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Peggy Ye

When Maria’s family moved out of their house in Hong Kong’s Southern district, one of the bigger jobs was packing her mother’s belongings, including the orange Hermes boxes that had accumulated in the family gym.
Her 86-year-old father was reluctant to rent, while her mother – who had spent her life buying homes – initially insisted that if they were going to rent, she wanted a house rather than a flat.
“I have never rented a home in my entire life,” she said.
They eventually settled at The Repulse Bay, a seaside luxury complex long popular with expatriates and senior professionals who rent in Hong Kong for the flexibility to move on.
Three generations of the family now live there in separate rented flats of about 2,500 square feet each. Maria – who asked that her family name be withheld – shares one with her parents, her brother rents another, and her sister is preparing to move into a third.
When the next generation comes to us, they often say the same thing: financial assets are simply much easier to manage
Clifford Ng, Zhong Lun Law Firm
The arrangement keeps the family close, but for Maria the more important question is what happens to the capital that would otherwise be tied up in another home.
Her father built the family fortune through a screen-printing business he started in Hong Kong in the 1960s, with the family accumulating property along the way.
Maria recently took over management of the family’s investments. She said liquid and illiquid assets were roughly split, with the family still holding substantial residential and commercial property.
“I want to liquidate everything,” she said.
Among the properties Maria wants to sell is a commercial unit at The Centre in Central, the property she said she “hated the most.”
Bought for more than HK$100 million (US$13 million) in cash and without leverage, Maria estimates it is now worth about HK$60 million. The family also owns multiple residential properties worth HK$20 million to HK$30 million each.
“I’m holding a property, but I can’t use that money,” she said. “I would rather liquidate it and have it make more money for me.”
For generations, that would have been an unusual calculation in Hong Kong, where profits from businesses were often channelled into flats, shops and offices that could generate rent, appreciate, provide collateral for further borrowing and eventually be passed to children.
Maria no longer expects the same gains.
“Before, HK$5 million could easily become HK$15 million,” she said. “Now, if HK$5 million becomes HK$5.1 million, you’d almost sell it.”
She is redirecting proceeds into liquid investments, including long-short hedge funds, multi-asset strategies, and investments in artificial intelligence, biotechnology and robotics.
Gabriel Chan, managing director and head of investment services at BNP Paribas Wealth Management in Hong Kong, said the calculation was becoming more relevant for wealthy clients who already held sizeable property portfolios, although he did not expect them to abandon real estate altogether.
“A lot of people got rich through properties ... but that’s why they would like to diversify,” Chan said. “The incremental investment may not be in real estate again.”
The trade-off had become more visible as Hong Kong residential rental yields of about 3 to 3.5 per cent compared with US dollar deposit rates above 4 per cent, Chan said.
“Even a deposit is paying you better than residential properties,” he said. “That’s the trade-off. Everything is relative.”
For Maria, the numbers make renting easier to justify. One of her US$5 million private banking accounts earning 5 to 6 per cent would already generate US$250,000 to US$300,000 a year, she said.
“Isn’t that more than enough for rent?” she said. “You can buy 20 more orange boxes with it.”
I’m not against property. But I just don’t see those multiples happening in real estate any more. It’s not happening, not in my lifetime
Maria, next-gen investor
To support her and her family’s lifestyle at The Repulse Bay, she budgets about HK$5 million a year for rent, management fees, rates, utilities and household expenses, arguing that returns on the capital she would otherwise have put into a home can cover the cost of living there while leaving the principal invested.
The calculation is also tied to succession. Maria has no children, while her siblings do, and she plans to retain a few flats for the younger generation while selling the rest.
“The easiest thing to divide is money,” she said.
Clifford Ng, a lawyer who advises family offices at Zhong Lun Law Firm, said younger heirs were often less interested in taking on physical assets accumulated by their parents and grandparents.
“When the next generation comes to us, they often say the same thing: financial assets are simply much easier to manage,” he said.
That can be particularly relevant for Hong Kong families whose fortunes were built in manufacturing and trading, as some third- and fourth-generation members move overseas or decide not to continue the businesses that created the family wealth.
The shift is taking place even as another pool of wealth is returning to Hong Kong property. Mainland Chinese buyers accounted for roughly 80 per cent of transactions involving homes worth HK$100 million or more in The Peak and Southern district in 2025, according to Centaline Property.
For Maria, there is no contradiction in wanting to continue living in one of Hong Kong’s most expensive neighbourhoods while choosing not to own the home.
The family has become accustomed to the convenience of The Repulse Bay, where three generations can live nearby and building staff handle maintenance and facilities.
Her father, long accustomed to being a property owner, has since changed his mind about renting. Maria has not changed hers about property.
“I’m not against property,” she said. “But I just don’t see those multiples happening in real estate any more. It’s not happening, not in my lifetime.”


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Property is losing its sparkle for next-generation investors who prioritise liquidity, easy succession and higher returns


Property is losing its sparkle for next-generation investors who prioritise liquidity, easy succession and higher returns.


Next-gen wealthy Hongkongers drop property for higher returns in deposits and hedge funds

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Property is losing its sparkle for next-generation investors who prioritise liquidity, easy succession and higher returns

Property is losing its sparkle for next-generation investors who prioritise liquidity, easy succession and higher returns