Morgan Stanley expects that the 1-month Hong Kong Interbank Offered Rate (HIBOR) will drop to 2.75% next year, and the mortgage rate under the most favorable rate (P-1.75%) will drop to 3.25%. It is expected that the residential property prices in Hong Kong will rebound by 5% next year, while this year will decrease by 8%, which is a 30% drop from the peak. For every 100 basis point drop in the Hong Kong Interbank Offered Rate, the average profit of Hong Kong real estate developers will increase by 5%. Morgan Stanley is bullish on New World Development (00017.HK), Link REIT (00823.HK), and Wharf REIC (01997.HK) because they have stable profit prospects and may provide higher dividends in a low-interest rate environment. In addition, Hang Lung PPT (00012.HK) and Kerry Properties (00683.HK) should also benefit. However, the bank remains cautious about New World Development (00017.HK), Hang Lung PPT (00101.HK), and Henderson Land Development (00001.HK).

The listed real estate stocks in Hong Kong generally performed well today. New World Development (00016.HK) stock price was recently constrained by the 250-day moving average line, with a "shooting star" candlestick pattern, falling to find support at the beginning of August and the 20-day moving average line, now at 75.3 yuan, up 2.1%, with a turnover of 1.443 million shares, involving 0.108 billion yuan.

Link REIT (00823.HK) stock price fell to the 20-day moving average line and found support at the rising track since early July, now at 37 yuan, up 3.06%, re-surpassing the 250-day moving average line, with a turnover of 3.0843 million shares, involving 0.113 billion yuan.

Wharf REIC (01997.HK) tested the 50-day moving average line for support yesterday and is now at 22.3 yuan, up 3.48%, back above the 10-day, 20-day, and 100-day moving average lines, with a turnover of 0.9664 million shares, involving 21.3891 million yuan.

Hang Lung PPT (00012.HK) found support at the 100-day moving average line and is now at 23.85 yuan, up 2.36%, with a turnover of 0.8717 million shares, involving 20.6966 million yuan.

Kerry Properties (00683.HK) tested the 250-day moving average line for support yesterday and is now at 14.5 yuan, up 2.98%, with a turnover of 0.8975 million shares, involving 12.9203 million yuan.

New World Development (00017.HK) is now at 6.73 yuan, up 1.82%, with a turnover of 4.0332 million shares, involving 27.1122 million yuan.

Hysan Development (00014.HK) is now at 12.1 yuan, up 2.28%, with a turnover of 1.32 million shares, involving 15.9487 million yuan.

Hang Lung Properties (00101.HK) is now reporting 5.63 yuan, a decrease of 0.18%, with a turnover of 2.988 million shares, involving 16.8878 million yuan.