Glonghui, January 31 | Goldman Sachs released a report to lower the forecast for housing prices this year from flat to 5%, considering the slowdown in Hong Kong property market transactions and weak demand for upgrades and investment. However, the bank expects that the market will recover after banks begin to lower mortgage interest rates in the second quarter, so it raised the forecast for next year's housing prices to rise by 5%. Goldman Sachs expects that the macro background is weaker than expected and interest rates are higher than expected, continuing to put pressure on property prices. Residential property prices in Hong Kong have fallen by about 23% from their high in August 2021 and by 0.5% from the beginning of the year to date, and the performance continues to weaken. While property prices are falling, the volume of transactions is also relatively low, which shows that even if property prices fall, buyers' desire to buy a property is still weak. One notable positive factor is the influx of talent into Hong Kong, driving up rents, yet residential rental yields are still low compared to mortgage interest rates. Among local real estate stocks, the bank favors longevity because it invests the least in real estate in the Mainland and Hong Kong. About half of the profit before interest and tax comes from infrastructure, utilities, etc. outside the mainland, there are no assets or liabilities, and the dividend rate is within a manageable range, so it has the highest dividend score per share.