The recovery of Hong Kong's real estate market will be a gradual process, covering various asset sub-sectors, BOCOM International expressed its view in a report. The broker expected investors to prioritize the recovery of the residential sector, followed by premium retail assets, and finally core office spaces.

The sector was upgraded from Equal-weight to Outperform. SHK PPT (00016.HK)  -0.600 (-0.605%)    Short selling $41.40M; Ratio 24.636%   and LINK REIT (00823.HK)  +0.180 (+0.490%)    Short selling $72.96M; Ratio 19.822%   were the top picks of BOCOMI for residential and commercial properties, respectively, and were expected to benefit from industry recovery and multiple catalysts over the next 1-2 years.

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BOCOMI believed that the following changes are key supports for market recovery, including improvements in macro uncertainties (especially interest rate cuts), substantial policy easing, and the return of fundamental demand drivers.

The broker anticipated that residential rental levels will rise by about 3-5% in 2025, and by approximately 3% YoY in 2026 and 2027. Residential prices, on the other hand, were estimated to climb by 3-5% in 2025, and by 5% in both 2026 and 2027.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-11-28 16:25.)