Market observers note that a significant number of expatriates who previously lived in Hong Kong are returning with a longer-term perspective, often oriented toward retirement. Victoria Allan, Founder and CEO of Habitat Property, observes: “A huge influx of expats who used to live in Hong Kong are moving back with a long-term view to retirement.”
This change in buyer behaviour is becoming more evident among leading agencies. Allan notes that many expatriates who might once have left the city to retire are now remaining and purchasing property for the first time. Approximately 30 per cent of Habitat Property’s recent sales have been contributed by expat clients. Structural advantages continue to underpin this trend, including a simple tax system, the absence of capital gains tax, a robust legal framework and access to world-class healthcare. These factors are encouraging foreign residents to secure a more permanent position in Hong Kong.
The Rise of Lifestyle-Driven Acquisitions
High-net-worth buyers are placing greater emphasis on long-term personal utility rather than viewing real estate solely through a yield-focused lens. “Previously, people were buying property as an investment. While they are still doing that, clients are also buying with a lifestyle plan in place – for retirement along with the long-term benefits of being based in Hong Kong, primarily for tax status,” Allan highlights.
Demand remains concentrated in established prime enclaves where low-density inventory is limited. The Southern District, encompassing Repulse Bay, Deep Water Bay, Stanley and Tai Tam, continues to attract substantial interest, as do high-altitude residences on The Peak. Buyers prioritising quality of life are actively seeking detached houses, private garden residences and scarce luxury penthouses.
Re-Emergence of International Capital
The return of expatriate buyers marks a broader turning point for the local residential landscape. “And, yes, we are seeing expat clients back in the market – the first time since 2019,” Allan adds. Many incoming purchasers are adopting phased entry strategies, using initial provisional leasing periods to assess specific neighbourhoods before committing to high-value acquisitions. This approach continues to support prime rental yields while maintaining a pipeline of prospective luxury buyers.
As global asset allocations respond to shifting economic cycles, Hong Kong’s luxury residential segment continues to function as a resilient store of value. Prime holdings in premier coastal and hillside developments have historically demonstrated relative stability during broader market adjustments. Strategic buyers who identify high-grade assets remain well positioned as transactional activity rebuilds.
To explore available luxury residences or discuss a strategic property plan, contact the private client team at Habitat Property.
