JPMorgan maintains its full-year forecast for Hong Kong's residential property prices, expecting a 10-15% increase by 2026, although growth may slow to below 5% in the second half of the year. The firm has reduced target prices for property stocks by an average of 10% due to risks associated with the prolonged weakness of the Hang Seng Index, which historically correlates with property prices. The broker favors defensive stocks and developers with net cash positions, rating CK ASSET and SINO LAND as Overweight, while expressing caution on highly leveraged companies like HENDERSON LAND and NEW WORLD DEV due to rising financing costs.
