‘Financial freedom’ costs US$4 million in Hong Kong, second only to London, data from property portal Juwai shows

The ability to retire comfortably and maintain an enviable lifestyle requires US$4.57 million in the UK capital and US$3.5 million in Shanghai, with Hong Kong in between, according to data compiled by property portal Juwai

Singapore, regarded as Hong Kong’s regional rival as a finance hub, is seventh on the list of 11 global gateway cities, with a threshold of US$3.23 million

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Reason to smile: A financially carefree lifestyle costs US$4 million in Hong Kong, according to Juwai. Photo: GettyImages

Published: 10:30am, 6 Apr 2021Updated: 10:44am, 6 Apr 2021

When it comes to achieving “financial freedom” – the ability to maintain a desirable lifestyle without having to work – only London is more expensive than Hong Kong, according to data compiled by online property portal Juwai IQI.

Based on Juwai’s estimates, the threshold for achieving this enviable level of wealth in Hong Kong would be US$4 million. The city, famed for its sky-high property prices, finds itself wedged between the UK capital on US$4.57 million and Shanghai on US$3.5 million. New York is a whisker behind, with a price of US$3.44 million for financial independence, just ahead of Tokyo on US$3.36 million.

Singapore, regarded as Hong Kong’s biggest regional rival as a finance hub, is seventh on the list with a requirement of US$3.23 million.

Financial freedom in this context means having enough savings and financial investments to retire and still afford a desirable family lifestyle without being driven by the need to earn a set salary each year. Specifically Juwai’s data is based on what would be needed to attain a home measuring some 120 square metres in a decent urban area, two good cars, plus roughly US$1.2 million in financial investments and US$90,000 in household income after tax.

“London is the only major world city [outside China] where it is more expensive to obtain financial freedom than it is in Shanghai or other Chinese tier 1 cities,” said Juwai IQI’s co-founder and group executive chairman Georg Chmiel.

A recent survey by Hurun found that “entry-level” financial independence in mainland China’s tier 1 cities like Beijing and Shanghai requires 19 million yuan (US$2.89 million), based on the same criteria as Juwai’s study.

“The key is the price of property,” said Rupert Hoogewerf, chairman and chief researcher of Hurun Report in an emailed reply to the Post. “I would expect the likes of London, New York, Tokyo, Sydney to be no more expensive than Shanghai, Shenzhen and Beijing.”

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