One of your main concerns in the whole relocation process will be "what kind of home can I expect?"
Hong Kong offers a huge variety of types, sizes and amenities in housing, and
as in so many aspects of life, the critical factor that governs the choice will
be the rental budget so the first thing that needs to be established is exactly
what allowances and reimbursements are included in the financial package
offered by the employer for your new position.
In former times, the vast majority of expats arrived here with a basic salary
plus an allowance for additional items that were paid for separately by the
company, including rent, school fees, annual air fares, utility costs, medical
care and all repatriation costs. Senior personnel would also have a car and
driver provided. Nowadays, many companies prefer to include all these
allowances in an all-in "umbrella" package, thus saving
administrative costs and leaving the employees to make their own arrangements
accordingly. Increasingly, they also ask employees to take out a personal
lease, thus reducing the workload for the HR department. It is still accepted
practice, however, that you will receive a one-off additional "relocation allowance"
to cover the cost of removals, fees, deposits, fitting-out costs, and so forth.
Newcomers to Hong Kong are not advised to buy property here on arrival - it is
usually assumed that your stay here will be for a limited number of years and
the financial advantages of purchasing can take several years to become viable.
Also, it's tough choosing a home here - the thought that it's only a rental,
and that you can move easily in a couple of years if you get it wrong, is
indeed a comfort. In due course, if you stay long enough and market conditions suit,
you may think about buying your own home, or even a smaller investment property
to let out, but on first arriving, play safe and rent until you understand Hong
Kong thoroughly.
One of the prime reasons for the high cost of property - both sale and rental -
here is a simple matter of supply and demand. There are a vast number of people
wanting to live on a severely restricted area of land. The natural shoreline of
Hong Kong Island is a narrow strip of relatively flat land leading to soaring,
steep hills. There has been a huge amount of reclamation of coastal bays, but
this is chiefly for mass housing projects which do little to relieve our expat
problems! So please be prepared to live in smaller homes, with little or no
outdoor space, but be assured - millions of families before you have made the
adjustment, and gone on to live here most happily for many, many years! And
there are significant compensations - you may have a truly stunning seaview
instead of a front yard, you'll meet extraordinary people from many different
walks of life, all with stories to tell, you'll travel to exotic and wonderful
places, and your children will learn so much more about life than a school can
ever teach them.
Please click here to
visit our Leasing
page for more information. (Links to ‘Leasing Info’)
Keep your expectations low and you won't be disappointed! Even after the Asian recession, Hong Kong housing costs are among the highest in the world, and companies vary hugely as to the rental budget
they offer their expat employees and families.
Due to the shortage of flat land in Hong Kong, urban spread has traditionally
been vertical rather than horizontal, with high-rise buildings climbing ever
higher. There are small pockets of low-rise accommodation and on Hong Kong
Island, this is chiefly found on the Peak, Pokfulam or in the Southside where
some zones are subject to height-restriction bye-laws. However, the majority of
Hong Kong residents, including expats, live in multi-storey apartment blocks of
differing standards and amenities. Rentals vary widely and are affected by
size, location, views and facilities. It is common to have three bedrooms,
however small the floor area, and four-bedroom family-size flats are considered
"luxury" units.
Size is measured in gross square feet, and will include balconies and some
common areas, such as lift shafts and fire escapes. In more modern
developments with clubhouse facilities, the square footage of the facilities
will also be apportioned to each unit within the complex. So as a
guideline, deduct about 20% from the usually listed gross square footage to
find the net square-foot size. Generally speaking, older apartments
appear more generous in their quoted size than modern ones, probably because
there are usually no facilities or spacious impressive entrance lobbies!
High-rise apartments often give a larger useable floor area than townhouses,
which are built on small sites with many levels, losing space in stairs and
corridors. Some modern blocks incorporate a swimming pool, and many larger
developments have additional sports and play facilities, allowing children, in
particular, a good point of contact for meeting and making new friends. There
are also a greater number of potential friends to be found in a block with many
apartments than in a small housing development, so again, keep an open mind
till you can weigh up the alternatives for yourself.
Prior to the handover of the premises to the Tenant, the Landlord will usually
redecorate throughout and make good any defects. Should you make any
alterations during the term of your Tenancy, you may be required to reinstate
the premises to the initial condition (fair wear and tear allowed) upon expiry
of the lease.
Take your time looking for suitable long-term
housing (your belongings can in any case take several weeks to be shipped), as
there are so many factors to consider. While you search, the options for temporary
accommodation are:
Hotel accommodation: Asian hotel standards are very high, and many hotels offer
packages with weekly or monthly special rates and extras such as discounted
laundry, inclusive breakfasts and so forth.
Serviced apartments: Families often prefer to take serviced accommodation,
which usually provides a separate sitting area and small kitchen and can be
more homely than a hotel for a period of a month or so. There are many
alternatives and if you or your company require, we at Sallmanns Residential
can advise you on this. You need to consider the distance from school, work and
shops, and what amenities or recreational facilities are offered. However,
priority is usually given to the existing tenants, so sometimes you may be
asked to be put on a waiting list and then contacted once a suitable unit is
known to be coming available, which could be 1-3 weeks prior to the
commencement date. Obviously this is not ideal for forward planning, so
we would suggest having a 2nd choice to fall back on.
