Hong Kong’s property market is world-famous — and not always in a good way. It’s one of the most expensive housing markets on the planet, with prices averaging around HK$10 million (about USD 1.3 million) for a modest apartment. That’s nearly 18 times the median annual income.
Still, despite sky-high costs, many expats are drawn to investing in real estate here. Why? Because the market, while volatile, tends to rebound — and after a few years of decline, experts are predicting a slow recovery.
If you're thinking about putting down roots in Hong Kong, here's a quick guide to help you navigate the buying process — and some things to keep in mind before signing on the dotted line.
Yes — foreigners are allowed to purchase property in Hong Kong. There are no restrictions, and expats can even apply for mortgages. However, getting approved for a mortgage as a non-resident can be challenging unless you’ve built a strong financial history in the city.
Also, be prepared for extra costs. As a non-permanent resident, you’ll be charged a hefty Buyer Stamp Duty (BSD) of 15% on your purchase. This can make a big difference in your upfront investment.
Be prepared for extra costs. As a non-permanent resident, you’ll be charged a hefty Buyer Stamp Duty (BSD) of 15% on your purchase. This can make a big difference in your upfront investment.
1. Location and Budget
Prices vary dramatically by neighborhood. Central and Island districts command premium prices, while areas like the New Territories offer more affordable options. Also factor in the building’s age — some banks won’t lend for properties over 60 years old.
2. Legal Support
Hiring a solicitor who understands Hong Kong property law is essential. They’ll guide you through contracts, due diligence, and make sure you’re protected.
3. Real Estate Agent
An experienced local agent will help you find a suitable property, handle negotiations, and ensure you're not overpaying.
Step 1: Find Your Property
Use a real estate agent to save time and access listings you might not find on your own. Major agencies like Century 21, Midland Realty, and Nest Property are well-established.
Step 2: Get Financing
If you're planning to take out a mortgage, gather all necessary documents: proof of income, bank statements, employer references, and your HKID or passport. Banks typically lend up to 70% of the property’s value — though some government-backed programs can cover up to 90%.
Step 3: Make an Offer
Once you find the right home, your agent will help you negotiate with the seller. You’ll agree on a price and purchase conditions, then move on to the provisional agreement stage.
Step 4: Sign the Provisional Agreement
This is a legally binding document, usually accompanied by a deposit of 3–5%. Always have your lawyer review it before signing.
Step 5: Finalize the Sale
Within two weeks, you’ll sign the formal Sale and Purchase Agreement. Expect to pay another 5–10% as a deposit. Your lawyer will then confirm there are no legal issues with the property, and the bank will release the mortgage funds.
Renting is still the most popular option for newcomers and even long-time expats. While prices are high — studios often start at HK$10,000/month — it’s a more flexible solution if you're unsure about long-term plans.
If you're settling down in Hong Kong — whether buying or renting — don’t overlook your health insurance. As exciting as it is to make a big move or property investment, safeguarding your health is just as important.
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