Gao Li: This year, the high supply of various types of properties in Hong Kong is hindering the rebound of property prices.

Lee Yim-yan, head of the Hong Kong Research Department and retail consultant of Kauli, pointed out that this year, the supply of various types of properties including residential and commercial is high, hindering the rebound of property prices. While residential demand is relatively ideal, it is expected that property prices will stabilize, but commercial rents will continue to fall. Overall, the property market showed a general performance last year, with prices falling for both residential and commercial properties. Lee Yim-yan pointed out that the trend of the property market is closely related to supply, and there is rigid demand in the residential market. However, prices may not rebound significantly this year due to the high supply. "The supply of first-hand residential properties remains high, with an expected new supply of over 20,000 units. The number of completed or under construction units exceeds 100,000. Considering the past sales of about 16,000 units per year, it will take time to digest the demand, posing the biggest obstacle to property price rebound." She mentioned that developers hold a lot of inventory, some even facing financial pressures. The pricing strategy of new developments may match or even undercut market prices to attract buyers, putting pressure on second-hand property prices. In addition, she pointed out that interest rates are also crucial. Although interest rates have been reduced by a total of 100 basis points by 2024, uncertainties remain, including the interest rate trend in 2025, as the new US president's policy towards China is still uncertain. In the residential market, she believes that the market conditions have recently improved, with a positive atmosphere and strong demand for residential properties. It is expected that current property prices have nearly bottomed out, and residential property prices will stabilize in the first half of this year.