Core Viewpoint - The commercial property market in Hong Kong is expected to rebound significantly in 2025 and continue its upward trend into 2026, driven by stock market recovery, economic improvement, declining interest rates, and favorable policies [1][2][3]. Group 1: Market Performance in 2025 - In 2025, Hong Kong recorded a total of 4,468 commercial property transactions, marking a 31% increase from the historical low of 3,414 transactions in 2024, indicating a successful rebound after three consecutive years of decline [1] - The total transaction value for commercial properties in 2025 reached HKD 63.221 billion, a 16% increase compared to the previous year, surpassing the HKD 60 billion mark for the first time since 2021 [1] - The industrial property segment saw a total of 2,281 transactions in 2025, a 26% increase from the historical low of 1,814 in 2024, with a total contract value rising to HKD 16.571 billion, reflecting a 5% increase [2] - The overall commercial building transactions amounted to 1,074, a 63% increase from 657 in the previous year, with the total contract value soaring by 82% to HKD 27.903 billion [3] - The retail property segment recorded 1,113 transactions, an 18% increase year-on-year, although the total contract value decreased by 20% to HKD 18.747 billion due to high-value transactions in the previous year [3] Group 2: Outlook for 2026 - The commercial property market is expected to see a further increase in transaction volume by 17% in 2026, aiming for 5,240 transactions, and a corresponding increase in transaction value to approximately HKD 74 billion [1] - The industrial property segment is projected to rise by 14% in transaction volume, reaching 2,600 transactions, with a 15% increase in transaction value to around HKD 19 billion [2] - The commercial building market is anticipated to grow by 34%, targeting 1,440 transactions, with the total contract value expected to increase by over 25% to challenge the HKD 35 billion level [3] - The retail property market is forecasted to reach 1,200 transactions in 2026, an 8% increase, with the total transaction value expected to approach HKD 20 billion, reflecting a 7% year-on-year growth [4]