Core Viewpoint - The Hong Kong real estate market is showing signs of stabilization and recovery, driven by declining interest rates, population influx, and favorable policies, with experts predicting continued high transaction activity in the future [1][2][3]. Group 1: Market Performance - In the second quarter of this year, both transaction volume and prices in the Hong Kong real estate market have gradually stabilized, with July seeing a 37.1% year-on-year increase in all types of property sales contracts registered [2]. - The number of residential property sales contracts registered in July reached 5,766, marking a 54.8% year-on-year increase [2]. - The private residential price index showed a slight monthly increase of 0.03% in June, marking three consecutive months of growth, which reduced the year-to-date price decline to 0.86% [2]. Group 2: Economic Factors - The decline in interest rates has significantly lowered mortgage costs, with current mortgage rates around 2%, thus supporting housing demand [2]. - The Hong Kong Interbank Offered Rate (HIBOR) has dropped significantly since May, with the one-month HIBOR reported at 1.73% as of August 4 [2]. Group 3: Talent Influx and Rental Demand - The introduction of talent attraction programs has led to an influx of over 75,000 high-end talents and their families into Hong Kong by the end of 2024, boosting rental and purchasing demand [3]. - The rental index for private residential properties increased by approximately 0.31% month-on-month in June, marking a continuous rise for seven months, with a cumulative increase of 1.61% in the first half of the year [3]. Group 4: Mainland Buyers - The relaxation of property purchase restrictions has made it easier for mainland buyers to participate in the Hong Kong real estate market, with a notable increase in their activity [4]. - In June, mainland buyers registered 1,237 transactions in the Hong Kong residential market, representing a month-on-month increase of approximately 21.9%, with transaction amounts reaching around HKD 11 billion, up about 14.4% [4]. Group 5: Future Outlook - The positive fundamentals of Hong Kong's economy are expected to continue supporting the stabilization of the real estate market [5]. - Factors such as favorable stock market conditions, sustained low HIBOR, and the upcoming launch of multiple new developments are anticipated to maintain strong transaction momentum in the primary market [5].

世邦魏理仕香港估值及咨询服务部执行董事郭伟恩表示，预期发展商将积极推出500万港元以下的房 产，以利用此一趋势来推销货尾单位。公司预计未来几个月住宅物业成交量将保持活跃并稳定增长，与 去年同期相比，2025年下半年大概率将录得增长。 自6月以来，一手市场成交量有所回升，整体交易占比逐步上升。截至2025年6月，香港房屋局的数据显 示，已落成楼宇但仍未售出的私人住宅单位数目在过去3个月共下降了400个。尽管数字已攀升至27200 个，但已接近高峰。市场每月持续吸收1000至2000个新单位。因此，公司预计未来库存水平将持续下 降。 根据香港土地注册处数据，2025年7月住宅物业成交量按月微跌3.2%至5766宗。虽然成交量微跌，但住 宅物业已连续五个月超过5000宗成交，是自2021年下半年楼市低迷以来首次出现的稳定复苏迹象。 香港特区政府将400万港元及以下住宅物业的印花税降至100港元的政策，带动住宅交易活跃。根据公司 的分析，2025年3月至7月期间，价值在300万至400万港元之间的住宅物业最为受惠，成交量与去年同期 相比增幅达50.5%；其次为"低于300万港元"和"400万至500万港元"的单位，成 ...

Group 1 - The Hong Kong property market is experiencing a recovery due to a series of stimulus policies, with a significant increase in property transactions in June, showing a 12.9% month-on-month rise and a 38.6% year-on-year increase [1] - Residential property transactions accounted for 5,955 of the total contracts in June, reflecting a 16.7% month-on-month increase and a 54.4% year-on-year increase [1] - The market is seeing strong sales performance in new properties, with many projects selling out in the first round, and a notable recovery in the secondary market for lower-priced properties [1] Group 2 - The removal of property cooling measures in February last year has significantly reduced purchasing costs, leading to a surge in market activity [2] - The Hong Kong government has introduced several measures in the 2024 policy address to further stimulate the property market, including relaxing residential loan requirements and allowing investment immigrants to purchase residential properties [2] - The number of transactions by mainland buyers has increased significantly, with a reported 11,638 transactions in 2024, representing a 90% year-on-year increase [2] Group 3 - Major real estate agencies are entering the Hong Kong market, focusing on new property projects and emphasizing low total price and high rental yield properties [3] - The reduction in interbank borrowing rates has lowered purchasing costs, prompting developers to launch new projects with attractive pricing strategies [3] - Overall transaction volume in the Hong Kong property market is expected to remain stable compared to last year, with property prices projected to fluctuate within a range of ±3% [3]

Core Viewpoint - The Hong Kong real estate market is experiencing a recovery due to a series of stimulus policies implemented by the government [1]. Group 1: Market Performance - In June, the total number of property sale agreements submitted to the Land Registry reached 7,271, a month-on-month increase of 12.9% and a year-on-year increase of 38.6% [2]. - Among these agreements, residential property sales accounted for 5,955, with a month-on-month increase of 16.7% and a year-on-year increase of 54.4% [2]. - The second quarter saw 1,775 transactions of second-hand properties along the railway lines, representing a month-on-month increase of approximately 36.5% [4]. Group 2: Government Policies - The Hong Kong government has removed all property cooling measures, leading to a significant reduction in purchasing costs and a surge in market activity [4]. - The Chief Executive's policy report introduced several measures to further stimulate the housing market, including relaxing residential loan conditions and allowing investment immigrants to purchase residential properties [4]. - The budget proposal raised the stamp duty exemption threshold from HKD 3 million to HKD 4 million, benefiting about 15% of property transactions [4]. Group 3: Buyer Trends - Mainland buyers have become a significant force in the market, with 11,638 transactions recorded in 2024, amounting to over HKD 130 billion, marking a year-on-year increase of 90% in transaction volume and 67% in value [5]. - The demand for properties with low total prices and high rental yields is increasing, attracting more buyers from mainland China [5]. Group 4: Market Outlook - The residential property market has shown signs of stable recovery, with transaction volumes exceeding 5,000 for four consecutive months, the first such occurrence since the second half of 2021 [4]. - The overall transaction volume in Hong Kong's real estate market is expected to remain stable compared to last year, with property prices projected to fluctuate within a range of ±3% [5].

Group 1: Hong Kong Residential Market - The residential property market in Hong Kong is under pressure due to a large amount of unsold inventory, leading developers to offer discounts to clear stock [1] - It is predicted that residential property prices in Hong Kong will decline by up to 3% this year [1] - The current interest rates have fallen below 3%, reducing loan expenses and attracting more investors to enter the market [1] - Rental prices for general residential properties are expected to rise by 3-5% driven by demand from overseas talent and non-local university students [1] - An estimated land sale revenue of HKD 7-9 billion is anticipated for 2025-2026, with private development project premium land prices expected to rebound to HKD 8-10 billion [1] - Approximately 17,500 unsold primary units exist in the market, with an additional 30,280 primary residential units expected to be launched in the next 18 months [1] - The market's purchasing power is skewed towards new developments, putting continued pressure on secondary property prices in the short term [1] Group 2: Hong Kong Luxury Market - The luxury property market in Hong Kong is expected to remain stable, with properties priced between HKD 20 million and HKD 40 million projected to see a price decline of 0% to 5% [2] - Properties priced above HKD 40 million are expected to maintain stable prices [2] - The rental activity in the Mid-Levels area is relatively active, particularly for units sized between 800 to 1,000 square feet, which are favored by families needing extra space [2] - Overall, luxury rental prices are forecasted to increase by 0% to 3% this year [2]

Group 1: Market Performance - Hong Kong's private residential property price index reached 285.7 points in April, reflecting a month-on-month increase of 0.35%, ending a four-month decline [1] - The number of transactions for new residential properties in Hong Kong reached 7,439 units in the first half of the year, a 7.3% increase compared to the second half of last year, marking the highest level since the second half of 2021 [1] - The demand for two-bedroom units has been strong, with 3,606 units sold this year, representing a year-on-year increase of 14.4% [1] Group 2: Rental Market - The rental index for private residential properties in Hong Kong increased by 0.31% in April, marking the fifth consecutive month of growth [2] - The average rent per square foot for private residential properties was reported at HKD 38.02 in April, up approximately 0.4% month-on-month, continuing a three-month upward trend [2] - The upcoming traditional rental peak season is expected to further drive rental prices, with an influx of mainland students seeking accommodation [2] Group 3: Government Policies - The Hong Kong government announced the removal of all property market "cooling measures," eliminating additional stamp duties on residential property transactions [2] - The government raised the property value threshold for a HKD 100 stamp duty from HKD 3 million to HKD 4 million, which is expected to benefit about 15% of property transactions, resulting in an annual revenue reduction of approximately HKD 400 million for the government [2]

Financial Performance - CSI achieved approximately HK$896 million in sales for 1H FY2023 to maintain a healthy cash flow [12] - Gross revenue from property business increased by 132% from HK$100 million in 1H FY2022 to HK$231 million in 1H FY2023 [15] - Gross profit increased by 137% from HK$53 million in 1H FY2022 to HK$125 million in 1H FY2023 [15] - Profit from property joint ventures/associates increased by 167% from a loss of HK$230 million in 1H FY2022 to a profit of HK$154 million in 1H FY2023 [15] - Profit attributable to equity holders decreased by 52% from HK$128 million in 1H FY2022 to HK$62 million in 1H FY2023 [15] Balance Sheet and Credit Metrics - The company has properties and related assets worth HK$24420 million as of September 30, 2022 [16] - Cash and bank balances amounted to HK$2622 million [16] - Net debt to total assets ratio was 33% as of 1H FY2023, compared to 27% in FY2022 [18] - EBITDA to interest expenses was 15x in 1H FY2023 [18] Strategies and Portfolio - The company focuses on high-quality residential and commercial real estate portfolio [58] - The company is managing disposal pipeline to recycle capital and crystalize profit [58] - The company maintains prudent financing with strong asset coverage and liquidity [58]

Financial Performance & Sales - CSI Properties achieved approximately HK$2,377 million in sales for FY2023, including Joint Ventures and Associates, to ensure strong cash flow[12] - The company's gross revenue from property business increased by 91% from HK$420 million in FY2022 to HK$804 million in FY2023, with property sales contributing HK$546 million and rental income HK$258 million[15] - Gross profit saw a significant increase of 1,203%, rising from HK$31 million in FY2022 to HK$404 million in FY2023[15] - Profit attributable to equity holders decreased by 71% from HK$1,156 million in FY2022 to HK$336 million in FY2023, mainly due to one-off gains in FY2022 from the sale of a 49% interest in Novotel Hotel[15] Balance Sheet & Credit Metrics - The company maintains a strong balance sheet with properties and related assets valued at HK$23,628 million as of March 31, 2023[16] - Cash and bank balances, including cash held by securities brokers, amounted to HK$3,162 million as of March 31, 2023[16] - Net debt to total assets ratio increased from 27% in FY2022 to 28.8% in FY2023[18] - EBITDA to interest expenses ratio decreased from 2.4x in FY2022 to 1.4x in FY2023[18] Strategies & Portfolio - The company focuses on prime Hong Kong properties and manages a high-quality residential and commercial real estate portfolio[15, 57] - CSI Properties is actively managing its disposal pipeline to recycle capital and crystallize profit, with completed sales accounting for over HK$2,376 million in FY2023[57, 66] - The company has a diversified funding sources, including equity and debt, and well-managed bank borrowings, with total bank borrowings at HK$10,080 million[39, 40]

Financial Performance - CSI made sales of approximately HK$3,128 million and had approximately HK$794 million of unrecognized contracted sales commitment for FY2024[12] - Gross revenue from property business increased by 96% from HK$804 million in FY2023 to HK$1,579 million in FY2024[14] - The company reported a loss attributable to equity holders of HK$(426) million in FY2024, compared to a profit of HK$336 million in FY2023, mainly due to impairment loss in respect of amount due from a joint venture project[14] - The company's EBITDA decreased from 1.4x to 1.2x[18] Balance Sheet and Liquidity - The company maintains a strong balance sheet with properties and related assets valued at HK$22,870 million as of March 31, 2024[16] - Cash and bank balances, including cash held by securities brokers, amounted to HK$2,524 million[16] - Net debt to total assets ratio increased slightly from 28.8% in FY2023 to 29.2% in FY2024[18] - Total bank borrowings amounted to HK$7,882 million as of March 31, 2024, with 49.1% due within 1 year and 50.8% due between 1-5 years[40] Strategies and Outlook - Management's top priority is to focus on making continuing asset sales to recycle capital & crystalize profit[62] - The company has a solid pipeline of high-quality residential and commercial projects to provide ample liquidity and EBITDA[62] - The company estimates the current value of residential projects to be sold amounts to approximately HK$5 billion per CSI's stake[65]

Core Viewpoint - The Hong Kong real estate market is experiencing a shift with a notable increase in rental prices while property prices are declining, leading to a potential "buying opportunity" for first-time homebuyers [1][2][10]. Market Trends - The private residential price index in Hong Kong dropped to 284.2 points in March 2025, down 0.49% from February and 8.2% year-on-year, marking an 8.5-year low [1]. - In contrast, the rental market is thriving, with the rental index reaching 193.3 points, and average rents increasing by over 5.5% in 2024 [1][2]. Transaction Dynamics - In the first four months of 2025, the number of transactions for properties priced at 4 million HKD or below surged by approximately 346%, totaling 1,003 transactions [3][4]. - The introduction of a new stamp duty exemption for properties valued up to 400,000 HKD is expected to save buyers up to 60,000 HKD, further stimulating the market [4][5]. Developer Strategies - Developers are focusing on lower-priced properties, with the share of new developments priced at 4 million HKD or below increasing from 3.4% in 2024 to 18.2% in 2025 [4][6]. - The successful sales of new developments, such as Vanke's project in Tai Po, indicate strong market demand, with over 65 times subscription for some units [5][6]. Second-Hand Market Performance - The second-hand property market is facing a decline, with transaction volumes for the top ten estates dropping significantly, with some estates seeing declines over 50% [7][10]. - The CCL index, which reflects second-hand property prices, decreased by 0.08% in late April, indicating ongoing price pressures [12]. Future Outlook - Analysts predict that the second-hand market may stabilize and potentially see price increases in the latter half of 2025, driven by the absorption of lower-priced inventory and favorable economic conditions [17][18]. - The overall residential property transaction volume in Hong Kong is expected to rise by 5-8% in 2025, with a potential price rebound of around 5% [18].