If you’re looking to buy property in Hong Kong, you may know that it is the most expensive market in the world. Hong Kong’s economic vibrancy and location make owning property worth the high price tag. For the right person, this is an opportunity like no other.
This guide is here to give you a quick look at the Hong Kong real estate market so you can decide if buying property is in your future.
Ready to learn more? Let’s get started.
Can Foreigners Purchase Hong Kong Property?
In 1997, the British gave control of Hong Kong back to China. One of the conditions was that all the land would need to be on a lease for 50 years. This means that, technically, there is no freehold land in Hong Kong.
Since all plots are leasehold, foreigners get to enjoy the same ownership rights as locals when they’re buying property in Hong Kong. It’s important to remember that you don’t actually own your asset; you’re just on a long-term lease.
How Much Are the Property Taxes?
Unfortunately, Hong Kong property taxes are quite expensive, especially when you compare them to other markets in Asia. Taxes are payable while transferring your apartment or renting property.
Since the real estate is bought and sold on a leasehold basis, you do not have to pay annual taxes on it if there’s no income being made off it. With that said, there is a 15% tax on any property’s rental income if you’re constantly renting it out.
You can assume that a deduction for maintenance applies, and it’s around 20%. This means that the taxes paid on rental income is around 12%
The amount you’ll pay on property tax rates in Hong Kong depend on whether you’re a permanent resident or foreign, so keep this in mind if you want to live in Hong Kong.
You can take a look at some different Hong Kong apartment options by visiting https://www.property852.com/.
Best Areas and Neighborhoods
Hong Kong is a large city-state, and there is not necessarily an area that is ‘cheap’. With that said, there are a variety of neighborhoods that each have their own pros and cons. You’ll want to consider the transport system when buying Hong Kong property.
The transport system is one of the best in the world, and it is crucial to have easy access to it.
The further you get from the central business areas, the lower real estate prices become. If you understand the way this particular market works, you’ll be able to find a reasonably priced property that is sure to please.
Understanding the Hong Kong Real Estate Market
When it comes to buying property, the three things you need to remember are location, location, location. This determines the value over anything else, and nothing solidifies a price tag like the city property is located in. Navigating the Hong Kong real estate market is all about understanding what sets it apart from the rest.
Whether you’re moving to Hong Kong or not, buying property is a huge investment. Being informed about the market will help you make the most informed decision.
Looking for more articles like this? Be sure to check out the real estate section of our blog!