Mainland Chinese buyers have benefited the most from the removal of Hong Kong’s property curbs, have stepped up luxury purchases, JLL says

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There has been a significant increase in the number of mainland Chinese buyers in the primary market since the removal of curbs and the introduction of Hong Kong’s talent scheme, JLL executive says

Mainland economy needs to see improvements for ‘more significant boost’ to transaction volumes in Hong Kong

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A property agent’s shop in Hong Kong. “We maintain a cautious view on the market outlook,” a JLL executive says. Photo: AFP

Salina LiandYulu Ao

Published: 7:51pm, 25 Mar 2024Updated: 10:12pm, 25 Mar 2024

Mainland Chinese buyers are aggressively snapping up new luxury homes worth HK$30 million (US$3.8 million) or more since the removal of all of Hong Kong’s property curbs last month, JLL said.

These buyers have accounted for 70 per cent of the primary sales of luxury residential properties this month, rebounding from less than 50 per cent before the removal of the curbs, the real estate and investment management services firm said in a monthly report on Monday.

“Mainland Chinese buyers have benefited the most from the removal of the cooling measures,” Norry Lee, senior director of the projects strategy and consultancy department at JLL in Hong Kong, said in the report.

“With the addition of the Top Talent Pass Scheme, there has been a significant increase in the number of mainland Chinese buyers in the primary market, and these buyers are expected to remain active in the market.”

Last month, Financial Secretary Paul Chan Mo-po scrapped decade-old property market curbs in an effort to revive Hong Kong’s struggling real estate sector, giving the market an immediate boost. The government withdrew the Buyer’s Stamp Duty that targeted non-permanent residents and a New Residential Stamp Duty for second-time purchasers. Also, homeowners will no longer be required to pay a Special Stamp Duty if they sell within two years.

The Hong Kong Mortgage Authority followed suit with its own easing measures. Homes valued at less than HK$30 million are now eligible for 70 per cent mortgage financing, compared with the previous cap of 60 per cent for flats valued between HK$15 million and HK$30 million.