High-calibre professionals arriving under Hong Kong’s talent admission schemes are significantly impacting the private residential rental market, according to JLL’s latest report. Whilst these professionals are driving a net annual leasing demand of 12,000 units, cross-border capital restrictions are hindering their ability to purchase homes, leaving the long-term housing market recovery dependent on policy changes.
Government data reveals a sharp increase in approved applications for talent schemes, rising from 38,559 in 2022 to 138,215 in 2024. The Top Talent Pass Scheme (TTPS), introduced in 2023, accounted for 30% of these approvals in 2024. With an arrival rate of 64% among visa holders, each TTPS holder typically relocates with 0.9 dependants, indicating a significant impact on population growth and housing demand.
Norry Lee, Senior Director at JLL, noted that 70% of TTPS holders rent private units, projecting an annual demand for 12,000 units from 2023 to 2027. This demand is particularly strong for smaller Class A and B units, which saw an average annual net take-up of 13,800 units from 2022 to 2024.
Despite the rental market’s growth, only 13% of TTPS holders have purchased properties, largely due to cross-border capital transfer restrictions. Cathie Chung, Senior Director of Research at JLL, suggests easing these restrictions to unlock homebuying potential and alleviate market pressures.
JLL recommends policy changes, including a fast-track quota system for TTPS holders, tiered investment thresholds, and a pilot programme in the Greater Bay Area to facilitate capital transfers. These measures aim to support homebuying among mainland professionals and stabilise the property market.
