Core Viewpoint - The Hong Kong real estate market has shown signs of recovery in 2025, with significant increases in transaction volume and prices, indicating a positive outlook for 2026 [3][5]. Group 1: Market Performance - In 2025, Hong Kong recorded approximately 62,800 residential property transactions, totaling around HKD 519.8 billion, marking year-on-year increases of 18.3% and 14.4% respectively, the highest since 2021 [3]. - The new home market saw over 20,600 transactions in 2025, a year-on-year increase of over 20%, with total sales amounting to approximately HKD 225.57 billion, up 8.2% from the previous year [3]. - The secondary market also reached new highs, with 39,843 transactions totaling HKD 291.72 billion, both figures being the highest since 2021 [3]. Group 2: Price Trends - The average property prices in Hong Kong increased by approximately 3% in 2025, while rental prices rose by about 4%, reflecting a generally positive market sentiment [3][5]. - The market is perceived to have passed its lowest point, with expectations of continued price increases in 2026 [5][6]. Group 3: Buyer Demographics - The influx of mainland buyers has significantly supported the Hong Kong market, with over 13,500 transactions recorded from Mandarin-speaking buyers in 2025, a year-on-year increase of over 10% [5]. - The total transaction value from these buyers reached approximately HKD 136.4 billion, marking the highest level since records began in 1995 [5]. Group 4: Future Outlook - Morgan Stanley projects a 10% increase in Hong Kong residential prices for 2026, supported by a solid economic growth momentum and a positive feedback loop between the stock and real estate markets [6][7]. - Industry experts express confidence in the market's continued healthy development, citing multiple favorable factors such as rising stock markets and potential interest rate cuts in the U.S. [7].

Market Overview - In July, Hong Kong's new property market remained active with over 2,000 transactions, representing a month-on-month increase of over 30% [2] - New World Development reported strong business momentum at the beginning of the new fiscal year, with excellent sales results from various projects in mainland China and Hong Kong, leading to steady cash flow [2] Mainland Business - The high-end residential project Tianhui Xi in Shanghai successfully delivered all 448 units, selling out after two rounds of sales [5] - In Guangzhou, the new landmark project Yaosheng New World Plaza is delivering residential, commercial, and Grade A office spaces, showcasing New World's strong delivery capabilities [5] - The K11 ECOAST in Shenzhen launched multiple summer activities and added nearly 20 new brands, enhancing tenant diversity and customer experience [5] Awards and Recognition - Shanghai K11 ELYSEA and Ningbo THEPARK by K11Select won multiple awards at the BETTER FUTURE Hong Kong Design Awards 2025 for their architectural excellence [6] - New World Development's sustainability efforts were recognized with awards for the Hangzhou New World City Art Center and the "2030+ Sustainable Development Vision" [6] Hong Kong Business - The luxury residential project DEEP WATER PAVILIA滶晨II in Hong Kong sold 82 out of 88 units in its first round, achieving a sales rate of 93% [8] - The new landmark luxury residential project 柏蔚森 in Kai Tak has sold over 600 units since its launch, generating over HKD 4.2 billion in sales [9] - The core cultural landmark luxury project STATE PAVILIA皇都 sold out all units in the "皇都维港珍藏大宅" series, with an average price of nearly HKD 40 million [9] Events and Promotions - New World Development hosted two major international events at K11 MUSEA during the summer, including the "CHIIKAWA DAYS" exhibition and the CR7® LIFE Museum, attracting significant visitor traffic [10]

Core Viewpoint - New World Development has achieved remarkable sales results in various projects in mainland China and Hong Kong at the beginning of the new fiscal year, steadily accelerating cash flow and actively promoting residential project deliveries [1][2][3] Group 1: Mainland Business Performance - Several projects are leading the regional market, with two benchmark projects successfully delivered, including Shanghai Tianhui Xi and Guangzhou Yaosheng New World Plaza [1] - Guangzhou Yaosheng Zunfu has launched the second phase of distinctive units, with areas ranging from approximately 88 to 245 square meters, while Guangzhou New World Guanghui Zunfu has launched duplex units ranging from 92 to 125 square meters [1] - Shenzhen K11 ECOAST has attracted nearly 20 new brands through summer activities, enhancing its business offerings [1] - Shanghai K11 ELYSEA and Ningbo THE PARK by K11 Select have won gold awards at the BETTER FUTURE Hong Kong Design Awards 2025 in their respective categories [1] Group 2: Hong Kong Business Performance - The first round of sales for the South Island Phase 5 "DEEP WATER PAVILIA滶晨II" saw 82 out of 88 units sold, with total sales reaching nearly 8.8 billion HKD as of July 30 [2] - The new landmark luxury residence "THE PAVILIA FOREST柏蔚森" has sold over 600 units, generating sales exceeding 4.2 billion HKD, with the first delivery of units starting in September [2] - The luxury project "STATE PAVILIA皇都" has sold out all "皇都维港珍藏大宅" units, with an average price close to 40 million HKD [2] Group 3: Future Outlook - With ongoing business development and more new projects entering the market, New World is expected to see further performance progress in the new fiscal year [3] - The continuous launch of "滶晨II" and "THE PAVILIA FOREST柏蔚森" in the Hong Kong market is anticipated to maintain recent market momentum [3] - In the mainland market, projects in Guangzhou and Shenyang are continuing their strong sales momentum, with the first K11 Select project in Guangzhou set to debut [3] - The company will continue to adhere to a high-quality development strategy, focusing on its core business and pursuing stable growth in performance [3]