‘Huge influx’: expat retirees projected to drive Hong Kong’s premium home demand

Hong Kong is expected to experience a surge in luxury home sales as expatriate retirees choose the city as their retirement destination, according to analysts. Victoria Allan, founder and CEO of Habitat Property, states that many expats who previously would have retired elsewhere are now staying and purchasing property for the first time.

High-end property deals have recently involved non-local top executives and business founders. About 30% of Habitat's recent sales were contributed by expat clients, who are buying with a long-term lifestyle plan in place, primarily for tax status. Notable purchases include Swire Pacific chairman Guy Bradley's HK$50 million (US$6.37 million) property on Stanley Beach Road and Sachin Tulshyan's HK$75 million detached house in Tai Tam.

William Lau, senior director at Knight Frank, highlights the appeal of Hong Kong's low-tax environment, world-class healthcare system, and high standard of living. Knight Frank expects a gradual stream of wealthy retirees settling permanently in the city, adopting a 'rent first, buy later' strategy to familiarize themselves with different neighborhoods.

However, analyst Cathie Chung from JLL warns that while Hong Kong continues to attract high-net-worth individuals for business opportunities, retirement is a different proposition due to the high cost of living, particularly housing and daily expenses.