UBS: The Hong Kong SAR government's response to the real estate industry's policies is relatively limited, and it is more optimistic about mainland developers
UBS released a research report stating that, according to Chinese real estate agents, cities such as Chengdu, Hangzhou, Chongqing, Jinan, and Zhengzhou, which are more affected by the domestic economy, have relatively stable demand. However, buyers are sensitive to potential interest rate cuts and are waiting for possible policy stimuli. Overall, the bank is more optimistic about mainland developers than Hong Kong developers, due to a greater policy response and lower inventory levels in core first- and second-tier cities in the mainland compared to Hong Kong. In terms of policy response, UBS expects the mainland government may accelerate the repurchase plans for inventory or idle land and carry out urban village renovations through the issuance of special local government bonds. Additionally, the bank anticipates a reduction in policy interest rates by 30 to 40 basis points. Regarding the Hong Kong property market, UBS noted that buyers are taking a wait-and-see approach, and amid market uncertainty, developers have slowed the launch of new projects. Compared to the mainland, as most policies have already been relaxed, the Hong Kong SAR government's policy response to the real estate sector is relatively limited, and with recent high inventory levels, it is expected to take some time to reduce inventory
According to a research report released by UBS, as reported by Chinese real estate agents, cities such as Chengdu, Hangzhou, Chongqing, Jinan, and Zhengzhou, which are more affected by the domestic economy, have relatively stable demand. However, buyers are sensitive to potential interest rate cuts and are waiting for possible policy stimuli. Overall, the bank is more optimistic about mainland developers than Hong Kong developers, due to a greater policy response and lower inventory levels in core first- and second-tier cities in the mainland compared to Hong Kong.
In terms of policy response, UBS expects the mainland government to accelerate plans for the repurchase of inventory or idle land and to carry out urban village renovations through the issuance of special local government bonds. Additionally, the bank anticipates a reduction in policy interest rates by 30 to 40 basis points. Regarding the Hong Kong property market, UBS stated that buyers are taking a wait-and-see approach, and in the context of market uncertainty, developers have slowed down the launch of new projects. Compared to the mainland, the Hong Kong SAR government's policy response to the real estate sector is relatively limited, as most policies have already been relaxed, and with recent high inventory levels, it is expected to take some time to reduce inventory