Exciting news for investors in Hong Kong as a new regulation will streamline the renewal process for 2,400 expiring leases, benefiting banks and boosting confidence in long-term investments. The Greater Bay Area market stands to gain from this development, which is part of Beijing’s plan to create a hi-tech economic powerhouse.
Under the new bill, leases will automatically be extended for 50 years unless owners opt out through a statutory mechanism, simplifying the process and eliminating uncertainty. Owners will not have to pay a land premium but will owe an annual rent of 3% of the land’s rateable value.
Foreign investors are already showing interest in Hong Kong’s extended autonomy, with positive feedback received for the new measure. Secretary for Development, Bernadette Linn Hon-ho, expects high confidence from property owners and investors moving forward.
For more details on this exciting development, check out the image below: