in the second half of the year. The bank pointed out that the structural uptrend in the Hong Kong residential market remains intact, with improving supply-demand dynamics, increasing profit visibility, and improving profitability for property developers continuing to support the industry's development. Hong Kong property stocks are about to release their first-half results. Citigroup published a research report, forecasting that the first-half performance of Hong Kong property stocks in 2026 will improve, mainly benefiting from property development profit margins increasing from 3% in the first half of 2025 to an expected range of 13% to 18%; strong sales revenue recognition; positive adjustment in mainland retail rents; and improvement in financial costs due to reduced debt.