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Tag: real

  • Wealthy Hong Kong Citizens Prioritize Travel Over Real Estate: A Paradigm Shift in Life Goals

    Wealthy Hong Kong Citizens Prioritize Travel Over Real Estate: A Paradigm Shift in Life Goals

    For affluent Hong Kong residents, the allure of real estate doesn’t hold the same level of appeal as it once did, according to a recent study. Interestingly, travel appears to be taking precedence over traditional investments like property. Only a quarter of those surveyed ranked buying a house as a significant life goal, putting it in seventh place.

    Travel as a Form of Investment

    The study interestingly revealed that immersive travel experiences were a priority for almost half of the wealthy respondents, ranking second only to early retirement. The study polled 1,058 affluent Hong Kong residents aged 30 and above, each with at least HKD1 million of investable assets.

    The report revealed that for a majority of high-net-worth individuals (HNWIs) polled, travel was not just a leisure activity but a means to “build intangible capital, broaden outlook and sustain long-term well-being”. This sentiment was shared by almost three-quarters of the HNWIs who took part in the survey.

    Among wealthy parents, there was a clear trend towards valuing overseas travel as a significant component of their child’s educational investments. It was considered more valuable than tutoring or extracurricular activities.

    The Waning Influence of Real Estate

    Despite the shifting perspective towards real estate, it’s important to acknowledge the historical importance of the sector for Hong Kong households. In the early 21st century, real estate contributed to more than 30% of the city’s GDP. However, it’s influence has been waning, declining to about 21% in 2021.

    As affluent residents shift their financial focus towards travel, the amount they are willing to spend on it is rising. On average, HNWIs planned to spend HKD345,000 on travel this year. This figure is significantly higher than the average of all respondents, though it falls below the peak recorded in 2024 when post-pandemic outbound tourism was notably popular.

    Furthermore, two-thirds of HNWIs reported that their travel expenditures exceeded their daily living expenses, including dining, entertainment, and other forms of lifestyle consumption.

    Questions & Answers

    What is the emerging trend among affluent Hong Kong residents according to the study?
    Travel is emerging as a preferred form of investment among affluent Hong Kong residents, with immersive travel experiences ranking high on their list of priorities.

    How did real estate rank in the life goals of wealthy Hong Kong residents?
    Only 24% of the respondents chose buying their first home or owning a dream home as one of their life goals, making it the seventh most popular life goal.

    Are high-net-worth individuals spending more on travel compared to daily living expenses?
    Yes, two-thirds of high-net-worth individuals reported spending more on travel than on daily living expenses like dining, entertainment, and lifestyle consumption.

  • Hong Kong Luxury Real Estate Shuffle: Prince Jewellery Director Trades up with $6.4M Duplex Purchase

    Hong Kong Luxury Real Estate Shuffle: Prince Jewellery Director Trades up with $6.4M Duplex Purchase

    Tang Yick-ki, a director of Prince Jewellery and Sky Regal Properties, has recently engaged in significant real estate transactions in Hong Kong. He sold an apartment in Kowloon and obtained a two-story home in the vicinity for HKD50 million (US$6.4 million). These deals were completed in just over a month.

    Real Estate Transactions

    Tang sold his three-bedroom apartment, boasting 95 square meters of living space, located on the 71st floor of The Cullinan on Austin Road West in West Kowloon. The selling price was HKD46 million (US$5.9 million). Land Registry records confirmed the deal was finalized on January 5. Tang originally bought the apartment in 2016 for HKD32.5 million, meaning the property has increased in value by 41% in the intervening years.

    Roughly three weeks after this sale, Sky Regal Properties, where Tang serves as the sole director, purchased a duplex in The Waterfront, a residence within the same vicinity. According to the Land Registry, the transaction was completed last week for a cost of HKD50 million. Real estate agents specified that the duplex is 145 square meters and situated on the 45th floor.

    Prince Jewellery and the Hong Kong Property Market

    Prince Jewellery, with a 40-year history in Hong Kong, operates 16 retail stores and hosts over 60 globally recognized brands. The company’s recent real estate transactions come at a time when the Hong Kong property sector is gradually recovering from a prolonged slump. Despite persisting uncertainties, affluent homeowners like Tang are anticipated to continue seeking home upgrades.

    Some industry experts indicate that wealthier residents may choose to improve their current residences. However, this trend might not extend to those who invest in properties purely for financial gain. Additionally, home upgrades tend to become more popular during periods of market instability.

    Land Registry records also showed that another duplex in The Waterfront was sold for HKD50 million last week. The property was acquired by an entity known as Tung Tak, which had purchased it for HKD48.8 million in 2023.

    Questions & Answers

    What recent real estate transactions has Tang Yick-ki engaged in?
    Tang Yick-ki, a director of Prince Jewellery and Sky Regal Properties, has recently sold an apartment in Kowloon and bought a two-story residence nearby for HKD50 million.

    How is the Hong Kong property sector performing currently?
    The Hong Kong property sector is gradually emerging from a prolonged downturn. Despite ongoing uncertainties, affluent property owners are expected to pursue property upgrades.

    What is the trend concerning home upgrades in Hong Kong?
    Home upgrades tend to become more popular during periods of market instability. However, this trend might not apply to those who acquire property solely for investment purposes.

  • Oliver’s founder and former CEO takes up mantle again

    Oliver’s founder and former CEO takes up mantle again

    Less than a year after exiting Oliver’s Real Food, Jason Gunn is once again chief executive and an executive director on the board of the company he founded.

    The decision follows the departure of Gunn’s replacement, Greg Madigan, who resigned earlier this month after ten months in the role.

    The news drove up the business’s share price from 0.022 cents per share to 0.029 cents per share, a 31.8 per cent increase.

    The announcement was part of a broader leadership change that saw Nicholas Downer named chairman and non-executive director, Steven Metter named company secretary and non-executive director and Amanda Robson Gunn named operations manager and executive director.

    Downer said to shareholders that the brand’s head office had become bloated, and was no longer focused on performance at the cash register.

    After investigating the business’s expenditure, the incoming board found a weekly cash burn rate of approximately $100,000, as well as a number of fees related to consultants and advisors which have now been ceased.

    “The focus of the board and management will be to return calm and confidence to our employees, a relentless focus on implementing [our] cost savings…, returning the business to the successful formulae from it’s pre-IPO stage, all designed to increasing turnover and profits, and rebuilding shareholder value,” the chairman said in his address to shareholders.

    According to Downer, Gunn returns to the business “invigorated, relaxed and ready for this challenge.”

    “As founder and creator, Jason is undoubtedly the right person to drive the business through this turnaround process, as he did while Oliver’s grew at the rate it did over the last 10 years,” Downer said in a note to investors.

    The changes come after Oliver’s suffered a difficult holiday period, having dropped its expectations for the remainder of the year to an EBITDA loss of between $1 and $4 million.