Hong Kong’s new wealth hub status puts real estate in the spotlight

Hong Kong’s rise as a global private wealth hub is already translating into a new wave of demand in the city’s real estate sector.

In the first half of 2026, private wealth investors accounted for US$839 million in the city’s real estate transaction volumes, up 40% from a year earlier, JLL data shows. Living and multifamily assets accounted for nearly half of that volume, while office assets made up another 30%.

The spike in investment activity comes as Hong Kong edged ahead of Switzerland to become the world’s largest cross-border wealth hub for the first time, according to a report by Boston Consulting Group.

With cross-border wealth booked in the city reaching US$2.9 trillion last year and expected to grow at 9% annually, Hong Kong remains a magnet for private investors, particularly mainland Chinese, Indian, and Southeast Asian capital.

While recent wealth inflows and strong capital market activity have added to the city’s appeal, many of its advantages have been built over decades.

“Hong Kong is still one of the easiest places to set up a business, to invest and to live in, even when compared to other global gateway markets,” says Tim Graham, Global Lead, International and Strategic Capital, JLL Capital Markets.

“Its strong legal and regulatory framework, access to global capital, deep talent pool and connectivity to Mainland China continue to reinforce its status as a trusted international business and investment hub.”

One of the biggest drivers of Hong Kong’s new wealth hub status has been mainland Chinese capital, which accounted for 60% of cross-border assets under management, BCG data shows.

The city’s resurgence as a leading global fundraising venue has become another important draw for mainland Chinese capital.

“Hong Kong’s strength as the IPO capital of the world is highly attractive, particularly for Chinese firms looking to use the city as a launch pad to go global,” says Graham.

Last year, mainland Chinese companies accounted for 92% of all IPO listings and 85% of funds raised. The momentum continued into the first half of 2026, with listings and fundraising rising by 94% year on year, while more than 400 active IPO applications are in the pipeline for the rest of the year.

The growth in cross-border wealth is also showing up in Hong Kong’s real estate market.

A prime example is the luxury residential sector, where rents are expected to grow by 5% in 2026, JLL data shows.

The influx of expatriates, particularly across investment banking, legal, audit and compliance, has pushed demand for luxury residential units higher as fundraising activity gathers pace in Hong Kong.

A recovery is also underway in the office leasing market. With private banks, family offices and asset managers looking to expand in the city, Grade A office space in the Central Business District is drawing steady demand.

In the first half of 2026, Grade A office rents edged up 3.2% and are on track to rise by up to 15% for the full year, according to data from JLL.

Activity is also picking up on the dealmaking front, with private investors looking for opportunities across prime residential and select retail assets. 

Take JLL’s recently closed US$165.7 million sale of the eight-storey MPM Plaza in Mong Kok, one of the city’s major shopping districts. The deal was the city’s largest retail property transaction this year, with the ultimate owner being a private wealth investor, signalling continued interest in quality assets offering attractive yields across Hong Kong’s core shopping districts.

In addition, JLL also facilitated the competitive disposal of McDonalds’s retail portfolio across Hong Kong that has fetched over HK$1 billion since August last year. The transactions reflect renewed investor confidence in the city’s well-positioned properties, particularly assets with strong covenant tenants and long leases.

“Hong Kong’s retail investment market has regained momentum since 2025 as more high-quality retail assets have been released for sale,” says Oscar Chan, Head of Capital Markets, JLL Hong Kong. “This has attracted old money, manufacturers, entrepreneurs and emerging investors who have made profits from the office and residential markets to enter the retail investment market.”

Interest is also extending to luxury residential assets. Belvedere, a 21,170-square-foot property in the luxury enclave of Chung Hom Kok, was acquired for US$38.24 million by SC Capital Partners Group, a Singapore-based Asia Pacific real estate investment fund. The deal highlights investor interest in a segment where opportunities remain scarce.

Over the next 12 months, opportunities for private wealth are expected to broaden across different real estate sectors, according to Dan Billig, Senior Director, Global Capital Markets, Hong Kong.

“We expect living assets, particularly prime residential and purpose-built student accommodation, to remain a key priority for private wealth, while improving fundamentals should also support renewed interest in strata offices and hotels,” says Billig.

Alongside opportunities at home, Hong Kong-based private wealth is beginning to look outward again.

“As the domestic real estate market gradually recovers and developers begin to realise exits, we’re seeing previously cautious private wealth groups reconsider diversification into other global gateway markets,” says Billig.