Hong Kong Property: Hong Kong housing prices are expected to rise by approximately 10% to 15% in 2026.

Midland Holdings CEO (Residential) and Hong Kong Real Estate CEO Matheus Yang said that with the expectation of interest rate cuts and the market confidence returning, it is estimated that the housing prices in Hong Kong will rise by about 10% to 15% in 2026. Matheus believes that based on past experiences, the Middle East conflict has little direct impact on Hong Kong property prices. Instead, he anticipates that positive news from the two sessions will stabilize the Hong Kong property market, and with the rise in the RMB exchange rate, it can increase the purchasing power of "Beishui" (mainland Chinese buyers). He expects that the number of registered professionals or mainland buyers and the transaction amount will hit record highs, with the transaction amount expected to challenge HK$150 billion. Matheus pointed out that although the war affects the investment atmosphere in the market, there are cases of customers exchanging stocks for properties, as well as foreign clients buying properties in Hong Kong. Therefore, he believes that the Hong Kong property market will not be affected. He expects that the first-hand transaction volume in March this year will increase by 70% to about 2,400 units; the first quarter will exceed 6,000 units; and the whole year is expected to reach 22,000 units. He stated that the supply and demand of first-hand properties are trending towards balance, with the unsold inventory at the end of February dropping to about 16,500 units, reflecting the successful destocking strategy of developers.