Hong Kong (HK)
Hong Kong is one of the world's most dynamic cities — a Special Administrative Region (SAR) of China operating under the 'One Country, Two Systems' framework that preserves its common law legal system, independent judiciary, free port status, and separate currency.
Buying Property in Hong Kong
The full buying process, transaction costs, mortgage, and legal requirements.
Hong Kong's property market is one of the most expensive in the world. Residential property prices in the urban core (HK Island, Kowloon) typically range from HK$12,000–20,000 per square foot. A 500 sqft (46 sqm) apartment in Wan Chai might cost HK$6,000,000–10,000,000. From February 28, 2024, the government abolished all property cooling measures that had been in place since 2010: the Buyer's Stamp Duty (BSD — formerly an additional 15% for non-HKPR buyers), the New Residential Stamp Duty (NRSD), and the Special Stamp Duty (SSD — for short-term reselling). Only the basic Ad Valorem Duty (AVD) now applies to all buyers. This has made Hong Kong property significantly more accessible to foreigners.
Rent vs. Buy
Rent vs buy in HK: rental yields are typically 2–3% (low), meaning property prices are approximately 33–50× annual rent. Buying makes mathematical sense only for a long-term hold (7+ years) or strong belief in future appreciation. The abolition of cooling measures in Feb 2024 reduced the purchase cost for foreigners by 15 percentage points (no more BSD). Mortgage interest rates were elevated in 2023–2024 (HKMA-linked to US Fed) but have eased in 2025–2026 as the Fed cut rates. For expats on an Employment Visa: foreign buyers can obtain mortgages (max 60% LTV for non-HKPR) — similar to HKPR but with slightly lower LTV cap.
Buying Process — Step by Step
Research and Property Search
1–12 weeksEngage a licensed estate agent (EAA-licensed). Search via Spacious.hk, Squarefoot.com.hk, Centaline, Midland. Visit properties — expect intense competition in popular areas. Research recent transaction prices via the Land Registry (free online search at landreg.gov.hk).
Make an Offer
1–3 daysMake a verbal offer through your estate agent. If accepted, proceed to the Preliminary Agreement.
Sign Preliminary Agreement for Sale and Purchase (PASP)
1–3 days after offer acceptedThe PASP is a binding contract. Pay the initial deposit of 3–5% of purchase price (typically HK$100,000–500,000 or 3–5%). This deposit is forfeited if you back out — buyer beware. The seller is also bound. Stamp duty on PASP not separately payable (covered in formal Agreement below).
Engage a Solicitor
Immediately after PASPYou must appoint a solicitor (conveyancing solicitor) to conduct legal due diligence (title search, incumbrances, deed check). The Law Society of HK maintains a list of conveyancing practitioners. Costs: HK$10,000–30,000 per transaction.
Formal Agreement for Sale and Purchase (FASP)
Within 14 days of PASPThe formal binding sale contract, executed within 14 days of PASP (or as agreed). At this stage, the buyer pays a further deposit to bring total deposit to typically 10% of purchase price. The FASP is submitted for stamp duty assessment.
Stamp Duty Payment
Within 30 days of FASPPay the Ad Valorem Duty (AVD) to the Inland Revenue Department within 30 days of the date of the agreement (for HK property). Rate is based on purchase price. For properties under HK$3M: 1.5%. For HK$3M–4.5M: 2.25%. For HK$4.5M–6M: 3%. For HK$6M–9M: 3.75%. For HK$9M–21.739M: 4.25%. Above HK$21.739M: 8.5%.
Mortgage Application
Simultaneously with FASP negotiation — obtain pre-approval firstIf financing with a mortgage, apply to a bank. LTV limits for private residential properties: HKPR and non-HKPR buyers now face the same HKMA limits — typically 60% LTV for properties above HK$10M (first property), 50% for second property. Stress test: borrower must demonstrate ability to repay at HIBOR + 3%. Pre-approval from bank recommended before making an offer.
Completion
14–30 days after FASPCompletion date is typically 14–30 days after formal agreement (for residential). Both parties' solicitors handle the transfer of funds and title. Keys handed over. Final balance paid. Buyer registers the property at the Land Registry (solicitor handles this).
Transaction Costs
| Cost Item | Amount | Notes |
|---|---|---|
| Ad Valorem Duty (AVD) — stamp duty | 1.5% (under HK$3M) to 8.5% (above HK$21.739M) | Scale rates — the rate applies to the entire price, not a progressive bracket. Payable within 30 days of agreement. |
| Solicitor's fees (conveyancing) | HK$10,000–30,000 | Buyer pays own solicitor. Negotiate a fixed fee rather than a percentage. Additional fees for title registration at Land Registry: HK$1,000–5,000. |
| Estate agent commission | 1% of purchase price (typically, paid by seller but sometimes negotiated) | In HK, it is conventional for the seller to pay the agent's commission. However, some buyer agents charge a 0.5–1% fee to the buyer. Clarify upfront. |
| Mortgage application fee | HK$2,000–8,000 | Varies by lender. Some waive for Premier/Premier customers. |
| Mortgage valuation fee | HK$2,000–5,000 | Bank requires an independent property valuation. Paid by borrower. |
| Building inspection / survey | HK$3,000–8,000 | Optional but strongly recommended for older buildings. A licensed surveyor (HKIS member) inspects the structural condition, common areas, and identifies potential renovation costs. |
| Government rates and rents (first quarter) | 5% of assessed rateable value per quarter (buyer's first quarter may be apportioned) | Government Rates (差餉) and Crown Rent (地租) are ongoing annual government charges on property occupiers/owners. Rates bill arrives quarterly from the Rating and Valuation Department. |
The Notary — Mandatory for All Purchases
Hong Kong does not use the civil law notary system (as in Germany, France, etc.). Conveyancing in HK is handled by solicitors (common law lawyers). Both buyer and seller appoint their own solicitors. The buyer's solicitor: conducts title search, reviews the sale agreement, manages stamp duty, handles completion. The seller's solicitor: prepares the FASP, handles discharge of any existing mortgage. There is no equivalent of the German Notar as a compulsory neutral party — both sets of solicitors handle their clients' interests.
Mortgage
Hong Kong mortgage rates are typically linked to HIBOR (Hong Kong Interbank Offered Rate) or the bank's Best Lending Rate (BLR/P-rate). After the US Federal Reserve rate cuts in 2025, HIBOR-linked mortgage rates have eased to approximately 3–5% (2026). Most mortgages are structured as: HIBOR + 1.3–1.5% (floating) with a cap at P-2.5% to P-3% (where P is the bank's prime rate, currently approximately 5.875%). Most borrowers choose 25-year terms. Maximum LTV for first residential property (HKPR and non-HKPR): 80% (under HK$10M) or 60% (above HK$10M) subject to HKMA rules and stress test.
For a HK$6,000,000 property under HK$10M: minimum 20% deposit = HK$1,200,000. Plus stamp duty and fees: approximately 2–4% of purchase price = HK$120,000–240,000. Total cash required: HK$1,320,000–1,440,000+ for a HK$6M property.
Foreign buyers (non-HKPR) can obtain mortgages from HK-licensed banks. The key requirement is demonstrating repayment capacity in HK (income in HKD or equivalent). LTV caps are the same as for HKPR since Feb 2024 (HKMA confirmed equal treatment). Many banks will assess foreign income for mortgage affordability — bring payslips and employment confirmation. HSBC, Standard Chartered, and Hang Seng are the most active in providing mortgages to expats.
Land Registry
The Land Registry of Hong Kong (landreg.gov.hk) maintains all property title records publicly. Title searches are free online or via a small fee for a certified land search (approximately HK$125). Your solicitor will conduct a full title search before completion. After completion, the new title must be registered with the Land Registry within the stamping period to be binding against third parties.
Taxes
Property tax in HK: Property Tax (物業稅) at 15% of net assessable value (rental income less 20% standard deduction for repairs and maintenance). If the owner-occupies the property: no property tax. If renting out: Property Tax at 15% on 80% of gross rent. No capital gains tax on property disposal — this is a significant advantage (sale profits are not taxed, except if the IRD determines the activity constitutes a business — professional property traders may be subject to profits tax). Government Rates (差餉): quarterly charge on occupiers at 5% of annual rateable value. Crown Rent / Government Rent: 3% of rateable value per year for most New Territories leasehold properties.
New Build vs. Existing Property
New builds (first-hand residential properties) are regulated by the Residential Properties (First-hand Sales) Ordinance. Developers must provide a Formal Price List and Sales Brochure. Flat sizes are quoted in saleable area (實用面積) which excludes common area — this was mandated after developers were quoting inflated gross floor area figures. Existing (second-hand) properties: priced in gross floor area historically but increasingly quoted in saleable area post-2013. For new builds: register interest in a sales office and enter a ballot system for popular projects. Payment terms: typically 80% deferred payment (30 days to completion) or 5% at contract + 95% at completion.
Selling Property
No capital gains tax on disposal. However, former BSD (15% for non-HKPR buyers selling to non-HKPR buyers) has been abolished. No Special Stamp Duty (SSD — formerly 10–20% for properties sold within 3 years) since Feb 2024. Only basic stamp duty applies on resale at the applicable AVD rate from the buyer. Consider: agent commission 1%, solicitor fees on sale, and Property Tax consequences if the property was rented out.
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