Hong Kong's John Lee: Balancing Economy, Property Market, and Security

Hong Kong's recent easing of residential property cooling measures, including a cut in buyers' stamp duty, is not expected to reverse the downward trend in property prices due to high interest rates. The average turnover ratio in the second-hand property market is at historic lows, and prices have corrected down by nearly 20% since their peak in August 2021. To fully recover, interest rates will need to come down next year. Homeowners are struggling to sell their properties at a discount, and prospective buyers remain cautious due to high prices. The market sentiment is weak, and there are risks of a prolonged high-rate environment and geopolitical uncertainties. Developers may be more willing to cut prices in the primary market to boost sales.