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<Research>M Stanley: Stamp Duty Hike on Luxury Homes to Weigh on Firms Like WHARF HOLDINGS; Home Prices Expected to Rise 10% This Yr
Recommend 13 Positive 21 Negative 12 |
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The Hong Kong government's new Budget announced an increase in the stamp duty rate for residential properties valued over $100 million to 6.5%, according to Morgan Stanley's research report. The broker estimated that such properties will account for 0.3% of total trading volume but 8% of total transaction amount in 2025. It is expected that the measure will have a negative impact on WHARF HOLDINGS (00004.HK). Other companies with exposure to such property risks include HANG LUNG PPT (00101.HK), CK ASSET (01113.HK), HENDERSON LAND (00012.HK) and SHK PPT (00016.HK). Furthermore, the government is seeking to include REITs under mutual-market access and introduce an amendment bill to facilitate the privatization or restructuring of REITs, and possibly exempt stamp duty on the transfer of non-residential properties in REITs seeking to list. This move is a positive factor for LINK REIT (00823.HK). Overall, Morgan Stanley maintained a constructive view on the recovery of home prices, estimating a 10% increase this year and no tightening measures within the year. However, with share prices having risen by about 20-50% YTD, some upside room has been absorbed. The upcoming results announcement season may bring volatility due to lower profit margins and weak earnings outlook for 2026. AASTOCKS Financial News Website: www.aastocks.com |
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