Group 1 - In January 2026, there were 36 registered reverse mortgage applications, an increase of 6 applications month-on-month, representing a 20% rise, and a year-on-year increase of 1.8 times compared to January 2025, which had 13 applications [1] - The total number of reverse mortgage registrations for the year 2025 was 370, a decrease of 13% compared to 426 registrations in 2024 [1] - The highest annual registration volume for reverse mortgages was recorded in 2017 with 751 registrations, followed by 621 in 2018, during periods of rising property prices [1] Group 2 - In January 2026, there were 62 reverse mortgage applications, a decrease of 24% from 82 applications in December 2025, and a year-on-year decline of 21.5% compared to 79 applications in January 2025 [2] - The average age of reverse mortgage applicants is approximately 69 years, with an average property value of 5.5 million HKD, which has remained stable for five months [2] - The most popular option for annuity payment is the lifetime annuity, chosen by 54% of applicants, followed by a 10-year fixed term option at 20.7% [2]

Core Viewpoint - Citigroup has raised its forecast for Hong Kong's property price increase in 2026 from 3% to 8%, following an unexpected rise of 4.7% in 2025, and anticipates further acceleration in property prices by 2027 [1] Group 1: Market Conditions - The supply of new land is at its lowest level in 14 years, falling below sales volume [1] - The available supply within a year has decreased by 10,000 units [1] - From 2026, new property sales are expected to turn into net growth for the first time since 2019, with an anticipated 21,000 units sold [1] - The completion volume is expected to decline over the next 2-3 years, with an estimated 20,000 units in 2026 [1] Group 2: Demand Factors - The number of non-local student visa approvals in Hong Kong is projected to increase by 10,000 per year, reaching 90,000 [1] - Talent inflow is expected to reach 160,000, compared to 180,000 in 2023/2024 [1] - These factors are expected to boost the rental market and future demand in Hong Kong [1] Group 3: Price and Yield Projections - Cumulative property price growth in Hong Kong from 2023 to 2025 is expected to reach 20%, with a 6% increase in 2025 alone [1] - Gross rental yield is projected to reach 3.5%, with properties under 70 square meters achieving breakeven [1] - The Hang Seng Index typically leads property prices by approximately three months due to the wealth effect from capital markets [1]