Hong Kong's number of multimillionaires has grown at a higher rate than the worldwide common, a fashion this is in all likelihood to guide the call for tokenization and ownership of property.
FREMONT CA: According to the Knight Frank poll, the number of multimillionaires in Hong Kong increased higher than the global average the previous year. However, this trend is expected to promote tokenization and digital property ownership demand.
The number of highly high-net-worth individuals (UHNWIs) in the city increased by 11 percent to 7,593, with 30 percent under the age of 40–data stated by the property consultancy firm in its Wealth Report. The size of multimillionaires increased by 9.3 percent to 610,568, with the people below 40 accounting for one-fifth of them from across the world. In China, the number increased by 29 percent to 93,854 below 40.
The researchers focused on people in 100 areas with at least $30 million in wealth, such as their primary residences. They predicted for the primary time the rank of next-generation UHNWIs and what it meant for the property market and their investment preferences.
Over the next decade, digital real estate will be just as important as physical assets. There is a significant increase in real estate developers interested in tokenizing properties and investing in those tokens. At the same time, as massive Tech explores the next frontier of the metaverse, the demand for tokenization and digital property ownership has grown with wider adoption among younger generations. Digital assets, such as non-fungible tokens and cryptocurrencies, have enticed investors at the same time when regulators have stepped up their anti-fraud efforts. Hong Kong's younger generation of UHNWIs' sense of entrepreneurship is usually more substantial. They have a well-balanced portfolio of classic blue-chip assets like residences, stocks, and watches, as well as emerging asset classes like cryptocurrency, digital arts, and lifestyle commodities.
Multimillionaires are keen to hold belongings across extraordinary geographies apart from the interest in digital ownership. On average, they kept 27 percent of their investable wealth in real estate. Despite the pandemic and economic uncertainty, private capital investment in commercial real estate is expected to exceed the previous year's record inflows of USD 405 billion. This represents a 52 and 38 percent increase over the five-year pre-pandemic average.
