Buying houses in Hong Kong – house buyers’ guide

Buying land in Hong Kong is a more difficult feat than purchasing condominiums or apartments. Firstly, the government owns nearly all of the land and can at its whim release parcels of that land for sale, thereby affecting the market directly. Land cannot be purchased freehold, but rather on a renewable leasehold basis. Land leases are presently being granted for 50 years, though in the past they have been issued for 75, 99, or 999 years.

In addition, because all land belongs to the government those who buy property actually buy an agreement or a lease. Older leases are generally very simple and contain few obligations and restrictions. Newer leases usually incorporate more detailed restrictions, obligations and development conditions including environmental control.

The price of land and houses varies wildly in Hong Kong, although a new standard for luxury property sales in the city was set when a property on The Peak went on the market in 2006. Sitting 1,811 feet above sea level, this is the highest point on Hong Kong Island and has long been a hotspot for wealthy investors, dating as far back as the 19th century. It is also a tourist attraction offering spectacular 360-degree views of all of the surrounding islands.

Situated on Hong Kong Island’s highest vantage point, a residence on The Peak provides exquisite views of the harbour and the outer islands. There are a large number of colonial style buildings, townhouses and detached houses available for rent. A wide range of facilities is available to Peak residents including supermarkets, schools and restaurants. The Peak became the site of the most expensive residential piece of land in the world when the government auctioned 12 Mount Kellett Road – and it sold for HK$1.8 billion. Sun Hung Kai Properties paid a record HK$42,196 psf, 134 per cent of the opening bid.

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