Policy Address 2024: K&K Property Expects Surge in Mainland and Overseas Investment in Hong Kong’s Luxury Property Market
The 2024 Policy Address, delivered by Chief Executive John Lee this morning at 11am, introduced several measures aimed at revitalising Hong Kong's property market. Among the key announcements, the Hong Kong Monetary Authority (HKMA) will relax mortgage loan conditions for residential properties. Regardless of the property's value, whether it's for personal use, held by a company, or a first-time purchase, the mortgage loan-to-value ratio will be adjusted to a maximum of 70%, with the debt-to-income ratio capped at 50%.
Additionally, the government will enhance the “New Capital Investment Entrant Scheme." Starting today, investment in residential properties priced at HK$50 million or more will be allowed. Real estate investments can now count towards a maximum of HK$10 million in the total qualifying investment amount.
K&K Property predicted that these new policies would stimulate investment from mainland Chinese and overseas buyers, particularly in Hong Kong’s luxury property market, and estimated that the luxury market could see a 5-10% increase in the coming year. One of the developer’s projects, One Stanley, a waterfront luxury development in Stanley, is expected to benefit from these measures.
The Policy Address revealed that the New Capital Investment Entrant Scheme now allows for residential property investments with a minimum transaction price of HK$50 million. K&K Property also noted that this adjustment will attract more high-end investors, especially in traditional luxury districts, which offer strong asset appreciation potential.