Catenaa, Wednesday, April 16, 2025-Hong Kong’s residential rental market, traditionally slow due to weak demand, is experiencing a resurgence thanks to a wave of professionals from the crypto and hedge fund sectors. A new report from property consultancy Savills Hong Kong revealed that the first quarter of 2025 saw leasing activity focused on Kowloon and lower rental brackets, with expatriates returning from Singapore. Traditional luxury areas on Hong Kong Island, however, remained subdued, with minimal leasing activity.
According to Savills’ research, the shift is being driven by a new influx of renters, including mainland Chinese and expatriates working in hedge funds and the crypto industry. Luxury rents in Kowloon rose by 3.9% in the fourth quarter of 2024, while rents on Hong Kong Island saw a slight dip of 0.2%. One notable lease included a 1,478-square-foot apartment in West Kowloon, which rented for HK$75,500 (approximately US$9,700) per month.
The Hong Kong government’s support for the virtual asset sector, including the issuance of licenses to trading platforms, has played a key role in fueling this demand. Since the October 2022 policy rollout, 1,000 crypto-related firms have moved to Hong Kong. The hedge fund sector is also contributing to the rental recovery, with firms like Point72 and Jane Street expanding their presence.
With high-earning expatriates seeking premium rentals and mainland Chinese entrepreneurs preferring flexible serviced apartments, demand for residential and office spaces in Hong Kong is expected to continue growing. A new virtual asset policy framework is also set to be introduced later this year, further boosting demand for space.
