Qiu Dachang estimates that Hong Kong property prices will rise by 15% in the next two years and will continue to participate in land investment in Beidu

Qiu Dachang, a member of the Standing Committee of the National Committee of the Chinese People's Political Consultative Conference and Chairman of FE CONSORT INTL (00035.HK), stated in a radio interview in Beijing that the escalating tensions in the Middle East may affect local companies' investments in China, but currently, such investments are negligible and he believes the impact on Hong Kong will be minimal. Instead, he is concerned that the war may drive up oil prices and inflation, which could ultimately lead to rising interest rates and affect the capital markets.

Qiu Dachang pointed out that the interest rate environment is unstable, and developers have accumulated a significant amount of inventory, indicating that the Hong Kong real estate market still needs to attract more capital. He is concerned about whether it is the right time for the government to raise the stamp duty on luxury home transactions exceeding HKD 100 million. He noted that rigid demand continues, construction costs have not seen a decline, and local properties are also attracting many buyers from mainland China. He estimates that overall property prices in Hong Kong may rise by another 15% in the next two years. He hopes to first reduce the company's debt levels before resuming land acquisitions, but he expressed a pessimistic outlook on the commercial property market, believing that the global office model has changed.

Regarding the Northern Metropolis area, Qiu Dachang mentioned that the group is actively discussing land premium with the government for a residential site located in Hung Shui Kiu, involving about 1,000 units, and will continue to participate in land acquisitions in the Northern Metropolis. He pointed out that the recent government-launched Northern Metropolis projects come with many conditions, such as purchasing residential land that is tied to industrial or high-tech land, making the development conditions more complex. This is a new area that local developers need time to adapt to, but he believes that the Northern Metropolis definitely has the capability to catch up with the rapidly developing Shenzhen.

He also believes that Hong Kong will benefit from the "14th Five-Year Plan," especially in finance, as the trend of further internationalization of the Renminbi presents significant opportunities for Hong Kong. He suggested attracting more mainland real estate investment trusts to list in Hong Kong, allowing mainland and Hong Kong investors to participate, and enabling the release of value from mainland property projects with long-term investment returns. (ss/)