Centaline Property opened a flagship store in Kai Tak Runway District on Wednesday, targeting a total of 400 branches this year as it projects that property prices have bottomed out.
The new branch covers about 1,700 square feet. Centaline Group chief executive Alex Shih said that Kai Tak's new projects have been faring well, making it a crucial market for the group. He expected to attract more mainland buyers and expressed optimism about the market, as the prices might have reached their lowest point.
Additionally, primary market sales have been strong since March, with monthly transactions consistently exceeding 1,000 units, gradually reducing inventory. Shih added that Centaline currently operates 338 branches, having added 14 this year, and is working towards the goal of 400 branches. The workforce has grown by 200 to about 4,500 employees this year. He also noted that as client habits change, more resources will be allocated to online operations.
Louis Chan Wing-kit, Asia Pacific vice chairman and chief executive of the residential division at Centaline, mentioned that primary transactions have exceeded 2,000 units monthly over the past two months, indicating accelerating activity.
Chan highlighted two positive factors for this month's property market. First, the upcoming Policy Address next Wednesday is expected to include measures such as expanding the stamp duty exemption for properties up to HK$6 million, benefiting more buyers. There are also suggestions to relax property purchase rules for the new investor visa scheme. Chan believes these policies could stimulate market transactions if implemented.
Second, the U.S. Federal Reserve is anticipated to resume interest rate cuts soon. If Hong Kong banks follow suit, mortgage costs would immediately decrease, likely boosting buyer sentiment. These factors combined suggest a sustained upward trend for the property market. Chan estimated primary transactions could reach 2,500 units this month, a 10-month high.
