According to the Zhitong Finance APP, the Federal Reserve has once again cut interest rates by 0.25% as expected. Huang Yongxin, Managing Director of Lijia Mortgage Agency, stated that the pace of interest rate cuts in the U.S. will slow down next year. However, given the current economic and market environment, a 0.25% cut is within the expected range. It is believed that Hong Kong banks will likely follow suit and reduce rates by 0.25%, offsetting the earlier rate hike cycle. On the same day as the Federal Reserve's rate cut, HSBC and BOC HONG KONG (02388) announced a reduction in the Hong Kong dollar prime rate (P) by 0.125%, lowering it from an annual rate of 5.375% to 5.25%. This rate cut can be considered very proactive, and it is believed that more banks will join the rate cut in the coming days, which is expected to stimulate the Hong Kong property market again.
Huang Yongxin noted that HSBC and BOC HONG KONG have cut rates three times in a row, which was unexpected. Their proactive rate cuts will undoubtedly help alleviate the financial burden of mortgage payments for homeowners. As the two leading banks in the Hong Kong mortgage market, their rate cuts are expected to encourage other small and medium-sized banks to follow suit, allowing more Hong Kong citizens to benefit from this favorable policy. With this wave of proactive rate cuts, it is believed that the transaction volume in the property market will significantly increase, and the economy and mortgage market are gradually recovering.
Huang Yongxin stated that the decline in interest rates has led banks to adopt a more positive attitude towards mortgage business, coupled with the government's relaxation of several mortgage measures. These factors together inject positive energy into the mortgage market. Recent observations show that banks are becoming more lenient in their attitudes towards mortgage business. Hong Kong banks have chosen to synchronize their rate cuts with the U.S., which is a very wise strategy.
In the current context of declining interest rates, although rental prices have not yet shown a downward trend, the phenomenon of &#34;mortgage costs being lower than rent&#34; is likely to emerge. This presents an excellent opportunity for buyers looking to enter the property market, as they can start searching for their desired properties. Looking ahead, banks may launch more mortgage incentive programs, including increased cash rebates to attract customers, which will further promote market activity and provide substantial assistance to the general public.
Huang Yongxin pointed out that every year at the beginning of the year is the time for banks to boost their mortgage performance, and they will offer more incentives to attract customers. Since the fourth quarter, Hong Kong banks have gradually increased cash rebates, whether for first-hand, second-hand properties, or refinancing, there are considerable cash rebates available. Therefore, after the start of the rate cut cycle in Hong Kong, it is recommended that those interested in purchasing property or refinancing take advantage of the current interest rate benefits, look for suitable properties, seize market opportunities, and benefit from future asset appreciation

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Li Jia Ge stated that more Hong Kong banks may follow the Federal Reserve's rate cut in the coming days, expecting to reduce rates by 0.25% to stimulate the Hong Kong property market. HSBC and BOC HONG KONG have lowered the Hong Kong dollar prime rate to ease the financial burden on homeowners. With the trend of rate cuts, transaction volumes in the property market are expected to rise, and banks are becoming more positive towards mortgage business, potentially launching more promotional plans to attract customers

- The Federal Reserve has reduced interest rates by 0.25%, aligning with market expectations, and Hong Kong banks are likely to follow suit.  
- HSBC and Bank of China (Hong Kong) have lowered their Hong Kong dollar prime rates, which may stimulate the local property market and ease mortgage burdens for homeowners.  
- As banks adopt a more favorable stance towards mortgage lending, potential buyers are encouraged to take advantage of current low rates and explore property opportunities.

Lijia Ge: In the coming days, more banks may join the rate cut ranks, which is expected to stimulate the Hong Kong property market again