Midland Chief Suggests Changes to Hong Kong’s Cash-for-Residency Scheme

Freddie Wong Kin-yip says property-friendly changes will help support the region’s struggling real estate market

Hong Kong should make changes to its cash-for-residency scheme to support the city’s sluggish property market, said Freddie Wong Kin-yip, Chairman of real estate agency Midland Holdings. Wong said applicants to the new Capital Investment Entrant Scheme (CIES) should be allowed to include more of their property purchases in their investment requirement under the residency programme. At present, the CIES scheme requires applicants to invest at least HK$30 million (US$3.9 million) in funds, stocks, bonds or other vehicles in exchange for residency for their family.

Property was initially excluded from a list of approved assets. But in October, the government said it would allow an investment in a property bought for no less than HK$50 million to be counted towards an application, subject to a cap of HK$10 million. Wong also suggested that stamp duties should only be paid after property buyers move into their new residences, which he said would ease funding pressures and allow investors to re-sell properties if they face financial difficulties.

“Hongkongers are heading north to mainland China for consumption, while mainlanders are coming to Hong Kong to study and buy property. We businesspeople must react to this trend accordingly.”

Freddie Wong Kin-yip, Chairman, Midland Holdings

“Under the current situation, when there are so many housing units unable to be sold, such measures will help to destock the market,” Wong said. “Incoming investment migrants can also help to grow the economy.” He said the proposed changes would not trigger price speculation because the market remains sluggish. His remarks came ahead of Financial Secretary Paul Chan Mo-po’s annual budget speech, which is expected to be delivered later this month. “We see the government is proactively taking measures [to boost the economy] and I believe we can expect some good news for the property market from the coming government budget,” Wong said.

Midland, Wong said, would enhance its teams targeting the increasing numbers of non-local students in Hong Kong as well as new migrants seeking wealth-management services. “Hongkongers are heading north to mainland China for consumption, while mainlanders are coming to Hong Kong to study and buy property,” he said. “We businesspeople must react to this trend accordingly.”

Property prices in Hong Kong have seen continuous drops over the recent years, and buyers remain cautious under the high-interest rate environment. Lived-in home prices fell 7.3 per cent in 2024, following declines of 15 per cent in 2023 and 7 per cent in 2022. In addition, commercial and industrial property values are also in prolonged slumps, as the Hong Kong economy and retail sales continue to underperform.

Wong said the worst of the Hong Kong property slump had passed. Looking ahead, he said the number of property transactions would grow in 2025, while the outlook for prices would improve.

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