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<Research>HSBC Research Favors SWIREPROPERTIES w/ TP HKD23.9; Central Office Rents May Stabilize Earlier Than Expected
Recommend 11 Positive 19 Negative 6 |
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BABA-W (09988.HK) has recently been reported to be in negotiations to purchase 13 floors of the new Grade A office building One Causeway Bay, with a total area of 270,000 square feet, for around HKD7 billion, translating to about HKD26,000 per square foot, according to a report from HSBC Global Research. If completed, this transaction will be the largest single office transaction in Hong Kong this year. In the broker's opinion, recent large-scale leasing transactions and the increasing interest in office sales reflected improving market demand, though a peak in supply will persist from 2H25 to 1H26. The broker highlighted that the downside risk faced by Hong Kong office landlords might be lower than previously expected by the market. In an optimistic scenario, office rents in the Central district might stabilize earlier than expected in 2H26. Regarding stock selection, SWIREPROPERTIES (01972.HK) will have several commercial projects set to open in phases from 2026, laying a solid foundation for rental income growth. HSBC Global Research gave it a target price of HKD23.9 and a Buy rating. In contrast, the broker kept a cautious view on CHAMPION REIT (02778.HK) due to potential continued pressure on its per-unit distribution. Its target price was set at HKD1.71, with a Reduce rating. AAStocks Financial News |
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