Our Guide on Renting or Buying a Home in Hong Kong

Jump right in:

• Renting accommodation in Hong Kong
• How to find an apartment in Hong Kong?
• Rental process & rules
• Short-term rentals
• Buying a property as a foreigner
• Popular areas for expats in Hong Kong
• The process & steps of buying property in Hong Kong
• Utilities
• Internet & mobile phones

Renting accommodation in Hong Kong

Accommodation in Hong Kong is extremely competitive, so renting a house or an apartment can be rather pricy. This is especially noticeable in Kowloon, where the population density is the highest.

When renting you can usually choose between a standard or serviced apartment (furnished and includes utilities and other commodities, e.g.: gym), the latter generally being on the pricier side. Standard apartments usually come unfurnished or partly furnished. Deposits are typically one to two month’s rent.

On the upside, most apartments even compact ones are highly functional and efficiently designed. Older buildings are often renovated to offer their tenants the same comfort as new housing developments.

How to find an apartment in Hong Kong?

When searching for an apartment in Hong Kong, you have two primary options for your search:

Online

If you do decide on renting in Hong Kong, you can start by searching for a place online or having a look at the classifieds section of the local newspaper. That way you will be able to deal with the owner directly. Popular websites for finding accommodation in Hong Kong include:

• 28Hse
• Asiaxpat
• Craigslist
• Squarefoot

Estate agent

The other option is hiring a licensed estate agent. For a foreigner who is renting in Hong Kong, this will probably be the better choice if you are unfamiliar with Hong Kong’s housing market and not fluent in Chinese/Cantonese. Make sure to clarify all details with your estate agent beforehand, such as your preferences and needs as well as the agent’s commission and the time of payment. Websites featuring property listings along with estate agent contact details include:

• Spacious
• Property.hk
• Hong Kong Homes

Check the land registry

No matter whether you decide to look for a place on your own or to hire someone who specializes in renting in Hong Kong, make sure to search the land registry for information on the property you are about to rent. Check if there is a mortgage on the property or not and whether the mortgagee has agreed to lease the place. If you rent the property without the mortgagee’s consent, you run the risk of being evicted on short notice.

Things to know when renting in Hong Kong

• If something seems untrustworthy about a property or landlord, you can always hire a lawyer to investigate the offer for you. Expats are often subject to fraud as they are unfamiliar with local customs and the usual procedure for renting in Hong Kong.
• If you are searching for a place online, try to do some research on the landlord. If other expats had a bad experience with this person, they might have shared their experiences in blogs, reddit, Facebook groups or on expat forums.
• Always insist on looking at the apartment or house before you sign anything or pay a deposit. Do not rely on pictures only because they can be misleading.
• Although it may be nice to have a place to live right when you arrive in Hong Kong, it is always safer to meet with the landlord and to visit the apartment in person. In this way, you will have a good idea of what you might be getting into if you sign the tenancy agreement.
• As a general rule of thumb, if something does not feel right, do not sign the lease.

How much is rent in Hong Kong?

Hong Kong is notorious for its housing prices. The lack of available space and the high number of inhabitants make the Hong Kong housing market very competitive and average rent prices very high.

The minimum rent in Hong Kong is about 15,000 HKD (approx. 1,930 USD) per month for a simple one-bedroom apartment further away from the center. If you wish to live closer to the center or rent a bigger place with more amenities expect to pay at least 20,000­–50,000 HKD (2,570­–5,150 USD) per month and more.

Rental process & rules

Once you or your realtor find a place you like, you can begin the negotiations with the landlord. The steps to secure your apartment are as follows:

Step 1: Negotiate terms Once you or your realtor finds a suitable place, begin negotiations with the landlord. Discuss key terms including:

• Length of tenancy
• Responsibility for utility bill payments
• Other rental conditions

Step 2: Sign the provisional tenancy agreement (if using a real estate agent). Review and sign the provisional agreement with your agent.

Step 3: Review and amend the contract Both you and your landlord's solicitors review the contract and make any necessary amendments that suit both parties.

Step 4: Finalize the rental

• Pay the deposit
• Sign the formal tenancy agreement
• Landlord signs the agreement
• Landlord completes the letting notice (Form CR 109)

The rental process differs if you go through it without a real estate agent. However, the requirements and documents needed for renting are, in most cases, the same.

What is stamp duty?

Stamp duty is the sort of payment that legally approves the signed contract. Once your rental document is signed, it needs to be stamped within the next 30 days. Stamp duty fee is usually split between the landlord and the tenant.

Stamp duty rates

When calculating yearly average rent, you have to round it up to the nearest 100 HKD (approx. 13 USD. For example: The monthly rent of an apartment is 15,000 HKD (approx. 1,930 USD), the lease to the apartment is for 8 months, so the rate is 0.25% of the total rent.

• Total rent = 15,000 x 8 months = 120,000 HKD (approx. 15,410USD)
• Stamp duty = 0.25% x 120,000 = 30,000 HKD (approx. 3,850)

Your total rent payments would be 150,000 HKD (approx. 19,260 USD)

Duplicates of the stamp duty document cost 5 HKD (approx. 0.62 USD).

What to expect from rental contracts in Hong Kong?

Tenancy agreements are usually limited to two or three years and are renewed if you and your landlord want to continue the tenancy. In some cases, you can also terminate the contract with one to three months’ written notice.

Read through the tenancy agreement thoroughly before signing and familiarize yourself with the common rights and duties of a tenant. Also, note that Hong Kong’s government applies extra taxes on all the properties, including rentals. Make sure to clarify whether those taxes are included in the price or if it is something you have to pay on top of your rent.

If your landlord sells the property

Your landlord might decide to sell the property you are renting during your stay. However, you do not need to worry. In these cases, your tenancy agreement will usually still be valid, and you will be able to stay in the apartment under the same conditions. You should, however, try to find out if the old or the new owner is responsible for you as a tenant.

Are utilities included?

Renting in Hong Kong is not always all-inclusive. As a tenant, you are responsible for connecting utility services yourself. More on that further on in this section.

Read through Hong Kong’s tenancy legislation to make sure your contract complies with the common rules. The government’s project Tenancy Matters provides free assistance to tenants that need guidance, so contact them if you have any questions.

Short-term rentals

It’s best to arrange a short-term rental before moving to Hong Kong, as long-term apartments often look different in person than online. Once you arrive, you can visit properties and find a permanent place that suits you.

The average price for rentals depends on the area and size of the room you need. For a small one-bedroom apartment can be anything from 8,000 to 28,000 HKD (approx. 1,030 to 3,600 USD) per month. Taking a quick look online should give you a good idea of what you should expect from the temporary rentals of your preference. Most of the time, monthly short rentals are furnished, fully serviced apartments. Some websites where you can find short-term rentals include:

• Home-to-go
• The square
• Cozy cozy
• Habyt
• Airbnb

Usually, you do not need any specific documents to sign a short-term lease; proof of ID is often sufficient enough.

Buying a property as a foreigner

Property prices are on the rise in Hong Kong so, as long as you have money, you should not worry too much about how to buy the house of your dreams. But it is important to note that properties in HK are expensive and only a few expats purchase properties.

The process is usually not too complicated. And while being a citizen or a permanent resident of Hong Kong makes it even easier, you do not need to be one if you wish to purchase real estate.

Note that you will not get permanent residency, citizenship, or other visa-related preferences if you buy property in Hong Kong.

The requirements for property buying in Hong Kong

Just like everywhere else in China, one cannot technically buy property in Hong Kong as the government owns it all. However, it can be leased for 50 years.This means that, in addition to the purchase price, you will need to pay an annual government rent equal to 3% of the property’s rateable value. While the rateable value may be adjusted each year, the 3% rate remains fixed. Your lease can also be extended for another 50 years when they expire provided, they meet standard conditions.

How much do properties in Hong Kong cost?

Prices for Hong Kong property can range from 130,000 to 180,000 HKD (16,700–23,160 USD) per square foot and more, depending on the size, the type of property, number of bedrooms, and the district where the property’s location.

Average price ranges of properties according to each district:

Popular areas for expats in Hong Kong

Hong Kong Island

• Central: Central is very popular among younger, single expats who are drawn to its lively nightlife. However, the area offers limited living space
• Tai Hang and Mid-Levels East: These neighborhoods have numerous international and multinational schools, making them attractive to expat families.
• Repulse bay: A significant number of expats choose this area for its more spacious, upscale environment.
• South Hong Kong Island and Discovery Bay: Preferred by families with young children. A three-bedroom apartment typically costs around 60,000 HKD (7,700 USD) per month, though prices can be higher.

Other popular towns:

• Sai Kung
• Sha Tin
• Tai Po

Most expensive areas

• Victoria Peak (The Peak): The most expensive and beautiful area in Hong Kong, price per square foot is 70,000+ HKD (approx. 9,000+ USD).
• Mid-Levels: Central location with great nightlife and high-quality housing. Price per square foot is 20,000–40,000 HKD (approx. 2,570–5,130 USD)

Most affordable areas

Kowloon: Kowloon is one of the most densely populated residential areas in the world, which limits the availability of spacious housing. Many expats seeking more affordable rent choose to settle here despite the density. Other affordable areas and their prices per square foot include:

• Tai Po: 10,000–15,000 HKD (approx. 1,280–1,930 USD)
• Yuen Long: 10,000–15,000 HKD (approx. 1,280–1,930 USD)
• Tuen Mun: 6,000–13,000 HKD (approx. 770–1,700 USD)
• Northern district: 7,000–13,000 HKD (approx. 900–1,700 USD)
• Lantau and Lamma Island: 8,000 HKD (approx. 1,030 USD)

Where to buy property in Hong Kong?

You can find properties in Hong Kong through real estate agency websites such as:

• Okay.com
• Spacious
• Property.hk
• Midland Realty
• Hong Kong Homes
• Savilis Hong Kong
• Centaline property

The process & steps of buying property in Hong Kong

For the buying process to go smoothly, you will have to hire a solicitor a Hong Kong law firm as they are the ones handling the documents and legal interactions with all the other parties.

After you settle on a property that your real estate agent helps you find, you will come in contact with the vendor of the property. Then you will be able to negotiate the deal and after, sign a provisional purchase agreement.

Provisional purchase agreement

A provisional purchase agreement usually includes:

• the address
• the price of the property
• your personal details
• initial
• further deposits

The date and the amount you should pay upon the completion of the purchase. This agreement is signed first after reaching a preliminary agreement on terms. It should also clarify who is paying for the legal expenses, the commission you have to pay for the real estate agent, and the consequences of breaching the agreement.

Formal purchase agreement

The agreement is reviewed by both parties’ solicitors, with the vendor’s solicitor drafting the formal purchase contract based on the provisional agreement and any added conditions. After signing, you pay a further deposit (about 10% of the purchase price). If either party breaches the contract, legal action can be taken. Once signed, the purchaser is responsible for the property, so immediate insurance is advised. After final payments, ownership documents are transferred to the purchaser or the bank if there is a mortgage.

Some other factors to consider when purchasing property in Hong Kong are:

Ad Valorem Stamp Duty

The Ad Valorem Stamp Duty (AVD) is a tax calculated on a progressive scale based on the property’s value and is payable by all buyers.

For example, a property valued at 6 million HKD (770,520 USD) would be taxed at a rate of 2.5%, resulting in a tax of 135,000 HKD (17,340 USD).

Keep in mind that most types of sale-able properties in Hong Kong (over 90%) are classified as small/medium units that are under 100 square meters. The chance of finding a house bigger than that are slim unless you are ready to pay a steep price.

Mortgage loans in Hong Kong

Applying for a mortgage in Hong Kong is generally straightforward even for expats as banks focus more on your financial stability and debt-to-income ratio than your nationality. However, banks typically do not finance the entire purchase price.

The standard maximum loan-to-value (LTV) ratio for residential properties is now 70%. This means expats would be expected to cover 30% of the cost. For eligible borrowers, such as first-time buyers purchasing properties below certain price thresholds, the Mortgage Insurance Programme (MIP) allows LTV ratios of up to 90% but this is only available to buyers with Hong Kong passport.

Documents required when applying for a mortgage usually include:

• Hong Kong ID or passport
• Latest bank statements
• Proof of income
• Formal or Provisional Purchase agreement

Utilities

As a tenant or homeowner in Hong Kong, you are responsible for contacting the utility companies and arranging the services in your home. Hardly any landlord will get involved in providing your house or flat with all necessary utilities. Serviced apartments are the sole exception to this rule.

Power Supply

In Hong Kong, different providers handle different utilities, so you’ll need to contact each one separately to set up services before moving in. Fortunately, there are only a few providers, making the process relatively straightforward.

Two companies are responsible for the power supply in Hong Kong:

• HK Electric Investments is responsible for Hong Kong Island and Lamma Island, and The China Light
• Power Company (CLP) provides Kowloon, the New Territories, Cheung Chau, and Lantau with electricity

Before you can get connected, you have to pay a deposit of two months’ fees up front. In some cases, your landlord may have already paid the deposit, and you can begin with the monthly payments. The bills come monthly or every two months.

Gas and Water Supply

The Towngas network supplies most of Hong Kong with gas for cooking and heating. Opening a gas account requires to pay a deposit and the bills come every two months. Although most neighbourhoods are well connected to the gas supply system, older apartments (especially in the New Territories and the outlying islands) may not be connected. There you can use bottled gas instead.

The Water Supplies Department is responsible for providing your place with water. The bill is usually rather low and only paid quarterly.

Typical documents required to set up utilities

When setting up utilities in Hong Kong you most likely will need to have your Hong Kong ID. In most cases you will also need to fill in an application form online or in person.

Other useful things to know about utilities

• What is the quality of the local tap water?

Hong Kong’s drinking water is considered one of the safest in the world and meets World Health Organization standards. However, tap water quality at home can be affected by old plumbing or rusty pipes. It’s advisable to have your tap water checked and notify your landlord or building management if you suspect issues with internal plumbing.

• How do you dispose of your waste?

In an attempt at damage control, the government has introduced many waste reduction and recycling programs. Building management and landlords are encouraged to provide waste separation bins.

Internet & TV

Hong Kong offers fast, reliable internet with wide coverage and competitive prices, thanks to major investment in broadband infrastructure. Additionally, the public internet connection GovWiFi is known to be quite reliable.

GovWiFi

GovWiFi is a program providing free public internet across Hong Kong, with around 3,000 hotspots at 600 locations, including the airport, government buildings, libraries, hotels, parks, and tourist sites. Many buses, ferries, and other public transport options also offer free Wi-Fi.

How to get internet service in Hong Kong?

Many landline and cell phone companies offer internet services or all-inclusive packages allowing you to get internet and mobile and fixed-line telephone services at once. You need a Hong Kong ID card or your passport and proof of residence to sign up. Some of the popular providers include:

• Netvigator (PCCW)
• Hong Kong Broadband
• HKNeT
• HGC Broadband

Make sure to shop around for the right offer as costs will vary between different providers as well as different internet packages and speeds. Many providers also bundle broadband access with other offers at reduced prices.

Luckily, the Office of the Communications Authority (OFCA) makes comparing telecom options easy by providing a database of all reported tariffs. You can quickly compare prices and services from all providers, though you may miss out on special promotions not listed there.

How to get a mobile phone number in Hong Kong?

Hong Kong mobile phone service providers operate in a completely liberalized and competitive market, which means that market forces determine fees and charges. Try to figure out beforehand what you will need your cell phone for and which services for you are planning to use. Some carriers provide special bundles for families and expats.

The prices vary depending on the mobile plan you choose with most of them starting at around 150 80 HKD (20 approx. 10.30 USD) per month. Many providers also offer internet and landline services, which might be the most cost-effective deal. Some carriers provide special bundles for families and expats as well.

Mobile phone companies in Hong Kong

There are four main Hong Kong mobile phone service providers, which offer different services, rates, and phones.

• China Mobile Hong Kong
• 3 Hong Kong
• SmarTone
• CSL Limited HKT (Hong Kong telecoms)

These licensed providers offer 4G mobile services in Hong Kong, including internet, TV, and multimedia features. Several Mobile Virtual Network Operators (MVNOs) also provide mobile services. Most providers offer prepaid SIM cards, which are ideal for occasional use and cost anywhere from 50 HKD (approx. 6.40 USD), and are widely available.

Watching TV in Hong Kong

TV in Hong Kong is most commonly broadcasted in English and Cantonese. Satellite television is not popular there, but you can choose between cable, broadband, and terrestrial (TV receiver with antenna) or opt for an IPTV box. Digital television is the most popular broadcasting option.

Paid streaming services like Now TV and myTV SUPER are popular in Hong Kong, offering a wide range of local and international entertainment options. Other global platforms such as Amazon Prime, Netflix, and Disney+ could provide access to content from your home country.