Core Viewpoint - The Federal Reserve has once again cut interest rates, prompting major banks in Hong Kong to follow suit with a reduction of 0.125%, bringing the Hong Kong best lending rate (P) down to 5%-5.25% [1] Group 1: Market Predictions - Hong Kong Property has revised its forecast for new residential transactions in 2023 to 19,000 units, marking the highest level since the implementation of the "Residential Property Sale Regulations" in 2013 [1] - The forecast for second-hand residential transactions has also been increased to 45,000 units, representing a four-year high [1] - Hong Kong property prices are expected to show low single-digit growth, reversing the downward trend observed over the past three years [1] Group 2: Consumer Sentiment - A recent survey conducted by Hong Kong Property collected 327 valid responses regarding consumer property purchasing intentions [1] - The survey results indicate that 56% of respondents are considering entering the market within the next 12 months, the highest level in three quarters and the fourth highest since the second quarter of 2016 [1] - Approximately 44% of respondents stated they are not currently considering entering the market [1]

Group 1: Office Leasing Market - The overall Grade A office leasing market recorded a positive net absorption of 39,700 square feet in April after a negative absorption in March, with a stable vacancy rate of 13.7% [1] - The demand for office leasing is primarily driven by relocations for office upgrades, with The Payment Cards Group Limited leasing 12,100 square feet in Tsim Sha Tsui [1] - Certain industries, particularly finance, insurance, and education, are actively seeking office space, indicating a rising demand in specific sectors [1] Group 2: Rental Trends - Despite the stable vacancy rate, overall rental prices continued to decline, with a slight monthly decrease of 0.5% in April, marking the 36th consecutive month of rental decline since May 2022 [2] - Central and East Hong Kong recorded minor rental declines of 0.4% and 0.6% respectively, while other major districts also experienced similar decreases [2] Group 3: Residential Market - The overall residential transaction volume increased by 6.1% month-on-month in April, with the secondary market transactions rising to 4,080, indicating a recovery in demand [2] - The primary market transactions decreased to 1,614, but the performance remained strong due to the successful launch of several large projects [2] - A decrease in the one-month HIBOR by 3.36 percentage points to 0.59% as of May 26 is expected to alleviate pressure on mortgage borrowers, potentially boosting the residential market [2]