Improved Infrastructure Narrows the Price Gap Between Urban Areas and NT

• Q2 residential transactions are expected to increase by 48% q-o-q to reach 14,900 cases, decline in prices has moderated
• Railway infrastructure and transportation continue to be robustly developed, anticipated to enhance and shorten travelling times, and is expected to bring up property prices in the New Territories, with growth potential to outperform urban prices
• We expect the 2H residential market to be driven by new homes, with full year transactions expecting to fall by 20-25% y-o-y, with a market price increase of no more than 3% by year-end