Beijing Homelink: Hong Kong property market will "turn the corner and straighten out" in the second half of the year, and prices are expected to rise by around 10% for the whole year.

Geopolitical risks are rising, and global asset prices are experiencing significant volatility. MIDLAND HOLDING Chairman Wong Kin Yip stated that with the outbreak of war, prices of investment products such as stocks, gold, and virtual currencies have fallen by 10% to nearly 30% from their highs earlier in the year. However, the Hong Kong property market is one of the few assets that have not been affected, as it has shown strong performance in the first quarter with prices and transaction volumes rising against expectations, highlighting the safe-haven value of "brick culture". Wong Kin Yip also mentioned that after a sharp rise in prices and transaction volumes in the first quarter, trading in the property market may slow down in the second quarter. This is not only due to the ongoing war, but also because the property market saw strong growth in the first quarter with high base numbers, requiring a recovery in purchasing power. Therefore, it is expected that the property market in the second quarter may see a slight decline in transaction volumes despite prices continuing to rise gradually. However, he believes that the Hong Kong property market will remain resilient, and if the war subsides, the market may begin to stabilize in the second half of the year with a possible recovery in growth. Overall, it is estimated that Hong Kong property prices will still rise by around 10% for the whole year.