The Hong Kong real estate market has experienced a transformative moment, with the comprehensive repeal of the 14-year-old restrictive property market policy known as "spicy measures," marking an important turning point. Along with this change, the Cheung Kong Holdings Group (hereafter referred to as "CK Group") has seized this critical opportunity, launching discounted properties to attract buyers.

In late May, CK Group opened the sale of its residential project "LYOS" located in Hung Shui Kiu, Northwest New Territories of Hong Kong, drawing notable attention. The sale included 14 units of multi-level building apartments and 14 garden duplex units, with significantly lower prices than the initial public offering. The multi-level apartment units were discounted by up to 25%, while the garden duplex units saw discounts of up to 32%.

As early as April, CK Group's South Island Blue Coast Phase 3B project in Wong Chuk Hang Station was launched at a price lower than cost. The 422 residential units were sold at an average price of HK$21,900 per square foot, compared to the project's cost of approximately HK$28,000 per square foot and the prices of other new developments and resale properties in the area, making it quite attractive. Similarly, another project's nine units at Nine Dragons Hill were also significantly reduced by 23% to 32% in sales price.

Regarding this wave of discounted sales, at the shareholders' meeting, Victor Li, the Chairman and Managing Director of CK Group, stated clearly that the pricing of properties should be based on various conditions such as location, transport convenience, surrounding environment, and current market conditions.

Clearly, since the government announced the revocation of related property market control policies at the end of February, the atmosphere in the Hong Kong property market has fundamentally shifted, with a marked increase in the transaction volume of new properties. Data from Midland Realty Research Centre reveals that in March, the volume of transactions for new properties in Hong K, with over 4,100 transactions amounting to HK$42 billion, breaking several records. Even in April, although the volume of transactions decreased, it was still a multiple increase from January and February before the withdrawal of the "spicy measures."

Alva To, Vice Chairman and President of the Residential Division of Centaline Property Agency Asia Pacific, says that after the full withdrawal of the measures, the speed of property sales exceeded expectations, and even some properties that had not been sold for many years were cleared. CK Group took advantage of the market's rebound to clear its unsold properties, with a pricing strategy aimed at attracting interested buyers.

Nonetheless, the latest data indicates that the heat of the Hong Kong real estate market has receded slightly. According to a report by Centaline Property, the growing sentiment of wait-and-see is having some impact on the market. However, the actions of the CK Group indicate that every market change is an opportunity—the key lies in how to adjust strategies in a timely manner to achieve development amidst change.

Although the market has lacked fresh positive news recently, and the sale of large new properties has impacted the secondary market transactions, the continuous market stimulus measures introduced by the mainland, coupled with the continuous record highs of the Hong Kong stock market, with daily turnover reaching a new high not seen in nearly a year and a half, have all had a positive impact on the real estate market, making one optimistic about its outlook.

In addition, the comprehensive "withdrawal of spicy measures" (meaning the relaxation or cancellation of regulatory measures) also contributes to the stabilization of prices. According to the data from Midland Realty Hong Kong, the "Midland Property Price Index" for April rose by 1.2% month-on-month, ending an 11-month decline and achieving a rebound for the first time. With the increase in transaction activity, the "Midland Property Price Index" reached 136.05 points on May 6, reducing this year's property price decline to 1.1%.

Midland Realty Hong Kong believes that the future trend of Hong Kong's property prices will depend on the condition of the economic recovery and the timing and trend of interest rate adjustments. Li Zejue also expressed his view that there is rigid demand in the Hong Kong property market and believes that after the "withdrawal of spicy measures," the property market will continue to be affected by housing policies and interest rate trends.