Hong Kong is lowering its threshold for home purchases by people applying for an investor visa to bolster the city’s property market.
Applicants for the New Capital Investment Entrant Scheme can purchase a residential property valued at HK$30 million ($4.9 million) or above, Chief Executive John Lee said in his annual speech on Sept 17. The previous threshold was HK$50 million .
While the move would likely spur demand for high-end properties in the city, its impact could be limited. Oversupply and a weak economy continue to weigh on the residential market with home prices hovering near their lowest since 2016. Previous policies including cutting property taxes and loosening mortgage rules have struggled to lift the market.
The investment entrant program requires applicants to invest at least HK$30 million in assets including equities, debt securities and property. It received 1,257 applications, of which 512 were approved as of April, according to the government. The applications were expected to bring an investment amount of more than HK$37 billion into Hong Kong, it said.
The cap of the amount of residential real estate investment to be counted toward the total capital investment remains at HK$10 million, Lee added.
