(Policy Address 2022) HK to relax property rules for non-PR and offer 2-year visas for top talent

Hong Kong will relax rules on property for non-permanent residents and grant two-year visas for high earners and top university graduates as part of a vision for how to revive the city’s status as an international financial hub. 

Chief Executive John Lee announced the measures Wednesday during his maiden policy address. The property rule will refund a 15 percent stamp duty that non-permanent resident property buyers need to pay after they have stayed in the city for seven years. 

The visa plan includes a program for people who bring in at least HK$2.5 million (US$318,480) annually. Recent graduates of the world’s top 100 universities will also be eligible for work visas, he added. 

The visas allow talent to explore opportunities in Hong Kong and are not subject to any quota. 

The policies come as Hong Kong attempts to attract and retain skilled talent to counter a brain drain fueled by years of pandemic isolation. 

While the city’s most stringent Covid curbs have been rolled back, some restrictions remain and the slowness to reopen has contributed to deep economic turmoil. Gross domestic product is projected to contract this year for the third time since 2019, a downturn also fueled by rising interest rates, global inflation and Russia’s war in Ukraine. 

Hong Kong’s pandemic restrictions have led companies and workers to consider alternative locations, including Singapore. The Southeast Asian hub in August announced its own five-year work visa program for foreigners earning at least S$30,000 (US$21,134) per month, citing a hypercompetitive battle for global talent. 

(Bloomberg)