Ease investment migration, property tax rules, urges Midland

Hong Kong should further ease its rules for wealthy investors who want to live in the city and allow property stamp duties to be paid after buyers move into homes, says Midland Holdings (1200) chairman Freddie Wong Kin-yip.

He believes this would help stimulate home sales and boost the economy without reigniting market speculation, pointing out that the removal of stamp duties and lower interest rates have not caused a surge in speculative activity.

Under the New Capital Investment Entrant Scheme launched last year, well-heeled investors and their families who invest HK$30 million in the city are granted residency on a fast frack basis.

The government has now relaxed the investment-migrant scheme as it is known with a host of eased rules set to kick in this March.

Wong said the 2025-26 budget will be crucial for the market's future because of the huge fiscal deficit, and called on the government to adopt a proactive approach and prepare for challenges with effective measures.

He said the property market will see a slight rebound after the Lunar New Year but it might come a little later than expected, adding that the worst is over for the economy and real estate sector.

Residential property prices have plunged by up to 30 percent since 2022 while commercial property prices have fallen even more sharply, by at least 60 percent, he said.

However, Wong said that any rebound in prices hinges on several factors such as the state of the economy, buyer confidence, the pace of sales for unsold new homes and any favorable announcements in the budget.

Separately, the number of residents wanting to buy a home has fallen slightly this year, according to a Midland survey of over 200 residents via social media this week.

It showed 45 percent plan to enter the market within six months, down 1 percentage point from last year.
Around 61.5 percent of them believe property prices will stay stable or rise, down 14.3 percentage points from last year, reflecting a more cautious view on short-term trends.

In contrast, 81.5 percent expect rents to remain steady or increase in the next six months, up 22.9 percentage points year-on-year.

STAFF REPORTER