Hong Kong Real Estate

Hong Kong Real Estate? It is one of the fast-rising metropolitan cities in Asia, making it the target area for many mainland Chinese who come to work in the various sectors in the city, including the banking, law, and finance industries. Composed of over 250 islands, the city was formerly a British colony. Now, Hong Kong is deemed as the center of Asia, making the tourist activities rise to a substantial level and making the city a point of entry for China.

Among the numerous challenges that fall on people that are new comers to the city is finding the right accommodation in the course of their stay in Hong Kong. It can be rather difficult coming to a place exactly where you do not understand the local language and have any idea on the housing regulations and laws. In this post, expatriates coming to Hong Kong will get an concept on discovering the proper kind of areas that will make their stay in the city suitable and pleasant.

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Firstly, what sorts of apartments are available? Actually, there are lots of kinds of accommodations available, however it all depends on how long you might be planning to stay in the city, whether short-term or long-term.

Serviced Apartments

These apartments are typically targeted to corporate travelers who are looking to stay in Hong Kong for less than a year. The usual minimal lease is 1 month, and you have to additionally pay a 1-month deposit on the lease. The payment for the month-to-month stay already includes maid service, Internet connection, and linens for the bed. You can also get the apartment cleaned everyday or on a weekly basis. The downside of these sorts of apartments is the fact that they are typically tiny and are fairly pricey, especially that they’re generally targeted for people from the corporate world.

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Old Hong Kong Real Estate

These generally exist in the older suburbs like Sheung Wan and Sai Wan (the suburbs to the east of Central) and are buildings generally over 30 years old. The apartments that you can locate in these locations generally have huge spaces, but with their old age, the exterior may not be that appealing any longer, and if you’re planning to buy one of these apartments, you may have a difficult time convincing the bank to give you a loan.

New Hong Kong Real Estate

Space is definitely an asset in Hong Kong given the higher density. But, these past few years, there have already been several new developments in the real estate sector of the city. New apartments might cost quite a fortune particularly that Hong Kong properties are at present highly valued in the market. Whenever you purchase or rent a new apartment, you should expect paying a premium. These apartments are nice, new, and have much better finishing compared to the ones you can find in the older suburbs. Nonetheless, the space efficiency of newer apartments tend to be a great deal lower.

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So when you have decided on an apartment, how do you go about renting it?

The following are a few of the FAQs and important things that you need to know when renting an apartment.

When looking for an apartment, it really is best to seek the help of a real estate agent. You may spend an additional quantity for the commission (half of the commission for the agent is provided by the renter and the other half is supplied by the landlord) but hong kong apartments agents generally have a lot more understanding concerning the various available apartments in the city. Nevertheless, Hong Kong is different to the West, when you sign the lease you typically deal directly with the landlord instead of an agent. So any troubles such as structural problems with apartment, fixes to air conditioning units, etc. have to be taken up directly with the landlord.

Agreement on the Lease and the Duration. In Hong Kong, the lease typically goes on for two years with a 1-year break clause. This implies that right after the 1 year and 1 month (13 months) period, both the landlord and the renter can decide whether to terminate the lease agreement. Each party can negotiate their own terms and change this standard format if required. And, in cases when you want to terminate your lease, you will need to supply a notice 2 months just before your planned leave.

Size of the apartment. In Hong Kong, the sizes of the apartments are quoted in gross and net. Gross indicates the total apartment size such as common area space allocated to your apartment (i.e. portions of the lift, window sill, fitness center etc). The net size refers to the actual size of the apartment. The latter is generally what is essential when determining apartment size.

Stamp Duty. In case you are planning to buy an apartment in Hong Kong, you need to be aware of the stamp duty charges that come with it. Hong Kong has lots of laws governing this and over the recent years, it has gotten extremely complicated. First, you need to spend for the normal stamp duty which ranges from 1% to 7%. Just not too long ago, the Hong Kong government introduced the foreigner stamp duty for 15%, that is targeted for non-local residents trying to purchase a house within the city. On top of that, there’s what’s referred to as a special stamp duty. If you sell your house in 2 years’ time, you have to pay an extra 15% tax from the sale you acquired.

So the worst case is you can be paying as much as 37% tax if you’re a foreigner who buys and sells property in a short space of time. The purpose behind these aggressive tax measures is to fix the recent property issues in Hong Kong, which resulted when mainland Chinese bought apartments in the city. I wish you all of the best in your search for a fantastic property in Hong Kong!

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