Group 1: Office Market Outlook - The vacancy rate for Grade A office buildings in Hong Kong is expected to rise to approximately 19% by the end of 2025, as new project completions outpace new leasing demand despite ongoing market absorption improvements [1] - Overall Grade A office rents in Hong Kong are projected to decline by about 7% for the year [1] - Owners are adopting more flexible leasing strategies to enhance competitiveness in response to the supply-demand imbalance [1] Group 2: Retail Market Insights - Core area street shops are expected to experience steady growth, primarily benefiting from stable leasing demand from diverse tenants, including the food and beverage sector [1] - The government's active promotion of specialty tourism is anticipated to attract high-spending travelers, further driving retail market recovery and growth [1] Group 3: Industrial Market Trends - Industrial rents are forecasted to decrease by approximately 10% by the end of 2025 due to weak demand and increasing vacancy pressures [1] - The market is undergoing structural changes, and policy-driven revitalization measures will take time to have a substantial impact on supply [1] Group 4: Investment Climate - The optimization measures of the Capital Investment Entrant Scheme (CIES) announced in the Policy Address are expected to boost investor confidence and attract capital inflows into the Hong Kong real estate market [2] - High-end residential properties, subdivided offices, and street shops are anticipated to benefit from these developments, with student accommodations and redevelopment projects also becoming market focal points [2] - Transaction volumes in the real estate market are expected to remain stable [2]