A new generation of wealthy Hong Kong investors is increasingly challenging the traditional preference for property, with some family fortunes being redirected towards deposits, hedge funds and other liquid investments, according to a report by the South Cina Morning Post.
The shift reflects changing expectations around Hong Kong real estate, particularly among families that have accumulated substantial residential and commercial portfolios over generations.
Property historically offered families multiple benefits, including rental income, capital appreciation and collateral that could be used to support further investment. But weaker expectations for future price appreciation are prompting some younger family members to reconsider the concentration of wealth in bricks and mortar and consider allocating capital to a range of liquid and alternative investments. These include long-short hedge funds and multi-asset strategies, alongside investments linked to artificial intelligence, biotechnology and robotics.
The relative attractiveness of liquid assets has also increased as borrowing costs, rental yields and interest rates have changed the economics of property ownership.
Gabriel Chan, managing director and head of investment services at BNP Paribas Wealth Management in Hong Kong, said wealthy clients with already substantial property exposure were increasingly looking at other asset classes to diversify their portfolios.
The changing preferences of established Hong Kong families contrast with continued demand for prime property from mainland Chinese buyers. Centaline Property data showed mainland purchasers accounted for about 80% of transactions involving homes worth at least HKD100m in The Peak and Southern district during 2025.
