Hong Kong property may see uptick in ‘safe haven’ demand as Iran war rattles Dubai market

The US-Israeli war on Iran has unleashed sharp swings across global energy and financial markets, fuelling demand for safe-haven assets, with Hong Kong emerging as a potential beneficiary across gold, property and capital markets. In the second of a three-part series, we look at Hong Kong’s position as a stable base where demand for property has held firm despite the global turmoil.

Hong Kong’s property market is showing early signs of renewed safe haven demand, with a surge in luxury transactions and record-high rents suggesting the city may be benefiting – however tentatively – from rising geopolitical tensions in the Middle East.

While it is too early for statistical evidence of large-scale capital inflows, anecdotal evidence is emerging.

Louis Ho Siu-tong, senior principal sales director for luxury districts at Centaline Property, said a Chinese entrepreneur based in Abu Dhabi, who runs a private jet consultancy, recently inquired about renting an upscale home in Hong Kong.

The client had been monitoring geopolitical risks since early this year, but worsening tensions in the region have accelerated plans to shift some of his operations. “If business cannot be done there as smoothly, they would rather move some operations to Hong Kong, where there are still opportunities,” Ho said.

The individual has yet to decide how much business to relocate, but the inquiry points to tentative movement of both capital and people.