2025 Policy Address: Relaxed Rules to Boost HK Luxury Home Demand

In the 2025 Policy Address delivered on September 17, Chief Executive John Lee introduced updates to the Capital Investment Entrant Scheme (CIES), lowering the investment threshold for residential properties from HK$50 million to HK$30 million. Additionally, the maximum investment eligible for calculating the total threshold in non-residential properties has been increased from HK$10 million to HK$15 million.

According to Eric Tso, chief vice president at mReferral Mortgage Brokerage, the previous HK$50 million threshold for residential property investments was relatively high. With the new adjustments and lower entry requirements, the policy is expected to attract more talent and foreign capital to Hong Kong, creating new business opportunities and enhancing investment prospects.

Since October 2022, when the government raised the mortgage cap across all residential properties—regardless of property value or end-use—the proportion of luxury homebuyers utilising the maximum 70% mortgage has increased significantly. According to mReferral’s research, over 35% of non-local buyers who purchased residential properties priced at HK$30 million or more this year applied for the maximum 70% mortgage through the brokerage.

Tso believes that the eased requirements under the revised CIES, combined with previous measures such as relaxed mortgage terms and the removal of property-related stamp duty ("cooling measures"), will further stimulate both luxury and non-residential property transactions. This, in turn, is expected to have a positive impact on the overall property and mortgage markets. He noted that the inclusion of non-residential properties under the updated investment scheme will also boost demand in this segment, particularly among investors seeking higher returns and greater flexibility.

The government has been introducing various property-related cooling measures since 2010 to curb market overheating. However, in response to a slowdown in the real estate sector, these measures were gradually relaxed starting in late 2023. In October 2023, the 2023 Policy Address reduced the holding period for the Special Stamp Duty (SSD) from three years to two years, exempting sellers from paying 10% of the property's value if sold after two years. The Buyer’s Stamp Duty (BSD) and New Residential Stamp Duty (NRSD) were both halved from 15% to 7.5%. Talent programs were optimised to allow foreign buyers to defer stamp duty payments until permanent residency is obtained.

Despite these changes, property prices continued to decline. For example, the Centa-City Leading Index (CCL), which reflects real estate market trends, dropped from 153.59 points in November 2023 to 144.19 points by March 2024, a 6% decline within four months. Although the government fully removed cooling measures in February 2024, including stamp duties for all residential property transactions, the market has not rebounded as expected. From November 2023 to August 2025, property prices have fallen by over 10%, according to the CCL.

The government has since introduced additional stimulus policies, such as significantly reducing stamp duties on properties priced below HK$4 million. However, the market remains under pressure, highlighting the need for further measures to restore confidence.

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