Core Insights - The Hong Kong residential market continues to show strong trading momentum, with monthly transaction volumes exceeding 5,000 since March 2023, leading to a total of approximately 16,700 residential sale agreements in Q3 2023, a year-on-year increase of 63% [1] - The removal of buyer stamp duties and the increase in property value limits starting in 2024 significantly reduce purchasing costs, contributing to heightened buyer interest [1] - The influx of mainland buyers, accounting for 24% of new and second-hand transactions in 2024, has become a major driver of demand, with this figure rising to 17.74% in the first half of 2025 [1] Market Dynamics - The easing of the financial environment and rising rental yields are encouraging buyer participation in the market [1] - The introduction of talent attraction programs in Hong Kong is expected to support long-term rental and sales market demand, with non-local student enrollment in public universities increasing from 20% to 40% starting in the 2024/25 academic year [1] - The Hang Seng Index has risen by 31% since April 2025, and the total IPO fundraising in Hong Kong reached HKD 107 billion in the first half of 2023, reflecting a 22% year-on-year increase, indicating a positive correlation between the stock market and the real estate market [1] Comparative Analysis - The experience of Hong Kong's real estate market reversal highlights the importance of talent policies, capital inflow, and stock market linkage as key factors [2] - Similar conditions are emerging in core mainland cities like Shanghai, which may accelerate market stabilization through policies aimed at housing quality and urban renewal [2] - The stabilization of the mainland real estate market is expected to rely on sustained economic performance rather than mere supply-demand adjustments, with Hong Kong's approach to interest rate adjustments providing insights for mainland regulatory policy [2]