Citi published a report stating that the new “Policy Address” proposes to adjust the “New Capital Investor Entry Plan” to allow investment in residential properties of HK$50 million or more, with a maximum total investment limit of HK$10 million; the upper limit of the mortgage ratio for all residential properties will be raised to 70%, and the upper limit of the contribution to income ratio will also be uniformly adjusted to 50%; the demand for private housing is expected to be 132,000 units over the next five years; the supply of public housing will increase to 18.9,000 units over the next five years; the supply of public housing will increase to 189,000 units over the next five years. 4 to 172,000 units increased by 10% in the 2029 fiscal year; the goal for the next ten years is to gradually adjust the ratio of public housing and subsidized sales units from the current 7 to 4 to 6 to 4; the Housing Authority is carrying out 11 reconstruction plans. The bank believes that the above policy to support the property market is in line with market expectations and that easing the upper limit of residential property mortgage ratio is beneficial to investment demand, but it may take time to become apparent. The bank kept its forecast for a 10% drop in Hong Kong property prices this year, compared to a 7.5% drop in the first nine months, and expected property prices to bottom out in the middle of next year. Furthermore, the bank expects the policy report to bring a positive situation to developers. Coupled with interest rate cuts, there was a rebound in trading volume and new market launches in October. The bank maintains a strategy based on dividends and yield as stock selection criteria, and expects Sun Hung Kai Properties and Henderson Kai Properties to outperform in the short term.

Citi published a report stating that the new “Policy Address” proposes to adjust the “New Capital Investor Entry Plan” to allow investment in residential properties of HK$50 million or more, with a maximum total investment limit of HK$10 million; the upper limit of the mortgage ratio for all residential properties will be raised to 70%, and the upper limit of the contribution to income ratio will also be uniformly adjusted to 50%; the demand for private housing is expected to be 132,000 units over the next five years; the supply of public housing will increase to 18.9,000 units over the next five years; the supply of public housing will increase to 189,000 units over the next five years. 4 to 172,000 units increased by 10% in the 2029 fiscal year; the goal for the next ten years is to gradually adjust the ratio of public housing and subsidized sales units from the current 7 to 4 to 6 to 4; the Housing Authority is carrying out 11 reconstruction plans. The bank believes that the above policy to support the property market is in line with market expectations and that easing the upper limit of residential property mortgage ratio is beneficial to investment demand, but it may take time to become apparent. The bank kept its forecast for a 10% drop in Hong Kong property prices this year, compared to a 7.5% drop in the first nine months, and expected property prices to bottom out in the middle of next year. Furthermore, the bank expects the policy report to bring a positive situation to developers. Coupled with interest rate cuts, there was a rebound in trading volume and new market launches in October. The bank maintains a strategy based on dividends and yield as stock selection criteria, and expects Sun Hung Kai Properties and Henderson Kai Properties to outperform in the short term.