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Hong Kong property
Business

Cryptocurrency buzz is not enough to lead recovery of Hong Kong’s battered commercial property market, analysts say

  • Despite its early promise, the segment is unlikely to become the ultimate saviour of the city’s sagging retail property market, according to analysts
  • The dramatic collapse of FTX in November sent shockwaves through the industry, and made some crypto firms reluctant to risk expansion

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In a survey released in December 2021 by Visa, Hongkongers emerged as among the world’s largest investors in cryptocurrency. Photo: Shutterstock
Cheryl ArcibalandLam Ka-sing
Hong Kong’s bid to become a cryptocurrency hub, and the apparent appetite of its citizens for virtual assets as an investment, have prompted new-economy firms to take up commercial space in the city.
In May last year, a survey by Savills showed businesses focused on digital currencies, NFTs and blockchain, buoyed by big profits, were creating new demand for office space.

Firms such as Mantra, which operates a blockchain ecosystem, and 8 Blocks Capital, a cryptocurrency trading firm, took up office spaces on the fringes of Central, Hong Kong’s main business district.

Coingaroo opened two digital currency exchange outlets, one in Mong Kok in Kowloon and the other in Causeway Bay on Hong Kong Island, according to its website. Its office is also in Mong Kok.

In Tin Hau, a two-storey shop is occupied by CoinWeMit, which offers over-the-counter services for investors in cryptocurrencies such as bitcoin, Ethereum and Tether.

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Cryptocurrency volatility highlighted by China’s recent crackdown and Elon Musk comments

Cryptocurrency volatility highlighted by China’s recent crackdown and Elon Musk comments

Their presence brought some welcome relief to a segment that had been mired in a downturn as Covid-19 drove multinational companies away and sparked an exodus of locals and expats.

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