CBRE: The measures in the budget will help businesses navigate the economic transition period and are expected to enhance Hong Kong's competitiveness

Chen Jinping, head of the Hong Kong research department at CBRE, stated that the new budget emphasizes the necessity of accelerating economic transformation in response to the structural changes affecting Hong Kong's economy. Various investments and measures aimed at assisting businesses through the transition period are expected to enhance Hong Kong's economic competitiveness and attract more international and mainland enterprises and talent to the city.

Chen Jinping mentioned that the government is also committed to better aligning with the national "14th Five-Year Plan" and will initiate a local version of the five-year plan to guide Hong Kong's economic development towards its goals. This initiative will ensure that public investment and resources are strategically allocated, laying the foundation for long-term success.

Chen Jinping indicated that the improvement in Hong Kong's fiscal situation allows the government to introduce multiple measures to enhance the quality of life for citizens, stimulate local consumption, and support inbound tourism. The GDP growth forecast for 2026 is between 2.5% and 3.5%, continuing the 3.5% growth of 2025. Driven by anticipated interest rate cuts and a rebound in property prices, demand for property investment is also expected to increase. The government anticipates an average GDP growth of about 3% per year from 2027 to 2030, which is higher than the average levels of 2.9% over the past 10 years and 2.4% over the past 20 years.

Chen Jinping noted that the budget announced today does not directly stimulate the commercial property market, but measures to enhance Hong Kong's international financial competitiveness and promote technological innovation are expected to drive related demand for commercial real estate. The government's decision to suspend the sale of general commercial land for the second consecutive year is seen as appropriate, especially considering that some property categories still record high vacancy rates