September Hong Kong Central City Rental Index CRI report 3.47% Short-term return rate has peaked.

Yang Mingyi, Senior Joint Managing Director of the Research Department of Midland Realty, pointed out that the latest report of the Midland City Rental Index CRI return rate in September was 3.47%, an increase of 0.04 percentage points month-on-month, a total increase of 0.38 percentage points for 5 consecutive months, reaching a new high in over 12 and a half years, surpassing the level in January 2012. As we enter the off-peak season of the fourth quarter for leasing, the rental price increase momentum is hindered and softened, while property prices have stabilized after the interest rate cuts. Yang believes that the short-term return rate has peaked. With support from users, rental prices remain high and property prices have begun to rise slightly. Looking ahead, the CRI return rate is expected to stabilize at 3.4%. Starting from September this year, Hong Kong's major banks entered an interest rate reduction cycle, lowering the best lending rate by 0.25% to H-prime falling to 3.875%. At the same time, the rental return rate is 0.405%, narrowing the gap between the two for 5 consecutive months. In November, the banks cut interest rates by 0.25% for the second time, and it is expected that the gap between the CRI return rate and H-prime rate will further narrow to around 0.23%, making it more profitable to rent. In September, CRI_Mass return rate was reported at 3.65%, an increase of 0.04 percentage points month-on-month. The CRI (small and medium-sized units) return rate was reported at 3.61%, an increase of 0.03 percentage points month-on-month. Both the CRI_Mass return rate and the CRI (small and medium-sized units) return rate have reached new highs after January 2012. The CRI (large units) return rate was reported at 2.74%, an increase of 0.04 percentage points month-on-month, reaching a new high after August 2012. In terms of the four districts, the CRI_Mass return rate for Hong Kong Island was reported at 3.60%, an increase of 0.11 percentage points month-on-month. The CRI_Mass return rate for Kowloon was reported at 3.68%, an increase of 0.06 percentage points month-on-month. The CRI_Mass return rate for East New Territories was reported at 3.62%, a decrease of 0.02 percentage points month-on-month. The CRI_Mass return rate for West New Territories was reported at 3.68%, a decrease of 0.02 percentage points month-on-month. The return rates for Hong Kong Island, Kowloon, East New Territories and West New Territories are at high levels after October 2011, January 2012, February 2014, and September 2012 respectively. Among the 138 constituent estates, 22 estates had rental returns of 4% or higher in September, an increase of 4 from August. Parkvale Garden saw a rise in rent and a drop in prices, pushing the return rate to 5.16%, marking the first time since January 2012 that an estate has had a return rate above 5%, compared to 5.30% for Mayfair Garden in 2012. Estates with returns above 4.5% include: Riverpark Garden at 4.90%, Homeville at 4.83%, Tai Po Centre at 4.81%, Whampoa New Village at 4.62%, Chuen Wai Garden at 4.61%, Nam Fung New Village at 4.54%, and King Yee Garden at 4.54%. In terms of major estate returns, Choi Hung Village at 3.88%, Hong Yi Garden at 3.85%, South Horizons Peninsula at 3.73%, City One Shatin at 4.26%, Tai Wo Hau Village at 4.47%, Sun Yuen Lai Garden at 4.03%, and Yoho Town at 3.20%.