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Hong Kong has emerged as the seventh most attractive destination for attracting and retaining the next generation of high-net-worth individuals (HNWIs), according to a Savills study. The city trailed behind Singapore, which ranked sixth globally, in terms of drawing HNWIs. The study, titled the Next-Generation Wealth Hubs Index, focused on individuals under 40 who have inherited significant wealth, expect to benefit from wealth transfers, or have built their own fortunes through entrepreneurship.

New York, Miami, and London topped the global rankings, while Tokyo, Shanghai, and Bangkok ranked third, fourth, and fifth in the Asia-Pacific region, respectively.

Residential real estate must now offer more than just capital preservation, according to the report. It must cater to the lifestyle, work, travel, connectivity, and future planning preferences of wealth holders and their families. Hong Kong houses 71 HNWIs under 40 with net assets of at least US$5 million, making it the 12th-largest concentration of such individuals worldwide and the largest in Asia-Pacific. Singapore ranked 13th with 70 HNWIs in the same category.

The study highlighted recent demographic shifts, indicating a growing proportion of wealthy individuals from mainland China drawn to Hong Kong's high quality of life and easy access. The city acts as a key gateway to international markets, boasting one of the world's most active initial public offering (IPO) markets and the highest proportion of millionaires relative to population in the Asia-Pacific region.

Hong Kong's wealth-hub status is further bolstered by the government's investments in medical facilities and yachting infrastructure. The city is also known for its lifestyle appeal, featuring 287 Michelin-listed restaurants and hosting numerous prestigious sporting events annually. Hong Kong will host the Hong Kong Open later in the month and the Bank of China Hong Kong Tennis Open in January, attracting top tennis players from around the world.

With an estimated US$84 trillion in wealth set to transfer between generations over the next two decades, according to consulting firm Capgemini, younger HNWIs are increasingly global in their outlook, emphasizing lifestyle, education, wellness, and personal values when deciding where to live, invest, and establish businesses. Associate director at Savills World Research, Kelcie Sellers, noted that capital is likely to become more selective, with scarce, turnkey, and highly serviced assets in markets combining legal stability, lifestyle quality, privacy, and long-term liquidity likely to remain resilient.

She emphasized that residential real estate must now do more than just preserve capital; it must support the diverse needs of wealth holders and their families.