Way to spoil the party — Hong Kong has announced that rich expats can no longer buy their way into being a resident. The Hang Seng Property Index is plummeting on the news, down over 2% currently.Bloomberg:
Hong Kong will stop offering residency to foreigners who buy property and unveiled a rent-to- buy program, intensifying efforts to cool prices that have jumped almost 50 per cent from 2009. Shares of developers tumbled.
The government will temporarily remove real estate from its Capital Investment Entrant Scheme, which was set up to encourage foreigners to invest to gain residency, Chief Executive Donald Tsang said in his annual policy address today.
Fair enough. For Chinese renting apartments on local salaries, it has to be pretty annoying watching as rich foreigners bid up their potential housing. Maybe now average Chinese will actually be able to live on Hong Kong island.