Wu Tianhai from WHARF REIC (01997) holds a cautious outlook on the prospects of the Hong Kong shopping malls, office buildings, and hotels.

Hong Kong retail sales have dropped for 11 consecutive months, with the market continuing to remain weak. WHARF REIC (01997) Chairman and Executive Director Stephen Ng Tin-hoi stated that it has been over 2 months this year, and the market conditions are not much different from last year, showing an overall downward trend. Therefore, he holds a cautious attitude towards the future prospects of Hong Kong shopping malls, office buildings, and hotels. Currently, there is not enough confidence to see an improvement in the market in the first half of the year, and there are no signs of a rebound. When asked when he will regain confidence in retail and office buildings, Ng Tin-hoi pointed out that if the property market improves, many people will return to the market. Currently, it all depends on tenant reactions. If office tenants start expanding their operations or new overseas tenants come to Hong Kong to develop their business, retail sales may stop declining and rise again, leading to more confidence. However, the expected rebound has not yet occurred. Ng Tin-hoi expects that rental prices for commercial properties will continue to decline this year, even if there is good news in the physical market, it will not be immediate. Therefore, he can only remain flat in the second quarter, hoping for a better market response, with improvements expected in the second half of the year. As for hotels, Ng Tin-hoi mentioned that there is still a shortage of manpower in the hotels, with occupancy rates remaining stable, but room prices have been continuously declining, without any signs of improvement.