CK ASSET's Chief Sales Manager, Kwok Chee Wai, stated that the US Federal Reserve's decision to maintain interest rates was fully in line with market expectations. The market widely anticipates two interest rate cuts in the second half of the year. Hong Kong's better-than-expected first-quarter economic growth has provided a significant boost to the recovery of the local property market. He predicts that primary residential transactions in the first half of this year will increase by over 30% compared to the same period last year. Driven by the removal of property cooling measures, talent policies, and mainland capital, new developments are seeing strong uptake. For the full year, the property market is expected to see growth in both volume and price, with seaview properties, high-quality units along MTR lines, and luxury homes showing the most prominent potential for appreciation. He pointed out that the current steady interest rates act as a "stabilizer" for the property market, maintaining a healthy environment free from speculation or bubbles. As interest rate cuts are gradually implemented, the Hong Kong property market will enter a healthy upward cycle characterized by low volatility and steady growth. His forecast of a 10% increase in Hong Kong residential prices for the full year remains unchanged. With stable interest rates, there is no risk of rising mortgage costs, and housing affordability remains steady, effectively releasing pent-up demand from first-time buyers and those looking to upgrade. The advantage of "monthly mortgage payments being lower than monthly rents" continues to stand out, driving a trend of shifting from renting to buying. Capital continues to flow into luxury properties and high-quality assets near MTR stations or with seaviews. As the situation in the Middle East eases and energy-driven inflation gradually declines, the conditions for the US to accelerate interest rate cuts are improving. The long-term trend of declining interest rates remains unchanged, and market activity is expected to become more rational and healthy.
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