Accommodation in Hong Kong
Accommodation in Hong Kong is expensive; in 2011 it was appointed the third most costly real estate rental market in the world (just behind Moscow and Tokyo).
Furthermore, expats moving to the island will find that most housing is in the form of apartments, and most apartments are much smaller than the living space foreigners may be used to. Some companies provide employees with housing allowances, a perk that expats should certainly try and negotiate if possible.
Prices can range from about 12,000 HKD per month for a tiny (50m²) apartment to 80,000 HKD or more per month for a luxurious home in an up market area.
►Average monthly rent for a two-bedroom apartment in 2011 was 2,830 USD (ECA International Survey)
Expats living farther from the central business district (CBD) will pay cheaper rent, but will have a longer commute to work. The good news is that the public transportation system in Hong Kong nearly comprehensively, connecting residential areas with the CBD.
There are a variety of areas and suburbs in Hong Kong to choose from; expats should take into consideration their lifestyle needs before securing housing.
Renting accommodation in Hong Kong
Rent for accommodation in Hong Kong is payable monthly, and it’s the responsibility of tenants to arrange the connection of utilities.
Leases are usually valid for one to two years and require a month’s rent as deposit, but some landlords ask for up to three month’s rent as a deposit.
A lot of companies will help manage accommodation outlay and will offer loans to cover initial start-up expenses. Arrangements can then be made to reimburse the company through your expat salary at no interest on a monthly basis.
Expats must ensure they are permitted to break the lease contract if they are relocated by their company, and should try and include this as a formal written stipulation. Try to negotiate a break at the six month or one year point (for two year contracts), so that if you are unhappy with your living situation you are free to move elsewhere.
Most rental accommodation is leased in good condition and landlords hold the rental deposit until the end of the contract/tenancy (returned without interest) to ensure that any property damage is paid for. Most housing is leased unfurnished, but appliances, such as washing machines and fridges, are often provided, as are air-conditioning units (essential in Hong Kong!).
There are also shorter term serviced apartments available, but these are more expensive to rent.
The housing market in Hong Kong moves quickly, and shortages in supply have been more pronounced since the start of 2011. In many cases, if expats are prepared to move in immediately a discount on rent may be available.
Leasing agents in Hong Kong
It’s always a good idea to conduct the housing search using a number of housing agents.
Companies often put expats in touch with at least one agent, but it’s best to shop around. Agents tend to have relationships with landlords in specific areas or development complexes so if you don’t like what they’re showing you, it’s necessary to look elsewhere as most don’t have a varied portfolio.
Try to work with smaller agencies rather than the big, one stop shop companies. Usually individual agents will have longstanding relationships with landlords and can negotiate more effectively on your behalf. Feel free to walk into any housing agent in Hong Kong and ask to see some of their properties. They will usually be able to help out there and then. Furthermore, if you like the look of a particular building or development, there is likely to be an agency very close by which has a number of apartments on their books.
Everything in Hong Kong is negotiable so if you’re not happy with something before you move in, have your agent communicate with the landlord so the appropriate changes are made.
Typical examples or a request include:
- Asking that specific items of furniture be included
- Having the walls repainted
- Having any signs of wear and tear fixed up before moving day.
- Expats should also be ready to negotiate on the price, and make a starting offer for a few thousand less than the monthly rent advertised.
Space
Space is a limited commodity in Hong Kong, and it follows that apartments in the city tend to be small. Unless your budget is sizeable, prepare to downsize.
Tiny bedrooms are something many expats struggle with, at first. Some spend ages looking at countless apartments trying to find housing with larger room sizes, but alas, such a thing is rare in Hong Kong. The locals in Hong Kong use bedrooms to sleep, and that’s it. Furthermore, there is limited space for wardrobes, bedside cabinets, TV stands, vanity tables, etc. It’s also worth noting that many Hong Kong apartments have a lack of storage space; built in cupboards and wardrobes are something of an anomaly, especially in newer apartment blocks.
Another point of interest for any potential Hong Kong home search is the ubiquitous window sill in every room in a high rise apartment block. Typically oversized window sills stick out from the window about 2 to 3 feet into the room, which eat up valuable space.
If you are looking at apartments and specifically bedrooms that are smaller still because of the sill, be imaginative about how you can use the space. Many expats have custom made furniture that extends over the sill to the window and often includes built in storage underneath.
Old vs. new
Accommodation in Hong Kong can vary tremendously, but the rental market can largely be divided in to ‘old’ and ‘new’.
Older accommodation is often a bit rough around the edges, but if you’re willing to spend a bit of time making it feel like home, this could be a good, affordable option for people whose priority is space and a central location.
- Typical Chinese style
- Walk-up with no elevator,
- Lower rise style with slightly more square footage for your money,
- Less amenities included
- No high end finish
Newer apartments are usually smaller, but are bright and airy and have a much more modern and convenient feel.
- Typical high rise style
- High spec finishes
- Newer air conditioning units (vital for summer survival in Hong Kong)
- Access to a club house, gym, pool, etc. (most, but not all)
- Well-maintained
There are plenty of these available in the popular residential areas, but the luxurious lifestyle comes with a price tag. For those on a budget who want to enjoy modern living, add on a few extra stops to your commute and look at some of the newer residential areas that are developing farther outside the Hong Kong city centre.
A home for all seasons
When looking for housing in Hong Kong keep in mind that the weather changes dramatically throughout the year. If using public transportation to get to work consider the distance to the local MTR station when selecting an apartment. A 15 to 20 minute walk that may be pleasant enough from October to March can leave you sweaty and saturated in summer months.
Though not the most important point to consider when choosing your Hong Kong apartment, it’s worth keeping in mind that your home needs to be comfortable and convenient throughout all of the island’s seasons.
