Meridian: Trading in the Hong Kong property market gradually stabilizing, and the number of residential mortgages will resume positive growth.

Mr. Cao Deming, Deputy Chief Vice President of mReferral Mortgage Brokerage Services, stated that in the fourth quarter of last year, the property market in Hong Kong saw an increase in transactions, leading to a slight rise in the number of new mortgage applications in January. The new Budget announced an increase in the threshold for stamp duty from HKD 300 million or below to HKD 400 million or below, which is believed to attract more first-time buyers into the market, benefitting the property market development. It is expected that property transactions will gradually stabilize and residential mortgage numbers will resume growth. Mr. Cao mentioned that recently, major banks have introduced fixed-rate mortgage plans for a limited time, offering cash rebates for mortgage customers. With the slight increase in incentives for refinancing, it is anticipated that the amount and number of refinancing applications may stabilize. He pointed out that the fixed-rate mortgage plans offered by major banks have a fixed rate of 3.18% for a 3-year term and 3.03% for a 5-year term, which is lower than the prevailing rates of 3.5% for H- and P-tier mortgages in the market. This is expected to attract some customers to choose these plans, leading to a potential increase in the proportion of fixed-rate mortgage applications.