Firms welcome CIES enhancements, split on property market impact

JLL argued that lowering the residential threshold would not significantly encourage non-local buyers.

Several major real estate and wealth management firms have welcomed the government’s move to enhance the New Capital Investment Entrant Scheme (CIES), though some cautioned the impact on property transactions may be limited.

Colliers said raising the maximum amount of non-residential property investment eligible under the scheme from $10m to $15m is expected to help stimulate transaction volumes and support the recovery of Hong Kong’s commercial real estate market, particularly benefiting strata-office and retail shop sales.

The firm also noted that lowering the residential property threshold from $50m to $30m could spur demand and transactions at the high end of the market.

On the other hand, CBRE’s Head of Research in Hong Kong, Marcos Chan, said the lower residential threshold could boost demand for luxury apartments and houses but is unlikely to significantly increase overall transaction volumes, as properties at that level account for a small proportion of deals.

He also said the higher non-residential cap alone would not drive a sharp rise in demand, as purchase decisions would depend on individual needs and market fundamentals.

Wealth management firm WRISE also backed the enhancements. Executive Chairman Derrick Tan said the changes expand investors’ options, support diversified asset allocation and make the scheme more appealing to high-net-worth individuals.

He said they would help attract more top talent and wealthy investors to establish a long-term presence in Hong Kong.

JLL struck a more cautious note. Its Hong Kong Chairman Joseph Tsang said the broader property market measures in the Policy Address focused mainly on the Northern Metropolis and reducing construction costs, and argued that lowering the residential threshold would not significantly encourage non-local buyers or meaningfully boost the property sector.

PwC South Private Clients and Family Office Tax Leader Agnes Wong said the enhancements should help strengthen Hong Kong’s asset and wealth management sector and should be welcomed by potential investors.

She suggested extending the relaxation to residential properties and including artworks and collectibles in proposed tax concessions to support Hong Kong’s development as a premium arts trading hub.

Meanwhile, StashAway said it was encouraged by the enhanced CIES and other initiatives aimed at attracting global capital and secondary listings, viewing them as bolstering Hong Kong’s competitiveness as a wealth management hub.

The firm noted that assets under management in Hong Kong’s private wealth sector grew 15% YoY with net inflows of $384b. It said its own client base in the city tripled in the first half of 2025, with deposits rising more than 60%.