Did you know that Hong Kong has the highest concentration of ultra-wealthy people in the world? According to Business Insider, 1 out of 7 people in Hong Kong is a millionaire. This is staggering given the fact that Hong Kong has a population of 7.36 million according to statistics from 2017. Have you been wondering what the super-rich in Hong Kong do with their money and where they keep it? There has been a rise in storage vault service in Hong Kong because of the increase in wealth almost on a yearly basis.
According to statistics, the number of Hong Kong millionaires increased by 15% in 2017 and the number is set to go up still, given the growth of the economy despite the political upheavals.
The increased number of millionaires has been reflected in property prices and the increased demand for vault storage facilities as well. In 2017, it broke several property records. The most expensive apartments in the city are valued at $430 million. There is a serious housing crisis in Hong Kong currently because the majority of the land has been zoned for high-end property development.
The reasons for the growth in the number of millionaires in the last year is because of property markets and the rise in stock prices. According to Business Insider, only about 71% of mainland millionaires run their own business while about 21% outside run their own business.
Why Does Hong Kong Have So Many Rich People?
It should be noted that not all of Hong Kong’s millionaires are of Chinese origin. Hong Kong has been for years considered a place of the wealthy. It is considered to be the gateway to China and is the country’s most popular business destination. It is considered a vital city for networking if you want to establish a business presence in China.
Hong Kong is popular with start-ups and it is very easy to start a business in the city so long as you follow the due process. International investors like the city because you can start and own your business 100% without having to worry about obtaining permanent residency. Hong Kong has, for the last 20 years, retained the title of the world’s freest economy and things are bound to remain the same in the near future.
Why There is an Increased Demand For Storage Vaults in Hong Kong
The increase in wealthy people has seen an increase in demand for vault services. The super-rich in Hong Kong is known to be very generous when it comes to purchasing luxury items. It would only make sense to look for storage vaults as some of the items that are purchased that do not have to be used immediately. With a private storage vault, the items can be wrapped and padded for safety. The vaults are then assigned a unique tracking code so that the owner can keep a tab of the item at any given time.
As we’ve already mentioned, there is a crisis in Hong Kong as far as real estate is concerned. Most of the prime land in the city has been secured for prime real estate developments. The Hong Kong millionaire likes to buy things but there can be limitations when it comes to space. With vault storage, you’re able to determine the space you need depending on the item. You only pay for the space that is being used. It is not uncommon to hear of the wealthy people in Hong Kong keeping their vintage art and antique collections in highly secure vault storage because they can’t seem to collect enough. A vault storage facility is safe and highly guarded to keep such valuable items.
The rich are also using vault storage for their high-end luxury cars. Vault storage will come in handy when there is a gap between the move-out and move-in dates. It would be better to let someone else handle the logistics, especially in a city like Hong Kong where everything can go wrong in a fraction of a second. The discerning millionaire will always have a need for vault storage facilities.
Hong Kong has been and will remain as one of the most favorable places in the world to do business. This is because it provides a conducive environment for both local and international investors. The ease of doing business is further facilitated by incentives from the government. It is no wonder why it has the highest concentration of dollar millionaires in the world.