Since mid-June, Hong Kong property stocks have outpaced the HSI by 8%, according to a research report from JPMorgan.Just yesterday (25th), the sector rose by 3% (compared to a 1% gain in the HSI). The main reasons included: (1) growing market expectations that the US may cut interest rates earlier than anticipated; (2) sector rotation into high-dividend or lagging sectors such as Hong Kong property (in fact, Hong Kong property stocks were still underperforming the HSI by 1% YTD even after the recent rally); (3) The HIBOR has stayed below 1% for nearly two months; (4) a slight increase in southbound capital holdings (rising from 7.2% in early May to 7.6% recently); (5) to a lesser extent, positive news from strong sales absorption rates in recent residential projects, and JP Morgan has also observed increased interest from long-term investors. The broker also pointed out that some stocks (especially SHK PPT (00016.HK) -0.400 (-0.440%) Short selling $51.65M; Ratio 13.606% ) are already trading at quite high valuations.Related NewsUOB Kay Hian: Top Pick Among Landlords WHARF REIC (01997.HK) w/ TP Elevated to $26.5JPMorgan's top picks in the sector remained SWIREPROPERTIES (01972.HK) +0.140 (+0.716%) Short selling $19.00M; Ratio 21.161% , HENDERSON LAND (00012.HK) -0.550 (-1.954%) Short selling $70.81M; Ratio 33.945% , and LINK REIT (00823.HK) -0.050 (-0.118%) Short selling $35.97M; Ratio 11.397% . Even though these three stocks have already risen 30%, 28%, and 37% respectively YTD, they still offer dividend yields of over 6% and have further catalysts ahead.(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-06-27 16:25.)