Hong Kong Real Estate Looking beyond the near-term impact

Research evidence excerpt

Hong Kong Real Estate Looking beyond the near-term impact

8 June 2026

Hong Kong Real Estate EquitiesREMD

Looking beyond the near-term impact Hong Kong

◆ We expect the housing market uptrend to continue despite Raymond Liu*, CFA

the enhanced oversight around cross-border flows Analyst, Asia Real Estate and Conglomerates The Hongkong and Shanghai Banking Corporation Limited

raymond.w.m.liu@hsbc.com.hk

◆ While investor sentiment could remain soft in the near term, +852 2996 6743

the property sector is supported by population inflow, supply Michelle Kwok*

Head of Asia Real Estate and HK Equity Research

The Hongkong and Shanghai Banking Corporation Limited

◆ Among developers, we like SHK Properties, Henderson michellekwok@hsbc.com.hk

Land, and Sino Land, all rated Buy +852 2996 6918

Ganesh Siva*

Associate

Near-term impact, but long-term support. The share prices of Hong Kong Bangalore

developers have fallen by 12.5% since 22 May, underperforming the HSI by 8.7ppts.

Key investor debates are cantered around the enhanced oversight of cross-border * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is not registered/ qualified pursuant to FINRA regulations

flows (see here) in capital flow-related sectors such as brokers and banks. While we

believe investment sentiment in the property sector could remain soft in the near term

given the high sensitivity to capital flows, we remain constructive on the outlook for the

housing market thanks to support from net population growth, depletion in private

residential supply, and a positive cost of carry.

Context around property purchases. In 1Q26, mainland Chinese buyers accounted

for 36% and 49% of HK primary residential transactions in terms of units and