Hong Kong Reintroduces Real Estate Investment Option for Residency Program

Hong Kong has updated its Capital Investment Entrant Scheme (CIES) by reintroducing real estate as an option for residency by investment. This significant change was announced by Chief Executive John Lee on October 16, 2024, as part of the city's efforts to attract high-net-worth individuals and stimulate the property market.

Investment Updates on Capital Investment Entrant Scheme

Under the revised Capital Investment Entrant Scheme, applicants can now include residential properties valued at HK$50 million (US$6.4 million) or more in their investment portfolios. Up to HK$10 million (US$1.3 million) of the property’s value will count towards meeting the existing HK$30 million (US$3.9 million) investment threshold. With the addition of real estate, the total investment requirement now rises to HK$60 million (US$7.7 million).

Why Is Hong Kong Reintroducing Real Estate for Residency?

This policy change comes at a critical time for Hong Kong, which is navigating an economic slowdown and a cooling housing market. Home prices have dropped to their lowest levels in eight years, largely due to reduced demand from mainland buyers and rising borrowing costs.

Additionally, the city is grappling with a significant backlog of unsold properties.

In response to these challenges, the Hong Kong government is also easing mortgage restrictions, increasing the loan-to-value ratio to 70% for all homes. These measures are designed to make properties more accessible to both local and foreign buyers, though the luxury segment remains the main focus due to the high investment requirements.

Early Success in CIES: 500 Applications in Six Months

The updated CIES has already shown strong interest, with 500 applications received in the first six months since its relaunch.

For more on the early results, including how the scheme is influencing Hong Kong’s economy, check out the latest news on CIES figures.

Adding residential real estate to CIES is a smart move by Hong Kong and will likely lead to even more interest in the program. The potential is substantial, especially considering the initiative's success before its closure. Let’s see how this move unfolds in the coming months.