The bank expects that nationwide property prices will stabilize in early next year, raising the sales forecast for new properties this year and next by 7% to 16%, while the forecast for existing property sales is raised by 7% to 10%.
According to the Zhichun Finance APP, UBS Group has released a Research Report stating that it has upgraded the ratings of GREENTOWN CHINA (03900), YUEXIU PROPERTY (00123), and JIANFA INTERNATIONAL INVESTMENT GROUP (01908) from "Neutral" to "Buy", raising their Target Prices to HKD 19, HKD 6.5, and HKD 19 respectively. It believes that the differentiation among property developers will become more apparent, as only first-tier and core second-tier cities remain stable, preferring regional state-owned property developers over national ones. At the same time, the bank is also bullish on KERRY PPT (00683) and SWIREPROPERTIES (01972) due to their projects in the high-end Residence market in Shanghai.
UBS Group pointed out that the signals of market stabilization in key first-tier and second-tier cities are strengthening, including a recovery in existing home transactions in the first two months without policy easing, a decline in inventory months in first-tier cities below the level, an increase in land auction premiums, and stability in second-hand home listings. The bank expects national housing prices to stabilize in early next year and has raised its forecast for new home sales in the current and next year by 7% to 16%, and existing home sales by 7% to 10%.
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