A recent analysis by property consultancy Savills Hong Kong indicates that professionals from the crypto and hedge fund industries are significantly influencing the city’s residential rental market, which remains under pressure from a decline in traditional demand.
The findings reveal that leasing activities in the first quarter of 2025 have predominantly taken place in Kowloon and within lower rental tiers, despite an influx of expatriates returning from Singapore.
Moreover, the report highlights a prevailing lack of activity in the traditional luxury neighborhoods of Hong Kong Island, where leasing transactions have reportedly remained muted.
Crypto and Hedge Fund Expats Drive New Wave of Rental Demand in Hong Kong
Jack Tong, Director at Savills Research & Consultancy, explained that a fresh wave of tenants from mainland China, along with expatriates employed in hedge funds and the cryptocurrency sector, are key drivers behind this changing landscape.
Savills noted that during the final quarter of 2024, luxury rents in Kowloon saw an uptick of 3.9%, contrasting with a slight decline of 0.2% in rents across Hong Kong Island.
Among notable transactions was a 1,478-square-foot apartment in The Austin, West Kowloon, which secured a monthly rent of HK$75,500 (approximately US$9,700).
Additionally, government endorsement of the virtual asset industry has facilitated this influx of renters.
Since the launch of supportive policies in October 2022, Hong Kong has granted a total of 10 licenses to virtual asset trading platforms, including three permits in 2025 alone.
Among the new approvals is Bullish, a crypto exchange based in New York, which has the distinction of being the first international platform given the green light in Hong Kong.
Hong Kong's Land Registry recorded 6,661 sale and purchase agreements for all building units received for registration in March, marking a substantial increase of 54.7% from February and 32.9% year-over-year. The total value of these agreements reached HK$45.6 billion (US$5.86 billion), reflecting a 22.1% annual growth. pic.twitter.com/HoUOY9AsEH
— People's Daily – Hong Kong (@PDChinaHK) April 3, 2025
According to Legislative Council member and tech entrepreneur Johnny Ng Kit-chong, over 1,000 crypto-related companies have established their presence in Hong Kong since 2022, generating additional demand for both office and residential spaces.
He expressed optimism about the future, citing increasing recruitment needs among exchanges and blockchain firms.
The hedge fund industry is also playing a pivotal role in the rental market rebound. Savills pointed out that Point72 Asset Management has leased four floors in The Henderson building in Central, while the quantitative trading firm Jane Street has taken over Point72’s former space in Chater House.
Expatriates returning from Europe and the United States are drawn to the region to leverage market fluctuations across Greater China and Japan.
High-Earning Expats Fuel Demand for Premium Rentals on Hong Kong Island
A significant number of these expatriates are opting for modern apartments on Hong Kong Island, budgeting between HK$60,000 and HK$80,000 per month.
Families relocating to the area often seek larger residences in upscale neighborhoods such as The Peak or Mid-Levels, targeting budgets from HK$100,000 to HK$200,000 monthly.
One high-end property on Mount Kellett Road recently rented for a staggering HK$420,000 per month, according to Savills.
Meanwhile, mainland Chinese entrepreneurs are showing a preference for serviced apartments, valuing the flexibility they offer.
These business travelers typically invest over HK$100,000 monthly in temporary stays within prestigious developments such as the Four Seasons and Rosewood for durations of three to six months.
Furthermore, Financial Secretary Paul Chan announced that Hong Kong will unveil a detailed framework for virtual asset policies by the year’s end, as the city seeks to further develop its approach to Web3 technologies. This announcement was made during the Hong Kong Web3 Festival, where Chan emphasized plans to leverage Web3 to enhance traditional financial services.
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