Buy Properties in HK
How to Buy a Property in Hong Kong
Buying a home, especially if it's your first one, is probably one of the most important decisions of your life. This may make it sound like an overwhelming task, but the reality is if you know what to look for and have the help of a professional real estate agent, it can be an exciting and rewarding journey.
Hong Kong's property market is renowned across the world for its desirable homes and high prices. If you are looking to buy a house or apartment in Hong Kong, you should be in a secure employment contract with a steady income.
But beyond that, there're many more things to pay attention to.
What to Consider
As a property agency that cares and goes the extra mile, we intend to develop friendly relationships with our clients. This means that we will offer professional help and timely advice that extends beyond viewing properties and organising the paperwork.
If you're planning to buy a house or flat in HK, you will find the following handy tips helpful:
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Get a solid idea of your budget – Applying for a mortgage can be a complicated procedure. Consult your bank to gain a better understanding of the maximum property price you can afford. It will help you clear a major roadblock if you can get a mortgage pre-approval before the house hunt.
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Communicate all your requirements with your estate agent – Which district or districts are you interested in? How many rooms do you need? How big in saleable area do you want the house or apartment to be? What amenities or clubhouse facilities would you like to have access to? Think about all the things that are important to you and keep your estate agent in the know.
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Carry out an up-to-date land search – You can get from the latest land search record some crucial information about the property, such as: Who is the owner? Are there any encumbrances against the property? Is consent from the Government required or is there any premium that needs to be paid before the owner can sell the flat on the open market?
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Make sure the property is structurally sound – It's a substantial investment to buy a property in HK. To protect your own interests, you should ascertain there are no illegal additions or alterations to the structure. You'll want to avoid trouble and hidden maintenance costs in the future.
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Be tactical when negotiating with the vendor – One of our main roles as an independent and professional estate agent is to get the best possible deal for you. As a single agency, we act only in your best interests.
How Oikos Property Can Help
Providing one-stop and comprehensive real estate agent services, Oikos Property are well poised in helping you find and buy your ideal house in Hong Kong.
Whether you want to look for an apartment in the heart of Hong Kong's busiest districts or a flat further afield, we have good connections with big and small estate agencies across the city to get you the best deal with low commission.
For more reasons why you should work with us, please visit Why Us.
Frequently Asked Questions
1. Should I buy a property in Hong Kong, or rent one?
This largely depends on your budget and stability. If you have a stable income and intend to stay in Hong Kong for a longer period, buying a property can give you more financial freedom in the long run.
However, if you are not sure where your career or life is headed, renting is probably a more viable alternative. Find out more about renting properties in HK here.
2. What are the costs involved in buying and owning a residential property in Hong Kong?
Apart from the down payment, you must also take into account other one-off expenses related to your home purchase: stamp duty required by the Government, solicitor's fees, fees for registering documents, agent commission, buying of furniture, renovation and removal costs, and so on.
Of course, you should be aware of the on-going expenses of owning a home: monthly repayment for the mortgage, monthly management fee, quarterly rates and Government rent, utility (water, electricity and gas) charges, home insurance, repair and maintenance costs. If you want to lease out the apartment, property tax will also add to the list.
3. What are the procedures of buying a residential property in Hong Kong?
The first step is to determine your budget and research available properties that meet your needs, such as location, size, amenities, and the age of the building. It's crucial to have a clear understanding of your financial capabilities and the real estate market in Hong Kong to make an informed decision.
Engaging an experienced real estate agent and a reputable solicitor is highly recommended. They can guide you through the process, provide valuable insights, and protect your interests throughout the transaction.
Once you've found a property you're interested in, you'll need to make an offer through the real estate agent. If the offer is accepted, you'll sign a Provisional Agreement for Sale and Purchase (PASP), which is a legally binding contract. This typically requires an initial deposit of 3-5% of the purchase price.
Within 14 days of signing the PASP, you'll need to sign the formal Agreement for Sale and Purchase (ASP) and pay a further deposit, making the total down payment up to 10%. At this stage, you'll also be required to pay the stamp duty.
The remaining balance is paid at the time of transaction completion, which usually occurs 8-12 weeks after signing the provisional agreement. This is the final step in the process, where the property ownership is officially transferred to you.
For more detailed information, please read A Comprehensive Guide to Buying a Residential Property in Hong Kong: Procedures, Steps, and Expert Tips.
4. Can I look for and buy a property in HK on my own or should I appoint an estate agent?
In Hong Kong, licensed estate agents have professional knowledge in property transactions and are regulated by the Estate Agents Authority. You should consider appointing them for better protection and have access to more property options.
If you choose not to appoint a licensed estate agent but to buy a property in Hong Kong by yourself or via an online platform, you should be extra careful and seek professional advice when necessary.
5. What is the market rate for agent commission when I buy a house in HK?
The commission charged by estate agents in HK for buying a second-hand residential property is usually 1% of the purchase price.
At Oikos Property, we offer special discounted rates on our commission, ranging from 20-50% off. For more details, please click here.