Hong Kong heirs move family wealth from property to liquid assets

Young wealthy investors in Hong Kong are shifting family capital out of residential and commercial property into bank deposits, hedge funds and other liquid investments. The change is most visible among next-generation members of families that have held large property portfolios for decades.

Clients are placing money into cash deposits, long-short hedge funds, multi-asset strategies and sector-specific investments in artificial intelligence, biotechnology and robotics. Wealth advisers report clients are prioritizing liquidity and broader exposure rather than concentrated property holdings.

Market expectations for strong future price gains in Hong Kong real estate have cooled. Rising borrowing costs, changes in rental yields and higher interest rates have altered the economics of owning investment property. For families holding large portfolios, those factors have reduced projected returns and increased holding costs.

Gabriel Chan, managing director and head of investment services at BNP Paribas Wealth Management in Hong Kong, noted: “Wealthy clients with already substantial property exposure are increasingly looking at other asset classes to diversify their portfolios.”

Property continues to offer rental income, potential capital gains and physical collateral that can be used to secure loans. Some family members maintain legacy holdings for income and succession reasons, while others trim property stakes and reallocate capital into liquid and alternative strategies.

Data from Centaline Property showed mainland purchasers accounted for about 80% of sales of homes priced at HKD100 million or more in The Peak and Southern district during 2025, indicating ongoing demand for ultra-prime residential units from mainland buyers even as local investment patterns change.

Financial institutions in Hong Kong report rising client interest in portfolio diversification solutions that include hedge funds and multi-asset products focused on long-term thematic growth areas. The trend varies by household, with some families expanding property holdings and others reducing exposure.