Zhongyuan Real Estate: The reopening of multiple transactions with one signature in Hong Kong will benefit the Hong Kong property market

According to the Zhitong Finance APP, Chen Yongjie, Vice Chairman of Central Plains Real Estate Asia Pacific and President of the Residential Department, stated that benefiting from the interest rate cut in the United States in October, Hong Kong banks also followed suit, directly alleviating the mortgage burden for property buyers. Coupled with the depreciation of the Renminbi against the Hong Kong dollar, the Hong Kong index of the Greater Bay Area recorded its largest increase in a year and a half, with the index reporting 93.65 in November, a month-on-month increase of 2.55%. With the support of national policies, the reopening of multiple-entry visas for Shenzhen residents to Hong Kong in December is believed to promote Hong Kong's retail and dining industries, which will also indirectly help the property market. The Hong Kong property market will rise steadily in line with the Greater Bay Area.

Chen Yongjie indicated that in November 2024, the Central Plains Greater Bay Area Index reported 96.36 points, a month-on-month increase of 1.34%, rising for two consecutive months, with a cumulative increase of 2.29%. The increase is believed to mainly come from the Hong Kong and Macau regions, where the increases in November were 2.55% and 1.59% respectively due to exchange rate factors, driving the expansion of the Greater Bay Area index increase. Both the Greater Bay Area index and the Hong Kong index recorded their largest increases in a year and a half.

Among the 12 indices, 4 indices fell, and 8 indices rose. The decline in the indices ranged from 0.3% to 1.7%, while 8 indices recorded increases in November, ranging from 0.03% to 2.55%. All four major central cities reported increases, marking the first time since May 2023.

He mentioned that in late September, the central government launched a significant package of measures to stabilize the market, with measures being introduced from October to November, successfully activating the Greater Bay Area property market, with both price and volume rising, and multiple cities achieving record high transactions. In November, the number of second-hand online signed transactions in Guangzhou reached 11,418, a 10% increase from October, setting a new high for the year. Shenzhen showed an even more pronounced rebound, with the number of second-hand property transfers reaching 7,125, a 16.5% increase from October, also setting a new high in four years. Recently, the Central Political Bureau held a meeting, emphasizing the need to stabilize the property and stock markets. Chen Yongjie believes that the central government's commitment to stabilizing the property market can enhance public confidence in entering the market, and it is expected that property prices and volumes in the Greater Bay Area will steadily rise