China's Wealthy Are Reassessing Property Value Against Bitcoin — And Housing Is Declining

Affluent Chinese investors are increasingly reevaluating whether luxury real estate maintains its longstanding reputation as a reliable store of value.

Key Takeaways

Affluent Chinese investors are reconsidering luxury real estate as a reliable store of value.
Discussions online indicate a trend of comparing property values with cryptocurrencies and global equities.
Concerns about property prices declining have led to calls for a more investment-focused perspective on home ownership.
With increased regulation, liquidity, and capital mobility are becoming vital factors in investment decisions.
Younger investors are shifting towards digital assets and international stocks, favoring liquidity and clear risk profiles over traditional real estate investments.

Images and figures illustrating these trends remain unchanged and will visually complement the content provided.

Discussions spreading on Chinese social media are showing how properties priced between ¥60–66 million ($414,000–$455,000) in Shenzhen Bay are being compared directly to Bitcoin, Nvidia stocks, and BNB. These assets are viewed not merely as symbols of status but as competing options within a global investment portfolio.

The Shift in Perspective: Wealthy Chinese Rethink Home Ownership

This transformation in outlook is notable, especially considering that Shenzhen Bay was once regarded as one of mainland China's most prestigious and resilient property markets. However, recent posts indicate that even this area is not exempt from scrutiny.

One widely-circulated account recounted a visit to a ¥66 million property while cautioning a friend that its value might plummet to ¥30 million within just three years. The post noted that prices in the region have already seen a reduction of nearly 50%, with further declines anticipated should a wider financial crisis occur.

“Houses themselves lack intrinsic value; purchasing a home should be considered from an investment standpoint,” the user commented, referencing insight from TRON founder Justin Sun. When compared with globally liquid assets like Bitcoin, Nvidia shares, and BNB, the user concluded that the choice is “pretty clear.”

Other investors echoed these sentiments of anxiety. A user who took on a ¥60 million mortgage in Shenzhen expressed uncertainty, saying, “I don’t know whether to be happy or uneasy.”

“Indeed, I took on a 60 million mortgage for Shenzhen CITIC City Opening Xinyue Bay. My mood doesn’t know whether to be happy or uneasy,” the user noted.

One individual humorously referred to themselves as a “house slave” and acknowledged that only paying in full alleviated the mental burden of debt. Meanwhile, others cautioned against high mortgage rates, rising housing inventory, and the risks associated with tying up capital in a single illiquid asset.

Beyond declines in prices, this debate points to deeper issues regarding liquidity and political oversight. Investors assert that high-end properties have become challenging to sell quickly and are increasingly subject to regulatory scrutiny.

Purchasing a home costing ¥100 million or more can trigger tax investigation and oversight, creating additional risks, especially in times of policy tightening. In contrast, cryptocurrencies and global equities are seen as more easily tradable, hedged, and transferable across borders.

The Premium on Hong Kong Property: Prioritizing Freedom Over Returns

This reevaluation also sheds light on why property in Hong Kong continues to maintain a premium. As one post highlighted, the allure is less about anticipated returns and more about “trading money for freedom.”

European real estate was noted as another asset class that provides easier pathways to residency or citizenship for significantly lower investments, showcasing property as a means of mobility rather than status. Luxury housing in mainland China, on the other hand, was criticized for lacking both robust returns and flexibility.

Some investors drew comparisons between the current housing market and China’s A-share equities. They argued that domestic assets typically decline during geopolitical tensions but struggle to recover when global markets rebound significantly.

Real estate, particularly in Shenzhen Bay, seems to exemplify this inconsistency. It suffers during economic downturns while remaining stagnant during times of market optimism.

The implications of this shift extend beyond real estate. Cryptocurrency is now being viewed not just as a speculative investment but as a strategic asset for preserving capital and gaining flexibility.

Younger investors, who often find themselves priced out of the luxury housing market, are exploring alternatives. They are increasingly choosing digital assets and international equities, which provide clearer risk profiles and easier access.

Reevaluating luxury real estate in comparison to Bitcoin and global equities marks a crucial change in how Chinese individuals manage their wealth. As mobility of capital becomes increasingly essential and regulatory scrutiny heightens, liquid global assets are steadily replacing property as the main conduit for value preservation.

How regulators react to these changes and whether property prices stabilize could significantly impact domestic markets in China. This shift may also determine the next wave of cryptocurrency adoption within the country.