Ditch investment visa home curbs, urges Midland boss

Staff reporter

Hong Kong should further ease its rules for wealthy investors who want to live in the city under its investment-migrant scheme, says Midland Holdings (1200) chairman Freddie Wong Kin-yip.

He said the current limit of counting not more than HK$10 million in property investment toward the HK$30 million New Capital Investment Entrant Scheme should be scrapped.

Investors should be able to use the full value of property purchases above HK$30 million for the CIES, he said.

Also, buyers should be allowed to pay property stamp duties after they move into their new homes.

Wong believes these measures would help stimulate flagging 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 revamped CIES launched last year, well-heeled investors and their families who invest HK$30 million in permissible assets in the city are granted residency on a fast-track basis.

In October the CIES was expanded to include residential real estate purchases valued at more than HK$50 million as part of the HK$30 million investment, with up to HK$10 million of the property's value allowed to be counted towards the requirement.

And last month, the government further relaxed the scheme 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 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 home 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 survey.

The Midland survey of over 200 residents via social media 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.