Chinese investors are shifting focus from luxury real estate to Bitcoin and global equities due to declining property values and rising risks. Property markets Chinese investors are shifting focus from luxury real estate to Bitcoin and global equities due to declining property values and rising risks. Property markets

China’s Wealthy Shift Focus from Luxury Property to Bitcoin for Capital Preservation

  • Chinese investors are shifting focus from luxury real estate to Bitcoin and global equities due to declining property values and rising risks.
  • Property markets in Shenzhen Bay and other high-end areas are facing declines, while digital assets are seen as more liquid and flexible investments.

Chinese investors have begun reevaluating the value of luxury real estate as the allure of Bitcoin and other global equities rises. This shift in perception is particularly notable in markets like Shenzhen Bay, once considered one of China’s most prestigious property areas. With luxury properties now seen as less secure and increasingly illiquid, many investors are favoring digital assets like Bitcoin over real estate.

Traditionally, real estate has been viewed as a long-term, secure investment. However, declining prices and rising illiquidity have triggered rising doubts in Chinese investors about its viability as a store of value. According to local reports, properties worth Y60-66 million ($414,000-455,000) are being traded against Bitcoin, Nvidia stock, and Binance Coin (BNB).

A widely circulated story of a Y66 million property in Shenzhen cautioned that its price might fall to Y30 million over three years because of instability in the market. The post says that prices of property in the region have already dropped by almost half, and further drops are expected in the event of a wider financial crisis hitting the markets. Local analysts stress that, compared to Bitcoin and international equities, property is not as adaptable.

Along with decreasing prices, various investors are more conscious of the liquidity concerns related to high-end property. Demand and supply of luxury real estate are slow, and properties priced above Y100 million ($13 million) receive more tax attention, which doubles political and regulatory risk. 

Conversely, digital assets such as Bitcoin and equities are perceived to be more flexible. They can be traded more easily cross-border and are a hedge against local risks. An example is younger investors who are frequently locked out of the luxury real-estate market and are instead turning to digital assets for better risk profiles and quicker access to capital.

In Hong Kong, property is increasingly seen less as a profitable investment and more as a means of securing freedom and mobility.

China’s Bitcoin Landscape Update

The growing interest in Bitcoin and digital assets comes amid an evolving regulatory environment in China. As CNF outlined, China’s Supreme People’s Court recently emphasized the need to improve the legal frameworks for digital transactions and virtual assets. 

With increasing interest in digital assets, particularly in a market like China where traditional investments are being questioned, clearer regulations may soon be necessary to protect investors.

Despite China’s strict stance on private cryptocurrencies, the country has has seen resurgence in Bitcoin mining activity. Underground miners now account for an estimated 14–20% of the global Bitcoin hashrate. However, as we reported, the People’s Bank of China (PBOC) continues to maintain that cryptocurrencies like Bitcoin remain illegal tender in mainland China.

Bitcoin trades at $87,920, gaining 1.2% in the past day despite a 16% dip in trading volume.

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