Centaline Property's Residence Division CEO Kevin Brown stated that the Federal Reserve in the USA announced the latest interest rate decision, cutting rates by 0.5 basis points at once, marking the first rate cut since March 2020 in the USA. Not only is the rate cut higher than expected, but there is also a possibility of further cuts later this year. Importantly, major banks in Hong Kong unexpectedly also cut rates by 0.25 basis points this time, and with the rate-cut cycle starting, it is believed that it will lead to an inflow of funds into other investment sectors.

He mentioned that the current property prices in Hong Kong have dropped by nearly 30% from the peak, coupled with sharp increases in rents, making it extremely attractive for both self-use and investment. The value of bricks is expected to rise again. Kevin Brown believes that the restart of the rate-cut cycle will definitely help boost the atmosphere of the Hong Kong property market. It is expected that the volume of residential transactions in the fourth quarter will increase, with new projects benefiting first. It is estimated that the first-hand transaction volume in the last quarter will reach 4,700 units, a significant increase of about 80% over the estimated 2,600 units for this quarter.

He pointed out that although mortgage rates in Hong Kong have significantly increased compared to three years ago, the high-level reversal of property prices, coupled with rising household incomes during this period, has actually increased the purchasing power of buyers entering the market.

Using an example of a unit priced at around 8.5 million dollars, calculated with a 30-year repayment period and a 70% mortgage three years ago in August 2021 when property prices were at their peak, the "Mortgage Market Index" (MMI) was only 1.58 basis points, resulting in a monthly repayment of about 20,764 dollars. However, to date, property prices have fallen by approximately 28% from their peak, meaning the price of that unit has dropped to around 6.12 million dollars. Assuming the same 30-year repayment period and 70% mortgage calculation, the mortgage rate in Hong Kong is reduced by 0.25 basis points this time, with the MMI expected to decrease from 4.14 basis points in August this year to 3.89 basis points. The monthly repayment for the aforementioned case is lowered to 20,182 dollars. As the median monthly income of households residing in private residences has risen from approximately 37,600 dollars three years ago to the latest 41,000 dollars, the burden of mortgage payments has decreased from 55.2% to around 49.2%.