Hong Kong Eases Investment Visa Rules, Betting on Luxury Property

Photo: Bloomberg

Hong Kong authorities are adjusting the terms of the investment visa programme, writes Bloomberg. The decision was announced by Chief Executive John Lee during his annual policy address. The move is expected to support demand for luxury residential property in the city, although its impact may be limited amid a weak economic backdrop.

The New Capital Investment Entrant Scheme allows investments across several asset classes, including equities, debt instruments and real estate. According to the Hong Kong government, 1,257 applications had been submitted by April 2025, with 512 approved. The total volume of investments under these applications was expected to exceed HK$37 billion ($4.7–4.8 billion).

Previously, the minimum investment threshold stood at HK$50 million ($6.4 million). Under the updated rules, applicants are now allowed to count the purchase of residential property valued at HK$30 million or more (around $3.8–3.9 million). At the same time, the portion of investment in residential property that can be counted under the scheme remains capped at HK$10 million (about $1.3 million), Chief Executive John Lee emphasised.

The easing of conditions is likely to support demand for high-end housing, but the effect is expected to be limited. Hong Kong’s housing market continues to face pressure from oversupply and a sluggish economy, with prices hovering near their lowest levels since 2016. Earlier measures, including cuts to transaction taxes and looser mortgage requirements, have failed to deliver a meaningful market rebound.



The commercial property market is also in an acute phase of stress, prompting industry representatives to urge the authorities to establish a dedicated stabilisation fund of HK$20 billion (around $2.6 billion). The fund is expected to focus on investments in distressed assets. Government or quasi-government entities, including the Hong Kong Monetary Authority and the Hong Kong Mortgage Corporation, are being considered as anchor investors.

Under the proposed model, around 25% of the fund’s capital could be provided by public-sector bodies, another 25% by institutional investors, with the remaining 50% offered to retail investors. Over time, the fund could be taken public and listed on the Hong Kong Stock Exchange. The initiative is being compared to the Tracker Fund of Hong Kong, created after the 1998 Asian financial crisis, when the government purchased a portfolio of shares to stabilise the market.

Legislative Council member Louis Loong has proposed converting part of the commercial land supply to residential or mixed-use development in order to ease oversupply pressures. Charles Lam, Permanent Honorary President of the Hong Kong and International Division of the China Real Estate Chamber of Commerce, said the downturn in the commercial segment is already leading to a rise in non-performing loans, forced asset sales and liquidity shortages among developers and investors. “It’s a vicious circle. Banks are forced to sell assets at discounted prices,” he noted.

At the same time, lenders are becoming increasingly reluctant to issue new property-backed loans, resulting in liquidity constraints for investors and, consequently, a decline in the number of new projects in the coming years. Lam warned that further deterioration could trigger a domino effect and lead to a simultaneous crisis in both the financial sector and the real estate market.



The pressure is already producing tangible consequences for major players. In early September, Bloomberg News reported that two properties managed by Schroders’ investment arm had been seized by bank creditors within a few months, marking one of the most visible signals of worsening conditions.

Analysts at International Investment note that the easing of visa requirements and discussions around tools to deal with distressed assets reflect attempts by the authorities to reduce tension amid a prolonged downturn. For market participants, this means more flexible entry conditions into the premium residential segment and an indirect signal of the state’s willingness to help contain financial risks accumulated in commercial real estate. At the same time, these measures are local in nature and do not create the conditions for a rapid recovery. In the medium term, investment attractiveness will depend on the overall economic environment, access to credit and the market’s ability to gradually absorb excess supply.