In his policy blueprint, the chief executive announced that successful applicants to the cash-for-residency scheme are now permitted to invest in residential property worth at least HK$50 million, with up to HK$10 million counting towards the total capital investment.
Previously, residential property investments were not allowed under the scheme.
Speaking on an RTHK programme, Chan said this change aims to lure high-net-worth individuals while still protecting the local housing market.
“Our policy goal is not to prop up the property market for units worth more than HK$50 million. That’s not my objective. My aim is this: when people come to Hong Kong and want to invest in property, they can. However, we don’t want this to disrupt our local residential market,” he said.
The finance minister also said he hopes the government’s move to ease mortgage lending restrictions would foster a more stable and positive market outlook for the property market.
The Policy Address outlined that the maximum loan-to-value ratio for homes would be adjusted to 70 percent regardless of their value, while the maximum debt servicing ratio would be raised to 50 percent.
“The property market is becoming more stable. Recent transaction volumes have been lower than before, which we see as a positive sign of orderly adjustment,” Chan said.
“We hope that after the property market returns to normal in this way, everyone will have more positive expectations for its future development.”
Chan stressed that property prices and transaction volumes were influenced by many factors, including economic conditions, the stock market, and the external environment.