Enhance New Capital Investment Entrant scheme to boost luxury residential market

This is amidst global economic uncertainties and cautious mortgage approvals.

Enhancements in Hong Kong's New Capital Investment Entrant Scheme are expected to attract more high-net-worth individuals to the city, boosting luxury residential property market transactions.

Under the updated measures, applicants now need to demonstrate a minimum net worth of $30m over the six months prior to their application, instead of the earlier requirement spanning two years.

Additionally, investments made through family-owned investment holding vehicles (FIHVs) or a family-owned special purpose entity (FSPE) under a FIHV will now qualify towards meeting the scheme's investment criteria.

“Despite a rate cut totalling 100 basis point for 2024, uncertainties persist with potential further cuts in 2025. Coupled with global economic uncertainties and cautious mortgage approvals, we anticipate residential property prices to remain stable in the first half of 2025 given the supply of first-hand residential units remains high, with over 100,000 units either completed or under construction," Kathy Lee, Head of Research and Retail Consultancy at Colliers Hong Kong said.