Local property market in Hong Kong

The usual practice is to rent a home through a rental agent who will negotiate the rent and be able to advise the client on the terms of the tenancy agreement. The usual agent’s fee for finding a property to lease is half a month’s rental. 

Space in Hong Kong is a luxury and because of this, rental levels are extremely high. Most people live in high-rise apartments which are often small and compact in size. Private condominiums with estate management facilities are one of the most common types of residences in Hong Kong. Farther away from the city, there are also houses in areas like Clearwater Bay and Discovery Bay.

Expats in Hong Kong usually rent accommodation because of the high costs of buying a place and the volatility of the property market. The city’s housing market is ranked to be one of the most expensive compared to 87 major neighbouring metropolitan areas. Despite its unaffordability, Hong Kong still continues to increase housing supply because of the huge demand for real estate.

Renting

Expat employers often assist expats relocating to Hong Kong. Some companies even provide long-term housing arrangements and benefit for their employees.

Additional costs will include the stamp duty, government rates and rents which are usually included in the rental and management fees for the apartment building which will vary according to the facilities in the compound and may be included in the rental. The management fee is payable by all occupants. 

The Hong Kong government imposes a form of property tax on leased accommodation. The amount payable is approximately 5.5% of the annual rental. Properties in individual districts (parts of the New Territories and the outlying islands) are also subjected to government land rent which is about 3% of the assessed value of the property. The tenant is responsible for paying these charges every quarterly.

Do note also that the tenant will be responsible for paying his own utilities bills (gas, water and electricity).