Real Estate in Hong Kong

Buying a property in Hong Kong or Macao is not a problem. But finding the money to pay for it might be.

While there is no problem buying a property in Hong Kong, you may have problems arranging a local mortgage. Prices are sky high due to the fact that there is very little property on the open market, and what is there will be squeezed up to crazy prices - sellers are there but at a price. Nearly half of Hong Kong’s residents live in government housing, which has taken some potential buyers out of an already over heated market, and also used up property which may have entered the commercial property market at some stage.

The Hong Kong system of property transactions is based on the UK version (another example of past British rule) with costs including :-

A Deposit of 5% payable on agreement in principle, and another 5% two weeks later.

Broker fees of between 0.5% and 1% of the price.

Lawyers fees, generally in the region of $6,000.

Stamp duty, anywhere between 0.75% and 3.75% of the purchase price.

For those able to arrange a mortgage, they generally cover only 70% of the property price, with the balance to be raised from elsewhere.