When buying a property or apartment in Hong Kong, check with your bank(s) to determine your suitable amount of mortgage and the appropriate payment method.
Be prepared and anticipate other related costs, such as Mortgage arrangement fees, Estate agency fees (1% of the property’s value), Solicitor’s fees, Stamp duty (on average about 3% of the property’s value) and Insurance.
Choose your ideal location, and check the recent transaction prices of comparable, if you need any advice you are welcome to ask us about district information and property prices in those areas.
Gross floor area (GFA) Be aware that most properties and apartments for sale in Hong Kong are quoted in “Gross floor area” which according to the “Real Estate Developers Association of Hong Kong” means the sum of the unit’s covered and apportioned share of common area. But the amount of common area differs per building and the basis of determining GFA may also vary with developers. So the price per square foot when judging by the GFA could be misleading and it is best to base your comparable on the saleable area.
If you are a pet owner, find out before hand if the apartment building you are interested in allows the accommodation of pets.


Take note of the condition of the apartment building’s external walls & pipes, lobby and lifts. If these structures look outdated or worn the apartment building may be due for an external wall or interior renovation, the cost of these works will be pro-rated to each apartment.
If the apartment for sale is on a lower floor, be sure to check the level of noise pollution.
While viewing, pay attention to any water staining on the ceilings and near the bay windows, also take notice of any discoloured or loose floor boards as these may be evidence of water leakages.
Make sure to check if all the taps and the shower are in working order and is draining properly. If the building is of an older age it is wise to find out if the electrical wiring and pipes are worn or when they were last replaced.
Check the views from the apartment if there is any potential new development that may cause an obstruction.
Take note of the orientation of the property’s main windows, if the property is facing west, in summer time the property may be overly hot and prone to sun strike. The best time to discern whether the property is prone to these conditions is to view the apartment a few hours before sunset when the sun’s rays hit a low angle.
Tip: To determine an orientation of a property by approximation, use the Victoria Harbour as a reference, since the traverse of the water way is approximately aligned from East to West. So if your property is facing directly square towards the harbour from Hong Kong Island, the approximate orientation is North.

Negotiating and Making an Offer

Before making an offer consider the following points.
How Long has the property been on the market?
What was the recent transactions in the building for similar flats?
Why is the vendor selling?
What is the bank valuation? (see below)
Has the Vendor received any other offers that they have refused?
Keep in mind that making an unreasonable offer may close the door to any future negotiations by upsetting the vendor so take into consideration the market situation and the points above.
Bank valuation – Bank valuation is what the property is worth to the bank, and thus ultimately determines the size of the mortgage that you can borrow. HSBC and Bank of China provide online valuations but they may not be indicative, when needed, you can call any bank to find their valuations on a property for free. Banks use independent surveyors to value a property; all you need to do is provide them the exact address, preferably the address that the property is registered under in the Hong Kong Land Registry.
Costs associated with occupation, such as management fees and quarterly rates. These are ongoing costs which should be considered into your budget.
Building age of the property and the remaining lease term with the Hong Kong SAR. In Hong Kong, all existing land belongs to the government, when buying property in Hong Kong the purchase is actually for the existing lease.
Building Orders. Building orders require the owner to rectify an infringement with the Building’s Authority such as an existence of illegal structures or alterations. The presence of a building order may render the title of the property defective and may be costly to rectify.
Slope maintenance, if the property is on a slope the owner of the property may need to contribute to the cost of maintaining the integrity of that slope.
Be familiar with the Outline Zoning Plan (OZP) from the Town Planning Board which shows the land uses, major road systems proposed and nearby public facilities. From the Town Planning Board, a request can also be made for the Development Permission Area Plans for a particular district.

Before Signing the Provisional Agreement for Sale and Purchase (PASP)

Before signing a provisional agreement for the Sale and Purchase of the property, the agent should have verified and provided you with the latest information on the title of the property.
Obtain a copy and understand the Land Search provided by the Land Registry of Hong Kong, a document that lists the property’s owner, as well as any statutory orders, outstanding mortgages and other encumbrances affecting the property such as Building Orders as noted above.
If there is doubt about the owner’s ability to repay the loan for the redemption of the property, for example the selling price is lower than what the owner paid for the property. Make it a requirement that deposits are stake-held by solicitors.
Make sure you understand all the terms present in the agreement which should be explained to you by the agent and be aware of the amount of the deposit and when the remaining balance should be paid. In general practise, the total deposit is 10% of the purchase price, 3-5% is paid upon signing of the provisional agreement and the remaining balance in 2 weeks time.
The agreement for sale and purchase is a valid and legally binding contract. It is prudent to seek independent legal advice before entering into any agreement.

Initial Deposit

The PASP is a legally binding contract between the Vendor, The Purchaser and the Agent and details the terms of the sale including the Names of the Related Parties, The Purchase Price and the Payment Schedule amongst others.
When signing this agreement, the purchaser will provide a non-refundable deposit of 5% of the total purchase price. This is usually paid to the vendor’s solicitor and held as stake hold until which time that the Purchaser Solicitor is satisfied that the balance of the purchase price is sufficient to discharge the existing legal charge / mortgage and the title of the premises has been checked and approved.

Further Deposit

The Further deposit is Typically 10% of the transacted sale price and is provided by the purchaser in the solicitors office when signing the Formal Agreement for Sale and Purchase. This is typically done 14 days after signing the PASP.
At this time the stamp duty will be collected. Please click here to access our stamp duty calculator for purchasing property in Hong Kong

Completion of Sale

The Balance of the Sale Price is paid through the solicitors office prior to completion of the sale. This will include the draw down of the mortgage if required by the purchaser. The completion date typically between 45 and 60 days after signing the PSAP.
The Vendor is usually entitled to inspect the property prior to completion to ensure that the condition of the property is the same as when signing the PASP. Although this may not always be possible if purchasing with an existing tenant.

Agency Fees

A commission fee of 1% of the total transacted price is payable by both the purchaser and vendor. Full disclosure from the agent is required regarding all representations and commissions to be received.

Legal Fees

Both the Vendor and Purchaser shall be represented by their own Solicitor or Lawyer for the purchase of the property and each party is responsible for their own legal fees.