Core Insights - The Hong Kong property market is gradually recovering due to a decrease in interest rates, leading developers to actively sell remaining inventory and accelerate stock clearance [1][2] - The number of unsold primary residential units in Hong Kong has decreased to approximately 19,690 units as of September 24, down 185 units from the previous month, marking a nearly 1% decline and remaining below 20,000 units for the third consecutive month [1] - The total unsold inventory has decreased by over 3,100 units, or 14%, compared to the peak of 22,816 units at the beginning of the year [1] Inventory Changes - Significant changes in unsold primary units have been observed across various districts, with the most notable decline in New Territories West, where inventory dropped from 4,147 units to 2,902 units, a decrease of approximately 30% [1] - Kowloon also experienced a decline, with unsold units falling from 12,763 to 10,556, representing a 17% drop [1] - The only district to record an increase in unsold units was New Territories East, which rose from 2,230 to 2,858 units, an increase of 28.2% [1] Market Performance - The confidence of buyers has significantly improved, leading to a strong performance in the primary market, with over 15,000 transactions recorded in the first nine months of the year, a 63% increase compared to the total of 9,200 transactions in 2022 and a 39% increase from 10,790 transactions in 2023 [2] - The cumulative transaction volume has reached 95% of last year's total of 15,839 transactions, with expectations to exceed 20,000 transactions by the end of the year, potentially setting a new record since the implementation of the new residential sales regulations in 2013 [2] Developer Strategies - Developers are expected to accelerate sales by adopting pricing strategies closer to market rates to attract buyers, especially as the interest rate reduction cycle unfolds [2] - It is anticipated that the unsold inventory will decrease to around 18,000 units by the end of the year, with some projects launched during the market peak recently transitioning to completed units and reducing prices by 20% to 30% to stimulate sales [2] - In September, the primary market recorded over 1,500 transactions, with more than 60% being completed units, involving nearly 1,000 units [2]

Group 1 - The current state of US-China relations is stable, and Hong Kong's interbank offered rate (HIBOR) is expected to remain around 1.1% to 2% until at least Q3, positively impacting the Hong Kong economy [1] - The luxury property market in Hong Kong has reached its bottom in Q1, with the overall property market expected to bottom out in Q2, and the commercial market potentially bottoming out by Q4 or year-end [1] - In the first half of the year, Hong Kong's primary property transactions reached approximately 9,306, a 34% increase from the previous half and an 8% increase year-on-year, marking a six-year high [1] Group 2 - In the luxury segment, the number of transactions for super luxury properties (over HKD 50 million) in Hong Kong Island reached about 83 in the first half of the year, a 17% increase from the previous half and a 19% increase year-on-year, marking a seven-year high [2] - The Peak South District recorded approximately 76 transactions in the first half of the year, a 38.18% increase from the previous half, achieving a three-and-a-half-year high, although the transaction amount decreased by about 20.53% [2]