Crypto, Hedge Fund Professionals Boost Hong Kong Rents 3.9%

Professionals working in the crypto and hedge fund sectors are playing a pivotal role in bolstering Hong Kong’s residential rental market, which has been struggling due to weak traditional demand sources. According to a report by Savills Hong Kong, leasing activity in the first quarter of 2025 remained concentrated in Kowloon and in lower rental brackets, despite the return of expatriates from Singapore. Traditional luxury enclaves on Hong Kong Island have seen relatively subdued activity, with minimal leasing recorded in those areas.

Jack Tong, Director at Savills Research & Consultancy, highlighted that a new wave of renters from mainland China and expatriates working in hedge funds and the crypto industry have driven this shift. The influx of these professionals has contributed to a rise in luxury residential rents in Kowloon by 3.9% in the fourth quarter of 2024, while rents on Hong Kong Island dipped by 0.2%. A notable lease included a 1,478-square-foot apartment at The Austin in West Kowloon, which rented for HK$75,500 (approximately US$9,700) per month.

Government support for the virtual asset sector has been a significant factor in this trend. Since the policy roll-out in October 2022, Hong Kong has issued 10 licenses to virtual asset trading platforms, including three approvals in 2025 alone. Bullish, a New York-based crypto exchange, was among the newly approved, marking the first international platform to gain Hong Kong’s endorsement. Legislative Council member and tech entrepreneur Johnny Ng Kit-chong noted that over 1,000 crypto-related firms have relocated to Hong Kong since 2022, further boosting demand for office and residential space. He added that the outlook is promising, with growing hiring needs among exchanges and blockchain companies.

The hedge fund sector is also contributing to the rental recovery. Savills cited Point72 Asset Management leasing four floors in The Henderson in Central, while quantitative trading firm Jane Street took over Point72’s previous space in Chater House. Expatriates from Europe and the U.S. have returned to the region to capitalize on market volatility across Greater China and Japan. Many are renting newer apartments on Hong Kong Island with monthly budgets between HK$60,000 and HK$80,000. Senior executives relocating with families are seeking larger homes in high-end areas like The Peak or Mid-Levels, with budgets ranging from HK$100,000 to HK$200,000 per month. One luxury house on Mount Kellett Road rented for HK$420,000 monthly, according to Savills.

Meanwhile, mainland Chinese entrepreneurs are favoring serviced apartments for their flexibility. These business travelers have spent over HK$100,000 per month on temporary residences in prestigious developments like the Four Seasons and Rosewood for stays of three to six months. As reported, Hong Kong will introduce a more detailed virtual asset policy framework by the end of the year, as the city continues to refine its approach to Web3 and related technologies. Financial Secretary Paul Chan said the forthcoming policy statement will expand on the government’s previous commitments, with a focus on using Web3 to enhance traditional financial services.