The recovery of Hong Kong’s property market could face a fresh test if Beijing’s expanding crackdown on offshore wealth extends beyond insurance returns to property income, potentially curbing demand from mainland China and adding pressure to decentralised office markets, according to analysts. The immediate issue is a reported 20 per cent personal income tax on certain returns earned by mainland residents from offshore assets, including gains from Hong Kong insurance policies. While the levy does not currently apply to Hong Kong property , its introduction has raised concerns that offshore rental income and capital gains could eventually come under similar scrutiny. A slowdown in Hong Kong’s insurance business could weigh on office demand, particularly in decentralised districts where insurers have a larger presence, while a broader tax on offshore property income could reduce investment returns for mainland buyers. Insurance companies occupied about 6 per cent of Hong Kong’s grade A office stock as of October 2025, according to real estate and investment firm CBRE.