CBRE Group stated that due to the relatively low level of property prices, coupled with the expectation of lower future mortgage rates compared to the current level, this will attract investors to enter the market.
According to the information from the CCT Finance APP, on November 4th, the Hong Kong Land Registry released statistics on the sales contracts of building units in October. CBRE Group stated that in the current high availability situation, developers tend to actively launch new units, prioritizing sales quantity. Therefore, it is expected that the volume of primary transactions will continue to increase in the coming months. CBRE Group mentioned that due to the relatively low level of property prices and the expectation of lower mortgage rates in the future compared to the current level, this will attract investors to enter the market. Secondary market transactions may also increase.
CBRE Group also pointed out that the transaction volume in October rebounded by 64.9% to 4,697 units after five consecutive months of decline. With the Federal Reserve starting to cut interest rates and the Hong Kong government introducing a range of easing policies (including relaxing the mortgage cap) during the Policy Address, it has been observed that buyers are actively entering the market. In October, developers have been launching residential projects to capture the suppressed property demand after the interest rate cut and policy announcements.
