How to Buy Property in Hong Kong as a Foreigner

Who can buy property in Hong Kong?

Foreigners, in general, can buy properties such as condominiums in Hong Kong and rent out without restriction. However, Hong Kong is not open to Afghans, Albanians, Cubans, North Koreans and Chinese from the mainland (unless they are permanent residents in another country).

There is no citizenship by investment to real estate program in Hong Kong.

Determine your budget and research available properties

It's important to understand whether you are purchasing the property for investment or for personal use as you will most definitely have different requirements for each option. Where should the property be located? What amenities should it have? 

Some popular areas amongst foreign buyers are:

  • Hong Kong Island - Most densely populated area of Hong Kong and home of the Central Business District. Essentially the heart of Hong Kong with higher real estate prices
  • Kowloon - Bustling urban district on the northern part of the Hong Kong Peninsula. Boasts energetic street life, diverse shopping and cultural attractions. 
  • The New Territories - Offers a wide variety of lifestyles from bustling towns to picturesque countryside. It's very well suited for people who enjoy spending time outdoors, exploring hiking trails and cycling paths to enjoy Hong Kong's natural beauty 

To find properties, you can search online or contract a real estate agent to help you with the process (they usually charge a fixed 1% from the purchase price). If you plan to do the latter, make sure the agent/agency is reputable and a part of the Estate Agents Authority.

To find properties online, use these sites:

For budgeting, make sure to not only include the price of the property to your calculations, but also any realtor fees and biggest of all - the stamp duty (which has a variable rate up to 15% of the property price in Hong Kong). Also, if you are planning to finance the property, you can do preliminary work in regards of talking to different banks about their lending conditions. 

Make an offer and sign the provisional agreement

Once you have found a property that you are interested in, you will need to make an offer to the seller. Usually this is done through the real estate agent. In this stage it's also important to find a local real estate lawyer who can guide you through the nuances of Hong Kong real estate law, titles and other necessary due diligence.

If your offer is accepted, a provisional sales and purchase agreement will be drawn up. This agreement will outline the terms of the sale, such as the price, the deposit, and the closing date.  Review this agreement carefully with your legal advisor before signing as it is legally binding and has penalties for cancellation.

Typically, the buyer pays 5% of the purchase price as a down payment when a preliminary sales and purchase agreement is signed.

Finalise the purchase

Usually around 14 days after signing the provisional agreement, the formal sales and purchase agreement will be signed.  When the formal agreement is signed, the buyer pays another 5% downpayment and the stamp duty which notifies the Land Registry of the sale. If you are using a bank to finance the deal, you would complete your mortgage documentation during this period aswell. 

Closing usually takes 8-12 weeks from signing the provisional agreement. During the closing process, the remainder of the purchase price is paid alongside any legal fees and broker costs. 


What costs can you expect when purchasing real estate in Hong Kong?

Transaction Costs

    Who Pays?
Property Transfer Tax 0.10% - 4.25% buyer
Legal Fees 1.00% buyer
Notary Fees 0.75% - 3.75% buyer
Real Estate Agent's Fee 0.50% - 1.00%
0.50% - 1.00%
buyer
seller
Costs paid by buyer 2.35% - 10.00%
Costs paid by seller 0.50% - 1.00%
ROUNDTRIP TRANSACTION COSTS 2.85% - 11.00%
Source: Global Property Guide

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