The departure of Tung Chee-hwa may be good news for the share prices of property developers, according to a research note published by JPMorgan.
Strategist Steven Li suggests Mr Tung's successor will pump up the land supply, largely in response to calls by developers for the government to relax its grip. Various property interests have expressed vocal support for Donald Tsang as the next chief as part of a gambit to win participation in the lucrative West Kowloon Cultural Centre.
'It remains uncertain whether this project will be awarded to one developer, as is currently planned, or split into multiple projects to encourage more participation,' Mr Li writes.
CLSA analyst Amar Gill believes the momentum is building to scrap the massive canopy for the cultural development, a move that would open the project to more than one developer. If Donald Tsang is keen to make himself a more popular choice as successor, the whole design yet might be changed and new tenders called,' Mr Gill writes. It is likely developers can expect more land at reasonable cost, he adds.