What should i know before investing?
Hong Kong Real Estate Law and Ownership Structures
- Land Lease System: All land is state-owned; long-term government leases are granted (typically 50 years after 1997).
- Types of Ownership: Sole ownership, joint tenancy (right of survivorship), tenancy-in-common (share passed through inheritance).
- Document Registration System: Registration of agreements in the Land Registry, priority of documents, but not a guarantee of ownership. Ownership is proven by a 15-year chain of title.
- Key Laws: Conveyancing and Property Ordinance, Land Registration Ordinance, Residential Properties (First-hand Sales) Ordinance, Buildings Management Ordinance.
Breakdown of Fees and Taxes
- Stamp Duty (AVD): Progressive rates, with BSD and NRSD abolished since February 2024. The maximum property value subject to a HK$100 stamp duty increased to HK$4 million from February 2025.
- Real Estate Agent Commission: Typically 1-2% of the purchase price.
- Legal Fees: Depend on the complexity of the transaction (approximately 0.1-0.2% of the price).
- Land Registry Fees: Fixed government charges.
- Other Expenses: Insurance, valuation, building management, property taxes (15% of net assessable rental value if leased), utilities.
Legal and Regulatory Landscape for Foreign Investors
No major restrictions on foreign ownership.
Foreigners can obtain mortgages. The maximum Loan-to-Value (LTV) ratio is typically up to 70%.
Key requirements include a passport, proof of funds and income, and transaction documents.
Major Hong Kong and international banks offer mortgages.