An influx of hot money continues to underpin the rally in Hong Kong property stocks, even though analysts say the gains already appear to have priced in the improved outlook for the property market.

Henderson Land Development led yesterday's sector advance, climbing 7.71% to close at HK$46.10, followed by Hang Lung Properties , Sun Hung Kai Properties, Kerry Properties and Cheung Kong (Holdings), which all gained more than 5%.

Investment bank Goldman Sachs said in a report that the rally appeared to have priced in several factors, including another 5-10% rise in residential prices and a stabilisation of the commercial property market in terms of prices and rents over the next 12 months.

South China Morning Post