The one-month Hong Kong Interbank Offered Rate (HIBOR) has dropped by about 280 bps MTD to 1.2% because of excess liquidity in the Hong Kong banking system, according to a Goldman Sachs report. The broker predicted the average one-month HIBOR to be 3.25%/ 2.85%/ 2.71% in 2025-27. Lower HIBOR could support residential property price increases and reduce borrowing costs for developers.

Goldman Sachs also estimated that the current 28,000 unsold completed residential units in the private market will take about 20 months to clear, and it will take about 10 months to reach a mid-term inventory level. The broker reiterated that the residential property market will remain stable this year, and raised its 2026-27 property price forecasts from the previous +3%/ +4% to +5%/ +6%.

Related NewsHSBC Research: Decline in HIBOR Favors HK Stocks, Especially Property/ High-yield Sectors
While Goldman Sachs' 2025 EPS forecasts for Hong Kong developers under its coverage were unchanged, its 2026-27 EPS forecasts were lifted by 2% and 6%. The broker kept a Buy rating on SHK PPT (00016.HK)  +1.850 (+2.228%)    Short selling $139.70M; Ratio 48.527%   and CK ASSET (01113.HK)  +0.350 (+1.080%)    Short selling $75.08M; Ratio 31.550%   .

Broker│Investment Rating│Target Price
SHK PPT (00016.HK)  +1.850 (+2.228%)    Short selling $139.70M; Ratio 48.527%   │Buy│HKD86 -> HKD89
CK ASSET (01113.HK)  +0.350 (+1.080%)    Short selling $75.08M; Ratio 31.550%   │Buy│HKD45.7 -> HKD44.7
SINO LAND (00083.HK)  +0.130 (+1.631%)    Short selling $8.80M; Ratio 17.763%   │Neutral│HKD7.4 -> HKD7.2
KERRY PPT (00683.HK)  +0.300 (+1.615%)    Short selling $4.69M; Ratio 14.158%   │Neutral│HKD16.8 -> HKD18
NEW WORLD DEV (00017.HK)  +0.250 (+5.580%)    Short selling $25.36M; Ratio 21.455%   │Sell│HKD4.4 -> HKD4.6
HENDERSON LAND (00012.HK)  +0.550 (+2.263%)    Short selling $42.12M; Ratio 22.777%   │Sell│HKD18.8 -> HKD20.4
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-06-03 16:25.)