Buying property à Hong Kong with a dedicated expert

Hong Kong property prices are typically quoted in HKD per square metre (sqm) of saleable area. The following figures are based on data from the Rating and Valuation Department (RVD) and Global Property Guide (October 2025):

• Class A — compact units (under 40 sqm / studios and small 1-bedroom): average of approximately HK$131,305 per sqm (Global Property Guide, October 2025). These units are the most numerous in the market and attract strong demand from investors and young professionals.
• Class B — mid-sized units (40–69.9 sqm / 1–2 bedroom): average of approximately HK$132,729 per sqm (Global Property Guide, October 2025). The largest segment of Hong Kong's housing stock, popular with couples and small families.
• Class C — larger units (70–99.9 sqm / 2–3 bedroom): average of approximately HK$171,690 per sqm (Global Property Guide, October 2025), reflecting the premium commanded by more spacious accommodation in a land-scarce market.
• Luxury and ultra-luxury (villas, large apartments, The Peak): prices vary widely and can reach several hundred thousand HKD per sqm for the most prestigious addresses. Headline transactions in 2025 included units priced above HK$147,000 per sqft in Deep Water Bay (Habitat Property, 2025).

Prices differ substantially by district: Hong Kong Island prime areas command a significant premium over comparable units in the New Territories. Buyers should always verify the saleable area (as opposed to gross floor area) when comparing prices, as Hong Kong regulations require developers to quote prices on a saleable area basis.

Since 28 February 2024, Hong Kong's property purchase tax landscape has been significantly simplified. The government abolished the Buyer's Stamp Duty (BSD), the New Residential Stamp Duty (NRSD) and the Special Stamp Duty (SSD) for residential properties. All buyers — residents and non-residents alike — are now subject only to Ad Valorem Stamp Duty (AVD) at Scale 2 rates, ranging from HK$100 to 4.25% of the purchase price or market value (whichever is higher), as published by the Inland Revenue Department (2024).

• AVD Scale 2 rates (from 28 February 2024): HK$100 for properties up to HK$3,000,000; progressive rates rising to 4.25% for properties above HK$21,739,120.
• Agent commission: typically 1% of the purchase price, paid separately by buyer and seller (Estate Agents Authority).
• Legal / solicitor fees: variable, agreed directly with the law firm; typically range from a few thousand to tens of thousands of HKD depending on transaction complexity.
• Mortgage arrangement fees and valuation fees: charged by the lending bank; amounts vary by institution.
• Land Registry search and stamping fees: nominal administrative costs.

There is no capital gains tax on property sales in Hong Kong. Property tax applies to rental income from owned property at a standard rate of 15% on net assessable value (Inland Revenue Department). Buyers should budget for a total acquisition cost of approximately 5–7% above the purchase price when combining stamp duty, legal fees and agent commission.

Thorough due diligence is essential before committing to a property purchase in Hong Kong. The buyer's solicitor plays a central role in this process.

• Land Registry title search: the solicitor searches the Land Registry to verify the seller's legal ownership, confirm the chain of title, and identify any encumbrances, mortgages, charges, easements or restrictions registered against the property (Land Registry Hong Kong).
• Government lease verification: all land in Hong Kong is held under government lease (leasehold). The solicitor verifies the remaining term of the lease, the annual government rent payable, and any special conditions or user restrictions attached to the lease.
• Building orders and occupation permit: the solicitor checks whether any outstanding building orders, unauthorised structures or enforcement notices have been issued by the Buildings Department against the property or the building.
• Deed of Mutual Covenant (DMC): for units in multi-storey buildings, the DMC governs the rights and obligations of all owners. The solicitor reviews the DMC to identify any restrictions on use, renovation or subletting, and to confirm the management structure.
• Outstanding rates and management fees: the solicitor confirms that all government rates, ground rent and building management fees are paid up to the completion date, with apportionment agreed between buyer and seller.
• Physical inspection: buyers are strongly advised to conduct a thorough physical inspection of the property before signing the Provisional Agreement, checking for structural defects, water ingress, illegal alterations and the condition of fixtures. A professional surveyor can be engaged for a formal structural survey.
• Consent Scheme (new developments): for uncompleted units sold by developers, the Lands Department must have issued consent under the Consent Scheme before the developer can legally sell the units (CLIC Hong Kong).

Hong Kong's property market is transaction-driven and relatively transparent, with listed asking prices serving as the starting point for negotiation. The following approach is recommended for buyers:

• Research comparable transactions: consult recent Land Registry records and ask your estate agent for data on comparable sales in the same building or district. This provides an objective basis for your offer.
• Assess market conditions: in a buyer's market (as seen in 2023–2024), discounts of 5–15% below asking price were achievable in some segments, particularly in the secondary market. In a recovering market (2025 onwards), sellers have regained some leverage.
• Submit a written offer: offers are submitted through the estate agent in writing. It is common to include a proposed completion timeline and deposit structure alongside the price.
• Negotiate terms beyond price: in addition to the purchase price, buyers can negotiate the completion date, inclusion of fixtures and fittings, and — particularly with developers — extras such as car parking spaces, premium fittings or deferred payment schemes (ARIA Property, 2025).
• New developments vs. secondary market: developers of new projects may offer promotional packages or flexible payment terms when inventory is high. In the secondary market, motivated sellers (e.g. those relocating or facing financial pressure) may accept lower offers.
• Provisional agreement is binding: once the Provisional Sale and Purchase Agreement (PSPA) is signed, both parties are legally committed. Withdrawing after signing results in forfeiture of the deposit (buyer) or payment of double the deposit (seller). Negotiate thoroughly before signing.