HSBC research reports that despite the recent news has been positive, there are many specific challenges in Hong Kong's commercial real estate industry. Supply is the biggest problem. Next year the largest supply of office buildings is expected to enter the market in 20 years, but the downside market demand is not substantially good Turn.

It is also pessimistic about retail rent. Retail rents are estimated to decline by up to 3% next year (3% to 5%) due to weak local consumption and macro challenges. HSBC is also concerned about the risk of dividend reduction as it considers to be a major but overlooked issue, which would have a negative impact on share price performance.

report examines several metrics to identify potential downside risks to the industry and estimates that approximately 25% of companies within the bank's coverage will be at risk adjusted to their dividend per share/unit distribution in the coming year. In rental shares and REITs, HSBC prefers retail rather than office.

HSBC study adjusted the target price and some ratings of local property stocks (see table), including lowering Swire Properties (01972.HK) and Kerry Properties (00683.HK) ratings from “buy” to “hold”, and Land and Champion REIT (02778.HK) from “held” to “holdings”.