Hong Kong has seen a flush of white-collar professional expatriates return from around the globe, under low tax rates, a strong market of initial public offerings, and auspicious employment prospects, Bloomberg reported.
Under the amended law to exempt certain fund managers from profits tax on carried interest, as well as the rebounding local IPO market, the city has attracted expats to relocate here.
Hong Kong granted 31,278 work visas to foreign nationals last year, more than double the number five years ago, mainly from Japan, South Korea, and the UK. Among them, the number of foreign visas for the financial services industry jumped 17 percent, a new high since 2022.
In addition, several global financial institutions have been rebuilding their Hong Kong-based senior management teams, including Bank of America and HSBC, according to Bloomberg.
Of the more than 410,000 approved talent admission schemes over the past three years, nearly 75 percent are from the mainland.
The employment threshold in Hong Kong has become higher for non-Chinese speaking foreigners, often requiring highly specialized skills or internal transfers within companies.
The trend has revitalized Grade A office buildings in Central as foot traffic in Grade A office buildings in the Central district has clearly rebounded, with a 90 percent occupancy rate at The Henderson, and a doubled occupancy of 60 percent at Cheung Kong Center II.
The influx has also pushed up rents in traditional luxury residential areas favored by expats, including Mid-Levels East and The Peak, as rents have risen by 14 percent and 13 percent respectively, higher than the average increase of about 10 percent across Hong Kong.
Competition for places in top international schools has become fierce as expats relocate with their families, with waiting lists in place for as long as a year.
