Why Morgan Stanley sees more upside in Hong Kong offices than New York towers

AI Summary

Morgan Stanley sees greater near-term upside in Hong Kong office property than in New York towers, despite higher interest rates weighing on both markets. Its report cites Hong Kong’s limited land supply and monetary-policy ties to the US Federal Reserve.

Higher interest rates have weighed on property markets in both Hong Kong and New York, but Morgan Stanley sees greater upside potential in the Asian financial hub – particularly the office segment – in the months ahead, according to its latest report. The US investment bank highlighted the similarities between two of the world’s leading financial centres, pointing out that Hong Kong’s monetary policy moved in lockstep with the US Federal Reserve, while both cities faced limited land supply,...