Cheung Kong (01113) Zhao Guoxiong: The price of Hong Kong's first-hand property has basically stabilized, and a rate cut can improve the confidence of residents in entering the market.

According to media reports, Cheung Kong Holdings (01113) Executive Director Zhao Guoxiong stated during a program that the prices of first-hand properties in Hong Kong have basically stabilized, and he believes that a rate cut can improve the confidence of citizens in entering the market. Zhao Guoxiong predicted that the Federal Reserve will cut rates by 0.25% next week. If the rate is cut, it will be good for developers, but the decision to launch new properties is not only based on rate cuts. He mentioned that the group insists on selling when the time is right, and if they obtain pre-sale agreements and the market conditions are suitable, they will launch new properties. He also believes that once the United States starts cutting rates, citizens' perceptions of the property market will be more positive, improving confidence in entering the market. He stated that there is definitely demand in the property market, and developers should consider the affordability of citizens and the economic situation when pricing properties. As long as the price is right, citizens will enter the market. He gave the example that Cheung Kong recently launched two large projects with good response, emphasizing that the group is not slashing prices, but adjusting prices based on market conditions. In addition, he mentioned that construction costs per square foot are as high as 5000 to 6000 Hong Kong dollars, plus land costs and other expenses, the prices of first-hand properties are already close to cost price. Considering reasonable profit margins, he believes that the prices of first-hand properties have basically stabilized and there may not be significant price cuts. Prices may fluctuate based on season, demand, and quality of the properties, but the fluctuations will only be within a few percentage points. Regarding cases of properties failing to sell, Zhao Guoxiong pointed out that the current market outlook is uncertain, making it difficult for developers to make decisions when buying land as they have to consider current and future data. The government, on the other hand, considers historical data, leading to discrepancies between the two parties and resulting in cases of properties failing to sell.