Hong Kong’s next-gen wealth shifts from property to hedge funds and liquid assets

A new wave of wealthy Hong Kong investors is steering away from traditional property investments, with family fortunes increasingly flowing into deposits, hedge funds, and other liquid assets, according to a report by the South China Morning Post. This shift in wealth management strategies reflects evolving expectations around Hong Kong's real estate market, particularly among families that have amassed extensive residential and commercial property holdings over generations.

Historically, property offered families numerous advantages, including rental income, capital appreciation, and collateral for subsequent investments. However, diminishing prospects for future price growth are compelling younger generations to reevaluate their concentration of wealth in tangible assets and explore a diverse array of liquid and alternative investment options.

These alternatives encompass long-short hedge funds, multi-asset strategies, and investments tied to emerging technologies such as artificial intelligence, biotechnology, and robotics. The heightened appeal of liquid assets is further fueled by the altered economic landscape, characterized by rising borrowing costs, declining rental yields, and fluctuating interest rates, which have altered the financial dynamics of property ownership.

Gabriel Chan, managing director and head of investment services at BNP Paribas Wealth Management in Hong Kong, observes that affluent clients with significant property holdings are gravitating towards alternative asset classes to diversify their investment portfolios. This shift in preferences among established Hong Kong families stands in stark contrast to the sustained demand for prime real estate from mainland Chinese buyers.

According to Centaline Property data, mainland purchasers accounted for approximately 80% of transactions involving homes valued at HKD100 million or more in The Peak and Southern districts during 2025.