Chen Ningdi, Chairman of the Board of Directors of Dehlin Holdings (01709.HK), said that Hong Kong's commercial property market has experienced significant volatility in recent years, particularly under the dual effects of the pandemic and the changing global economic landscape. Looking ahead, however, Chen Ningdi believes that Hong Kong's commercial property prices will rebound as the Fed accelerates its rate cuts and forecasts a drop of around 3% by mid-2025. In terms of rents, the Fed rate cut will give China's monetary policy room to continue loosening, the spillover effect of the RMB and USD will directly increase the demand for office space in Hong Kong. Rental prices are expected to stop falling in 2025, start to rebound in 2026, and ordinary investors see an uptrend in 2027 As a result, commercial real estate prices rose.

CHAN NING-DI EXPECTS THAT AS DEMAND HEATS UP, THE HONG KONG GOVERNMENT MAY CONTINUE TO RELEASE COMMERCIAL LAND TO PROMOTE THE IMPLEMENTATION OF THE KOWLOON EAST PLAN, BUT ADDING LAND SUPPLY MAINLY IN NON-CORE AREAS WILL DIVERGE SOME MID- TO LOW-END OFFICE DEMAND. SALES PRICES IN CENTRAL WILL STOP FALLING AND RISING IN MID-2025, AND RENTS WILL FOLLOW The US monetary easing has seen financial demand rise, and its core position is hard to shake passively.

He noted that while the overall market is currently subdued, Hong Kong's Tier A office rents are still the world's number one, low cost and lack of inheritance tax, leaving Hong Kong's commercial real estate mortgage lending ratio the lowest in the world and extremely risk-averse. These advantages make Hong Kong commercial real estate attractive in the global market.