Next-gen wealthy Hongkongers shift from property to deposits and hedge funds
SCMP · 1 SOURCESabout 3 hours ago2 MIN
Summary
Next-gen wealthy Hong Kong families are abandoning property investments in favour of financial assets like deposits and hedge funds, seeking higher returns and simpler portfolio management. Maria, who recently took over her family's investment decisions after her father built a fortune through a screen-printing business starting in the 1960s, plans to liquidate all real estate holdings, reflecting a broader generational shift in wealth management strategies among Hong Kong's affluent families.
Key Points
- Maria's family moved from their house in Southern district to The Repulse Bay, renting separate flats of about 2,500 square feet each for three generations
- The 86-year-old father was reluctant to rent while the mother, who spent her life buying homes, initially insisted on a house rather than a flat
- Maria wants to liquidate all property holdings, including a commercial unit at The Centre in Central bought for over HK$100 million (US$13 million) in cash, now worth about HK$60 million
- The family still owns multiple residential properties valued between HK$20 million to HK$30 million each, with liquid and illiquid assets roughly split
- Clifford Ng from Zhong Lun Law Firm says clients often state that financial assets are simply much easier to manage than property
Why It Matters
This shift signals a fundamental change in how Hong Kong's wealthy families preserve and grow wealth across generations, potentially reducing demand in an already softening property market while redirecting capital flows toward financial services and investment products .
This shift signals a fundamental change in how Hong Kong's wealthy families preserve and grow wealth across generations, potentially reducing demand in an already softening property market while redirecting capital flows toward financial services and investment products .