Core Viewpoint - In 2025, Hong Kong's primary residential property sales contracts registered reached 20,525, with a total value of HKD 225.55 billion, marking year-on-year increases of 21.7% and 8.2%, respectively, the highest level in six years since 2019 [1] Group 1: Market Performance - The market is expected to maintain a transaction volume of around 20,000 units in 2026 [1] - Despite a temporary pressure on the Hong Kong property market due to the trade war at the beginning of the year, the market sentiment improved as the HSI returned to the 27,000-point mark following a decline in interbank rates and the Fed's resumption of interest rate cuts [1] - Developers accelerated their sales pace, achieving quarterly transaction volumes exceeding 5,000 units for three consecutive quarters, leading to an annual total returning to the 20,000-unit level for the first time in three years [1] Group 2: Quarterly Performance - In the fourth quarter of 2025, the registration volume fell to 5,577 units, a decrease of 1.6% quarter-on-quarter, but the transaction value increased by 12% to HKD 68.43 billion [1]

Group 1 - The demand for housing in Hong Kong remains strong, leading to a further increase in private residential rents, with the average rent per square foot reaching approximately HKD 38.02 in April, a month-on-month increase of about 0.4%, marking a new high since July 2019 [1] - The market anticipates three interest rate cuts in the US this year, which may lead to a further decline in mortgage rates in Hong Kong [1] - The recent drop in interbank rates has resulted in a decrease in mortgage rates, with the latest H mortgage rate at 3.23%, which is approximately 0.27% lower than the capped P mortgage rate of 3.5% [1] Group 2 - The residential market has experienced a "rising rent and falling price" phenomenon, contributing to an increase in rental yield, with the latest rental yield for Class A private residential properties recorded at 3.7%, up from 3.3% year-on-year [2] - The rental yield has increased by 1.4 percentage points compared to the low of 2.3% in 2021, indicating a positive trend in rental returns [2] - In April, rents continued to rise, with notable increases in rents along certain railway lines, such as a 9.8% increase at the Kowloon Station's Parkview and approximately 8.8% and 8.4% increases at the Wu Kai Sha Station's Silver Lake Peak and Wong Tai Sin Station's Sun Ching Mountain, respectively [2]