CK Asset Holdings (01113) - Justin Chiu: Expects Hong Kong's new building transactions in the first half of the year to increase by more than 30% year-on-year.

CK ASSET(01113) branch manager Guo Ziwei stated that the recent decision by the Federal Reserve to keep interest rates unchanged was completely in line with market expectations. It is widely expected that there will be two interest rate cuts in the second half of the year. Hong Kong's first quarter economic growth exceeded expectations, providing a significant boost to the recovery of the property market in Hong Kong. He expects that first-hand residential property transactions in the first half of the year will increase by over 30% compared to last year. With the easing of cooling measures, talent policies, and mainland capital inflows, new property projects have shown strong demand. Throughout the year, both property volume and prices are expected to rise, with particular emphasis on waterfront properties, quality properties along subway lines, and luxury properties. He pointed out that the decision to maintain interest rates unchanged is undoubtedly a stabilizer for the property market, helping to maintain a healthy balance without speculation or overheating. With gradual interest rate cuts expected to come, the Hong Kong property market is likely to enter a period of low volatility and stable growth, maintaining the forecast of a 10% increase in property prices for the whole year. With stable interest rates, mortgage costs are not expected to rise, keeping housing affordability stable and releasing pent-up demand for property purchases and upgrades. The continued advantage of "monthly mortgage payments lower than monthly rent" is driving the trend towards purchasing rather than renting, with ongoing demand for luxury properties and quality properties with subway or waterfront views. As tensions in the Middle East ease and energy inflation gradually falls, conditions are ripe for the US to speed up interest rate cuts, maintaining the downward trend in long-term interest rates and promoting rational and healthy trading in the market.