Jones Lang Lasalle: Lowering the investment threshold for capital investors in property has no significant impact on the real estate market

Regarding the new "Policy Address" optimizing the "New Capital Investor Entry Scheme" for property investment, Joseph Tsai, Chairman of Jones Lang Lasalle Hong Kong, pointed out that the policies related to the property market mainly target the Northern Metropolis and aim to reduce construction costs. There have been no sweeping policies introduced, and the government's lowering of the residential transaction price threshold will not encourage non-local buyers to enter the market, which will have little impact on the property market.

Regarding student accommodation, Joseph Tsai believes that the government's policy direction allowing the redevelopment of commercial buildings into student accommodation to retain excess plot ratio is correct. However, given the current poor economic and property market conditions, along with banks tightening commercial property lending, developers or investors who demolish buildings for redevelopment will immediately face two major issues: lack of rental income and difficulty in obtaining loans. This policy may not attract developers or investors to redevelop for student accommodation at this stage, and converting commercial properties into student accommodation may be more cost-effective