[Real Estate Major Bank Report] Morgan Stanley: RMB appreciation against HKD drives a surge in mainland Chinese buying property in Hong Kong; Cheung Kong Property is the top pick in real estate stocks

SocialAnxietyStaker · 2026-03-11T08:27:10+00:00

Morgan Stanley report indicates that in the first two months of this year, mainland buyers purchased 2,600 residential units in Hong Kong, with a transaction amount of HKD 28.2 billion, both showing significant increases. The reasons include the strengthening of the Renminbi and attractive rental yields. The report is optimistic about the Hong Kong residential market, expecting new projects to continue to sell well, and predicts that the Middle East situation may attract capital inflows into Hong Kong.

SocialAnxietyStaker

2026-03-11 08:27:10

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Morgan Stanley releases a report stating that, according to the brokerage and United States data, mainland buyers purchased a total of 2,600 residential units in Hong Kong in the first two months of this year, a year-on-year increase of 91%. The total transaction amount was HKD 28.2 billion, up 136% year-on-year. February also marked the 12th consecutive month that mainland buyers transacted over 1,000 units.

Morgan Stanley believes that the strengthening of the RMB against the HKD/USD, attractive rental yields, and the positive gross carry (commonly known as “buying to rent out”) brought about by the housing market recovery are the main reasons for this trend.

Morgan Stanley maintains an optimistic outlook on Hong Kong’s residential market, listing CK Asset (00016) as its top pick in the sector, and prefers Sun Hung Kai Properties (00012) over Henderson Land (00012).

Middle East tensions may drive potential capital and talent inflows into Hong Kong

Morgan Stanley expects that upcoming new projects such as the Link REIT (00083) and MTR’s (00066) La Mirabelle in Sai Wan, with about 2,600 units, as well as CK Asset’s (01113) Victoria Blossom with 1,000 units, will continue to see strong sales, with the average selling price (ASP) also gradually increasing.

Additionally, Morgan Stanley believes that Hong Kong’s stable environment and low tax system, combined with recent developments in the Middle East, could highlight Hong Kong’s position as a major alternative financial center. The potential influx of capital and talent will have a positive impact on the Hong Kong property market.

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