Core Viewpoint - UBS reports an improvement in the office market due to better hiring conditions in the financial sector, predicting a recovery in the Central Grade A office market driven by increased recruitment and reduced supply [1] Group 1: Market Outlook - The Central Grade A office market is expected to recover first, with signs of bottoming out and a rebound anticipated [1] - The overall Hong Kong office market is projected to reach a turning point [1] Group 2: Rental Forecast - UBS forecasts that the rental decline for Central Grade A offices will narrow to 5% this year, compared to a 12% drop last year [1] - For the next two years, Grade A office rents across Hong Kong are expected to decline between 3% to 5%, an improvement from last year's 9% drop [1] Group 3: Investment Recommendations - UBS assigns a "Buy" rating to Swire Properties (01972), which is involved in Central Grade A offices, while giving a neutral rating to Swire A (00019) and Hongkong Land [1] Group 4: Market Data - The number of licenses increased by approximately 1,300 year-on-year as of June 2025, attributed to strong stock market performance this year [1] - The financial sector accounts for 57% of office tenants, indicating its significant impact on the office rental market [1]