Midland Realty: In the first quarter of this year, the number of new property transactions in Hong Kong reached 100 cases, a year-on-year decrease of 45%.

According to market data from the research center of Midland Realty, there were 100 cases of new property reservations in Hong Kong in the first quarter of this year, a decrease of about 23.1% compared to the 130 cases in the fourth quarter of last year, and a significant decrease of about 44.8% compared to the 181 cases in the same period last year. Out of the 100 cases of new property reservations in the first quarter of this year, 32 were small reservations (over 3%) and 68 were large reservations (nearly 7%). Midland Realty's Chief Analyst, Liu Jiahui, pointed out that the slowdown in new property reservations in the first quarter of this year is not only due to the improved market sentiment, but is also closely related to the new guidelines introduced by the Hong Kong Monetary Authority in June and December last year. These new guidelines include allowing a maximum of 70% mortgage loans for residential properties under construction contracts signed by the end of February 2024, and increasing the maximum mortgage loan to 80% for eligible buyers (buyers who signed construction contracts from 2021 to 2023 and made payments during the construction period), and raising the "loan-to-income ratio" limit to 60%. These measures provide flexible financing methods for property owners in need and help reduce reservation risks. It is worth noting that out of the 100 new property reservation cases in the first quarter of this year, 53 have been resold, with a resale rate of 53%. Out of the 32 small reservations, 20 have been resold, accounting for approximately 62.5%. As for the 68 large reservations, 33 have also been resold, accounting for around 48.5%. This indicates that many reservation cases in the first quarter have been absorbed by the market again.