38 Hong Kong-Listed Property Firms with Market Cap Below HKD 1 Billion, IPO Enthusiasm for Property Sector Hits Freezing Point

According to the "China Real Estate Full Industry Chain Development White Paper" released by the Viewpoint Index Research Institute, in 2025, the overall revenue growth rate of the property services industry declined, with significant performance divergence. Meanwhile, the impairment of financial assets such as accounts receivable and goodwill continues to affect the profitability of property firms, resulting in an overall poor performance in industry profitability.

Due to the current overall economic downward pressure and the decline in housing asset values, the policy side triggered a "wave of discounts on vacant property management fees" in the first half of this year, with increasing calls for property services to be "value for money." As of now, incomplete statistics show that over ten cities (districts), including Suzhou, Wuxi, Suqian, Yangzhou, Changzhou, Changsha, Shijiazhuang, Qingdao, Weifang, Yantai, and Lanzhou New Area, have announced discounts on vacant property management fees.

Under the influence of various factors, since 2025, the enthusiasm for IPOs in the property sector has hit a freezing point, with only Aolian Services submitting a listing application to the Hong Kong Stock Exchange on March 21. During the same period, Shenye Property, under Shenzhen Holdings, saw its fourth prospectus officially expire, still failing to enter the capital market as desired. Ronshine Service completed its privatization and delisting on March 18, primarily due to long-term low stock liquidity, a declining share price trend, and the inability to raise funds. Delisting will reduce the costs and expenses associated with maintaining a listed status.

Although property management stocks have shown a recovery trend since the first half of the year, they have overall underperformed the market. As of June 30, 2025, the Hang Seng Property Services and Management Index (HSPSM.HI) rose by 11% year-to-date, while the Hang Seng Index (HS1.HI) increased by 20%.

Among the 40 Hong Kong-listed property firms tracked by the Viewpoint Index, the average interval increase in the first half of the year was 7.71%. Valuations also saw a significant recovery, with the price-to-earnings ratio (TTM) increasing from 5.09x at the beginning of the year to 10.62x at the end of the first half. Among them, the three property firms with the largest stock price increases include ZhongAn Smart Life (+108.38%), Desun Property Services (+39.29%), and China Resources Mixc Lifestyle Services (+35.96%). The price-to-earnings ratios (TTM) of Desun Property Services and China Resources Mixc Lifestyle Services remained at the top level, at 24.21x and 22.1x, respectively.