Residency scheme drives demand for luxury housing, boosts capital flow

Hong Kong’s expanded investment scheme sparks demand for premium properties.

Hong Kong’s recently expanded New Capital Investment Entrant Scheme, allowing foreign investors to seek residency through investments in residential properties valued at over $50 million, is attracting high-net-worth individuals and bolstering the region’s status as a global financial hub.  

“The capital investment entrance scheme now allows you to acquire a $50 million worth of residential property in order to get a residency in Hong Kong,” said Antonio Wu, Head of Capital Markets, Greater China, at Knight Frank. “Since the government announced the policy in March this year, we have seen a total number of 600 applications have been processed, reflecting that Hong Kong remains a stable and reliable and attractive place for many investors.”  

Wu emphasised the potential of the policy to increase demand for high-end residential properties. “This new scheme will attract a lot of high-level individuals, including those businessmen from the mainland who want to migrate to Hong Kong, and they will be having the opportunity of investing into the Hong Kong real estate market,” he said.

Thomas Chak, Head of Capital Markets & Investment Services at Colliers Hong Kong, expects the scheme to create opportunities for professionals across sectors and to drive demand for office and retail spaces. “It should attract more talents into Hong Kong for the long run and make the city more appealing for global players to set up their office here and expand,” he said.  

Including high-end residential properties in the scheme is a strategic move to attract global capital, but experts argue that diversifying investment options could amplify its impact. Wu suggested channelling investments into technology and innovation funds to support startups and AI-driven enterprises.

“Adding additional products, like development sites, would help boost the land sales market and increase government revenue from land sales,” Chak said. Raising the investment cap for real estate from HK$10 million to HK$30 million could further accelerate capital inflow.  

By integrating residential properties and potentially broadening the scheme’s scope, Hong Kong aims to attract high-net-worth individuals, elevate its financial landscape, and maintain its reputation as a global gateway city. As Wu concluded, “This is a very positive move for those investors or new immigrants who are interested in moving their assets into Hong Kong.”