Hong Kong property shares rallied, leading gains in the broader market along with technology stocks, after Morgan Stanley boosted its forecast for home prices.

A gauge of builders jumped as much as 2.7 percent on Monday and led the Hang Seng Index over the past month. Henderson Land Development Co climbed as much as 6 percent after Morgan Stanley raised the stock to overweight from neutral and lifted its price target to HK$37 from HK$33, saying the developer stands to be a beneficiary of home prices heading higher while interest rates are set to decline.

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Hong Kong’s property market has been showing signs of a revival, with rising rents and home prices, as well as strong interest at new developments coming to the market. Morgan Stanley raised its estimate for home-price growth to 12 percent this year from 10 percent, and expects another 5 percent in 2027.

“We have turned more bullish, driven by strong sell-though, rising average selling prices at subsequent launched phases, declining inventory levels, and falling land supply,” analysts led by Praveen K Choudhary wrote in a note. “We see tailwinds from capital and talent coming from the Middle East and mainland.”

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The bank’s analysts have turned more positive on the office and retail segments as well, with better-than-expected recovery seen in fundamentals, according to the note.