Analysts at BofA Securities have expressed concerns about potential US interest rate hikes, which could impact Hong Kong property stocks. They believe that while the market has priced in 1-2 rate hikes without a significant decline in property prices, a more aggressive rate increase could pose risks. Additionally, uncertainties from new outbound direct investment regulations in mainland China and weak performance of the HSI are expected to slow down primary residential sales in the second half of 2026, leading to only mild growth in property prices. Consequently, they have revised their 2027 property price growth forecast from a 5% increase to a range of 0-5%.
