Why Hong Kong’s next-gen wealth is shifting from property to tech

Home prices in Hong Kong have gone up by more than 10% this year, signaling that its property market is bouncing back after a long slump that began in 2021. Yet despite this recovery and a long affinity with real estate, family offices are reducing their property exposure and moving into tech, particularly AI and pre-IPO companies, with a clear path to listing.

As the co-founder and CEO of Angelflow, a Hong Kong-based platform that connects angel investors with startups across Asia, I’m seeing this change first-hand. Inquiries about angel investing on our platform are up 30% year on year, with AI startups drawing the most interest.

Image credit: Ulla

One of the first backers in my previous company, a productivity device developed in Sydney, was the son of a family that built its wealth in primary industries and mining. However, he deviated from that and chose to invest in consumer and construction tech instead.

I’d seen this pattern before with my peers. I grew up and attended school in Hong Kong, and many of my classmates came from families with either longstanding property holdings or manufacturing businesses in China. After studying in the US or the UK, they returned seeking to start companies or manage investment funds rather than oversee real estate portfolios.

Now the next generation of family wealth is also swapping property for tech. Why is this happening, and what should founders and investors do about it?

Why property is losing out

Deloitte’s February 2026 study for InvestHK found that 22% of surveyed single-family offices plan to reduce real estate holdings over the next three years, the highest of any sector. Despite the market recovery, property was the only asset class where planned reductions exceeded planned increases.

The same shift shows up more broadly: In a July 2026 survey by DBS of 1,617 affluent investors in Hong Kong and mainland China, alternative investments recorded the strongest growth of any asset class, rising 10.3 percentage points to become the second-largest holding at 18% of portfolios.

Why make this swap? Real estate provides heirs with two things they increasingly avoid: an illiquid asset and an inherited responsibility. In contrast, pre-IPO tech investments offer liquidity and roles that align with their interests.

​The first benefit is a clear exit. Hong Kong raised HK$209.9 billion (US$27 billion) from 85 IPOs in the first half of 2026, its best in five years. Of these listings, 13 were made under Chapter 18C – the specialist technology chapter – compared to eight in the previous three years combined.

A startup you backed two years ago can become shares you sell with a click if it becomes public. In contrast, a three-bedroom flat in Hong Kong’s prestigious Mid-Levels district can’t offer the same flexibility.

Image credit: Ulla

​The second advantage is the opportunity for active involvement. Deloitte found that 40% of surveyed offices already have second-generation members in leadership roles. Moreover, third- and fourth-generation offices are more eager to invest in AI than earlier generations.

Where the money goes

The buy and the catch

The changes