CRIC: One sign, multiple trips to Hong Kong reopened to help Hong Kong property market.

Chen Yongjie, Vice President and President of the Residential Department of Asia-Pacific Region of CRIC, stated that the interest rate cut in the United States in October benefited the housing market as Hong Kong banks followed suit, directly easing the burden on homebuyers. In addition, with the depreciation of the RMB against the Hong Kong dollar, the Hong Kong index in the Greater Bay Area saw the largest increase in a year and a half, with the November index reaching 93.65, a 2.55% increase compared to the previous month. With the support of national policies, the reopening of Shenzhen residents' multiple visits to Hong Kong in December is believed to promote Hong Kong's retail and catering industries, indirectly assisting the property market. The Hong Kong property market is expected to move in sync with the Greater Bay Area, with prices and transaction volumes steadily rising. Chen Yongjie pointed out that in November 2024, the CRIC Greater Bay Area Index reached 96.36 points, a 1.34% increase month-on-month, marking a consecutive two-month increase and a cumulative increase of 2.29%. The increase is believed to be mainly driven by Hong Kong and Macao regions, with growth rates of 2.55% and 1.59% respectively in November due to exchange rate factors, leading to an expansion of the Greater Bay Area index and the largest increase in a year and a half for both the Greater Bay Area and Hong Kong indices. Among the 12 indices, 4 indices decreased while 8 indices increased. The decrease in indices ranged from 0.3% to 1.7%, with a total of 8 indices recording increases in November, ranging from 0.03% to 2.55%. The four major central cities all reported increases, marking the first time since May 2023. He mentioned that in late September, a series of measures were introduced by the central government to rescue the market, and from October to November, further measures were implemented, successfully boosting the Greater Bay Area property market with both prices and transaction volumes rising. In November, the number of second-hand property transactions in Guangzhou reached 11418, a 10% increase from October, marking a one-year high. The rebound in Shenzhen was even more significant, with the number of second-hand property transfers reaching 7125, a 16.5% increase from October, also hitting a four-year high. In a recent meeting of the Central Political Bureau, it emphasized the need to stabilize the property and stock markets. Chen Yongjie believes that the central government's stance on stabilizing the property market can enhance the confidence of citizens in entering the market, and predicts that property prices and volumes in the Bay Area will steadily rise.