Junli Henderson Investment Portfolio Manager Tim Gibson and Xin Yan Low said that the residential property market in Hong Kong has entered a noticeable recovery stage by 2025, benefiting from improvements in the macro environment, more stable household balance sheets, and a rebound in local and foreign demand. As second-hand property prices and rental levels rise, residential developers are regaining pricing power, laying the foundation for continued profit and asset value growth. The wealth effect is undoubtedly an important catalyst driving investors' renewed interest in the property market. Strong gains in the Hong Kong stock market are flowing into the real estate market. Talent programs are bringing in new residents, pushing rents to historic highs. Interest rate cuts have reduced mortgage rates, making buying property more attractive than renting. The residential market has rebounded, with second-hand property prices rising by about 10% from the low point in the second quarter of 2025. Over the past 12 months, Hong Kong has been one of the best-performing real estate markets globally, with renewed investor interest leading to significant revaluation of valuations. As property prices and rents rise, developers are more likely to regain bargaining power, supporting the improvement of profitability. The growth in earnings and asset value will further drive stock performance. As long as the main factors supporting the fundamentals remain in place, a positive outlook is maintained for the real estate sector.