UBS: Three major structural positives can help drive Hong Kong property prices up to 10% within the year.

On May 11, Raymond Cheng, the research director of the real estate industry in the Asia-Pacific region at UBS, stated at a media briefing that this year, Hong Kong residential property prices will increase by 5% to 10% due to structural factors such as the inflow of mainland talent and potential return of immigrants, and office rents in the Central business district will also rise by 2% to 3%. Cheng pointed out that the Hong Kong residential market is experiencing three structural positives. Firstly, Hong Kong's attractiveness to mainland talent continues to increase, bringing in a stable population influx. Secondly, some immigrants returning will generate new housing demand. Thirdly, the sharp decline in Hong Kong property prices over the past five years has led to a significant reduction in new residential projects, with only 8,000 to 9,000 privately-owned residential units expected to be launched each year in the next two to three years, compared to an annual sales volume of about 20,000 units, providing solid support for rents and property prices.