Living in Hong Kong

Built Environment

With less than 25% of land developed, Hong Kong covers Hong Kong Island, Kowloon, the New Territories and Lantau Island.

Hong Kong Island is an island of less than 80 sq.km. with much of that being mountainous rock. Land for development here is at an absolute premium and is thus utilised to its fullest advantage. High-rise apartment blocks, some over 40 storeys, are a common sight while low-rise developments or townhouses are only found in neighbourhoods which have height or zoning restrictions such as The Peak and coastal areas along the main south island roads. Accommodation options available in areas close to the Central Business District, including Mid-levels and Happy Valley, are mostly exclusive high-rise apartment living.

Across the famed Victoria Harbour, Kowloon and the New Territories are likewise divided into high-rise and low-rise areas.

Typical Homes

1. Apartments

Apartments in Hong Kong are usually on one level with various layouts. Typical features include combined living and dining room, kitchen, maid's room and toilet, utility/laundry area, two to four bedrooms and up to three bathrooms. Some, usually the older blocks, have balconies and apartments on the top floor may enjoy exclusive use of the rooftop terrace. Separate dining rooms are rare.

Properties built in the last ten years are equipped with modern, fitted kitchens and bathrooms, while many older units have been renovated, some to quite a modern standard. A few "luxury" premises offer high standard kitchens and bathrooms at matching "luxury" prices. Appliances are sometimes, but not always, provided.

Modern developments also often provide communal recreational facilities which may include swimming pool(s), tennis/squash/badminton court(s), clubhouse and gymnasium, billiard room, and playgrounds.

Air-conditioning is essential in Hong Kong and while the better buildings are equipped with central or individual systems, it is sometimes necessary to install your own.

Click here for the typical apartment floorplan.

2. Townhouses

Attached on one or both sides to another house, townhouses are usually developments of around seven to 20 or 30 houses, mostly of four or five storeys. They vary greatly in size from 2,000 sq.ft. to over 5,000 sq.ft. The larger ones usually boast a separate dining room, family room or study, in addition to three or four bedrooms and bathrooms. A small private garden and/or a usable roof terrace are sometimes available also. A private detached house with garden is a real luxury in Hong Kong and only a very few are available at the top end of the market or in outlying areas.

A number of developments share communal pool facilities, and the larger or more expensive ones may also have tennis/squash courts or a clubhouse.

Most accommodation is leased out in good condition with walls and ceilings repainted, parquet flooring (common to most properties) polyurethaned and minor repairs made to fixtures and fittings. The majority are however leased unfurnished, except for the smaller sized or serviced apartments.

Depending on the age of the property and the rental, kitchens can be fully provided with cookers, refrigerators, dishwashers, washing and drying machines or not be equipped at all. In the latter case, the bare essentials of fitted cupboards and sinks may only be provided.

Where central air-conditioning is provided, there may be an extra cost for maintenance or else the tenant may be responsible for maintenance during the term of tenancy. If no central system exists, individual room units are necessary.

Click here for the typical townhouse floorplan.

3. Serviced Apartments

A fairly wide choice of serviced apartments is available in Hong Kong. Size ranges from around 600 sq.ft. up to 3,300 sq.ft., but the vast majority is under 2,000 sq.ft. These can be studios, one bedroom with sitting room, bathroom and open kitchen, or with two bedrooms. Very few serviced units house three bedrooms.

Most units range from good standard up to international hotel-suite standard and are well provided with linen, cutlery, crockery and cooking utensils. The costs are a fairly good indication of standard, with good quality starting around HK$32 per sq.ft. up to as high as HK$78 per sq.ft. for luxury standard.

Leasing is often for a minimum term of three months although, when vacancy rates are higher, a one-month lease is also possible.

Click here for the typical serviced apartment floorplan.

Buy or Rent

Are you considering the consequences of buy or rent? Are you wondering whether it would be beneficial to buy property rather than continue to rent? While each individual's needs are unique there are some significant and key factors that should be taken into consideration. Outlined below are some pros and cons of buying property as compared to renting space.

A Qualitative Decision

The buy vs rent decision is more than a simple financial one. Most rent vs buy calculators help you make a quantitative decision; i.e. they work out whether it will cost you less to rent or to buy. However, such calculators constitute only a minor part of the decision, because many hidden costs, such as repairs and maintenance, as well as the cost of moving, are usually not included in many rent vs buy equations. Most importantly, the rent vs buy decision is often not a quantitative one, but a qualitative one.

Some common qualitative considerations include:

  • Whether you need a better credit reference for future borrowing
  • How much stress you are prepared to deal with if and when you move into your new home
  • Whether your sense of independence or freedom is more important (being an owner can give you a sense of financial independence, but being a tenant frees you from responsibilities that inhibit your freedom)
  • Whether you would rather spend or save
  • Your retirement/pension strategy
  • Desire for a ‘home ownership culture’ – seen as a sign of ‘social status’ to own property
  • Investment planning for the future
  • A legacy for the children
Pros and Cons of Buy vs Rent

Buying: advantages

  • Owning property will initially cost far more upfront; there are also property, appraisal, maintenance costs and responsibilities along with a large down payment and possible property improvement costs
  • Any gain in value of the property will increase your capital
  • Your mortgage repayment is likely to be similar to a rental payment on the same property on a long term basis
  • Cultivates a sense of security and stability
  • More flexibility: not dependent on landlord to maintain property

Buying: disadvantages

  • Owning property will initially cost far more upfront; there are also property, appraisal, maintenance costs and responsibilities along with a large down payment and possible property improvement costs
  • Greater financial risk, risk of foreclosure and loss of equity governed by market conditions
  • Any loss on the value of the property will decrease your capital
  • If you own property you are less mobile than if you rent

Rent: advantages

  • Less financial burden compared to an outright purchase
  • Responsibility to refurbish and maintain property carried out by the landlord
  • Flexible: more mobility
  • Free-up working capital: with your money not tied up in real estate your ability to borrow funds will not be as limited as with buying property
  • Exempt from rental overheads
  • Smaller down payments rather than a large deposit and lower monthly payments
  • There is no "resale" problem at the end of the lease period

Rent: disadvantages

  • No asset-value in the property - the landlord profits
  • Variable costs: you may be subject to upward rental increments and higher costs at the time when your contract expires
  • No equity: while renting you will be funding someone else's investment
  • All or most tenants inevitably have contractual obligations towards their landlord

Professional Assistance and Advice

By and large, personal and professional circumstances as well as lifestyle factors typically dictate the best way forward when deciding whether to buy or rent property. This is a complex issue, and involves a detailed assessment of your circumstances and requirements, the property you wish to acquire, and the offers that are available. Many of the buy vs rent factors can only be assessed by you, but having a helping hand from a real estate professional will assure you of making the best possible decision.

For further information, please contact our The KeyPersons.

Renting

Leasing Conditions

Most properties are leased out in good decorative condition but unfurnished, often but not always provided with appliances which may include cookers, refrigerators, washing and drying machines, dishwashers and air-conditioners, but excluding soft furnishings such as carpets and curtains. Except for serviced apartments, furnished apartments are rare, which are usually smaller units with only one or two bedrooms.

Air-conditioners are essential for comfortable living during the summer months and, if not provided by the landlord, will need to be installed by the tenant.

Serviced apartments, with comparatively higher rentals, offer good to excellent facilities for short lease periods of three months or longer. Most have one or two bedrooms although some three-bedroom units are available.

Tenancy Agreements

Most tenancy agreements in Hong Kong are for a two-year period, although it is often possible to have an escape clause that gives the tenant the right to break the tenancy on giving two or three months' notice to the landlord after a minimum occupation period of 12 to 15 months. By law, the tenant has the right of first option to renew the tenancy after each two-year period, at the current market price.

Rentals

Rentals are in Hong Kong dollars payable monthly in advance and, except for serviced apartments, are usually exclusive of monthly management fees and government rates, for which an additional 12-15% of the rent.

Management Fees

These fees, payable by all occupants, provide for communal services such as security guards, cleaning and maintenance of common areas and amenities. The amount varies according to the age and number of units in a building and the type of amenities or quality of services provided.

Rates and Government Rent

Rates are a form of property tax on all private accommodation, assessed by and payable to the Government at around 5% of the approximate annual rental value. In addition, properties in some districts (part of the New Territories and outlying islands) are subject to government land rent, which is calculated at 3% of the rateable value. These charges are usually payable quarterly in advance by the landlord.

Available Funds Required

The tenant needs to pay a number of costs applicable to finding a home in Hong Kong as detailed below. Most are payable in advance or quite quickly after choosing where you will live in. It is recommended that you arrange to have funds available in advance in Hong Kong for this purpose equivalent to at least four times your budgeted monthly rental, preferably five.

Deposit

These are usually equivalent to two, occasionally three, months' rental and are payable to the landlord when an offer to lease is accepted. They are mostly refundable in full should the tenancy agreement not be signed. Once the tenancy agreement is concluded, the deposit is held by the landlord without interest, and refunded to the tenant upon expiration of the lease. The cost of any damage or reinstatement work necessary to the apartment, other than fair wear and tear, is deducted from the deposit before repayment.

Government Stamp Duty

This is a form of government tax payable on all tenancy agreements, usually payable by the tenant and landlord in equal shares. The total amount payable on a two-year lease is 0.5% of the annual rent plus HK$5, or 0.25% of the annual rent plus HK$5 for a one-year lease (uncommon except for serviced apartments).

Agency Fees

The tenant is required to pay an introductory fee of half of one month's rental to the agent. In accordance with local practice, the agent may also accept a fee from a third party such as the landlord or landlord's agent. Package details available to corporations on request.

Utilities

Except for serviced apartments, it is the tenant's obligation to arrange for connection of utilities such as gas, electricity and telephone/fax lines. A deposit or connection fee is payable to each provider, roughly equivalent to two months' estimated usage, refundable upon termination of the service.

Buying

Hong Kong’s property market continues to rise. Combined with rising rent, it is attracting more and more homebuyers to the market. To those inexperienced, buying a property may seem daunting. Here are some pointers to demystify the process and to ease this important decision.

Prudent enquiries

It is prudent to ask the seller or his agent to confirm the following matters:

  • Any notice requiring repair, improvement or other works to be done or paid for by the owner which is issued either by the building manager or the government
  • Any third party claim against the co-owners of the building/development
  • Anything untoward (such as death or accident) which has taken place in or affecting the property
  • Any illegal structure in the property and/or the common areas

Provisional Agreement

After you are satisfied with the property and agreeing on the purchase price, you will be asked to sign a provisional sale and purchase (S&P) agreement. Unless it is expressly “subject to contract”, this agreement obliges you to buy the property upon signing otherwise you may lose the initial deposit paid or even be liable for breach of contract.

The usual payment terms are as follows:

3-5% of the purchase price is payable as initial deposit on signing

10% of the purchase price is usually payable within 14 days after signing of the provisional agreement when the formal agreement is also to be signed

It is in the interest of the buyer that the deposits are held by the seller’s solicitor as stakeholder and not paid directly to the seller. The seller should only receive the money after he has proved a good title and that the balance of the purchase price is enough to pay off any outstanding charges against the property

The balance, 90% of the purchase price, is payable on completion which is usually between one and three months after signing the formal agreement

Identity of Buyer

You should decide on the identity of the buyer(s) before signing the provisional agreement, otherwise you may have to incur additional stamp duty before you could get the property transferred to the new buyer. Buying with a company could in some situations give you tax advantages but this is to be considered against the additional costs involved in maintaining a limited company.

Third-party Interests

When inspecting the property, check who the occupiers are and ask if they have any interest in the property. It is possible that an occupier, such as the wife who is not a registered owner, has acquired an interest in the property by having contributed in some way to the purchase price. You may have to obtain their consent before the sale can go through. Let your solicitor know if you are aware of the existence of such occupiers.

Buyer's Risks before Completion

Under the law and subject to any contrary provision, provided that the seller has taken reasonable care in the use or keeping of the property, risks to the property pass to the buyer on signing of an agreement for sale and purchase. Therefore, even if the property is burnt down or otherwise damaged before completion, the buyer is nevertheless obliged to complete the purchase without any price reduction. It is therefore advisable for the buyer to get insurance cover even for the period before completion.

Title Investigation

The seller's proof of his ownership of the property is in the set of title deeds which he holds. These include the land grant and the documentary transfers of the property title from one owner to the next until it becomes vested in the seller.

An important duty of the buyer's solicitor is to review the title deeds and conduct various searches to ensure that the seller has a good title to the property and has full right to sell it to the buyer free from encumbrances. Unless and until the seller has a registered title under the Land Titles Ordinance, the seller's duty to prove good title can still be an onerous task.

Completing the Purchase

To protect the buyer, completion of the acquisition (that is to pay the balance of the agreed price and sign all legal documents) should be scheduled to take place at least 30 days after the signing of the provisional agreement. Otherwise the buyer could be subject to the risk of not getting a clear title on completion.

This is because a person who has acquired an interest in the property (such as a mortgagee or another buyer) needs only register the document under which he or she acquires the interest in the Land Office within 30 days of the creation of his interest (usually known as “the priority period”). If he or she does so, in case of a conflicting claim against the property, the ranking of his or her right will count from the date of the document instead of the date of its registration.

Therefore, your solicitor would only be able to confirm that you do not have to deal with any competing claims against the property if the Land Register shows no other registration during your priority period, assuming that your agreement with the seller has been registered within the priority period.

Before completion, you should conduct a final inspection of the property to ensure that the handover condition is as the parties have agreed and vacant possession can be delivered to the buyer.

As a golden rule, never sign any legal document if you do not understand its contents. You should ask your solicitor for assistance and advice to avoid expensive consequences.

Transaction Steps

The transaction process is summarised as below for easy reference.

  • Buyer and seller negotiate and agree on purchase price and other basic terms
  • Buyer and seller sign provisional S&P agreement; buyer pays an initial deposit (3-5% of purchase price)
  • Buyer makes application for a mortgage loan (if financing is required)
  • Seller's solicitor prepares draft formal S&P agreement to be approved by buyer's solicitor
  • Buyer and seller sign formal S&P agreement (usually within 14 days after signing of the provisional agreement); buyer pays second deposit (10% of purchase price less initial deposit)
  • Seller's solicitor sends title deeds to buyer's solicitor for perusal
  • Seller's solicitor answers questions raised by buyer's solicitor to prove the seller's title
  • Buyer conducts final inspection of the property to ensure that vacant possession of the property can be delivered upon completion
  • Buyer opens account and pays deposits for the public utilities including electricity, gas and water (to ensure continuous supply as the seller would close his or her account with these utility companies after the conclusion of his sale)
  • Buyer executes the assignment (which is the document under which the seller transfers title to the buyer on completion) and mortgage deed (if required) two or three days before completion (so as to ensure the availability of the mortgage loan)
  • Buyer settles through his or her solicitor the balance of purchase price and related costs including his or her share in management fees, rates and Government rent as shown in an apportionment account prepared by the seller's solicitor, and pays his or her solicitor's fees and disbursements
  • Buyer's solicitor draws down the mortgage loan on the completion date and pays the balance of purchase price in return for keys to the property; buyer can move in afterwards
  • Buyer's solicitor arranges for payment of stamp duty and for registration of the assignment and mortgage (if any) in the Land Registry
  • Buyer's solicitor sends all title deeds to buyer or mortgagee bank (if any)

Tax Issues

As a general rule, taxation is only levied on income or transactions having a direct connection with Hong Kong. The concepts of residence, domicile or citizenship have little, if any, relevance. Taxation is based on the 'territorial' concept.

There are three distinct taxes designed to tax income derived from Hong Kong, namely Profits Tax, Salaries Tax and Property Tax.

Profits Tax

Profits Tax is levied at the rate of 16.5% on corporations, and 15% on unincorporated entities (2018/19 onwards) on business profits which satisfy both of the following criteria:

  • The company must be carrying on business in Hong Kong
  • The relevant profits must be earned in or derived from Hong Kong

Hong Kong adopts a territorial basis for taxing profits derived from a trade, profession, or business carried on in Hong Kong. Profits Tax is only charged on profits which arise in or are derived from Hong Kong. That means, a person who carries on a business in Hong Kong but derives profits from another place is not required to pay tax in Hong Kong on those profits. The source of income is generally regarded as a 'practical hard matter of fact\. In the context of international operations, this typically means that the person ultimately deriving the income may have some tax planning opportunities. Rates of Hong Kong taxation are low and with care effective rates can be made even lower. Hong Kong does not have any form of dividend taxation or withholding taxes and hence profits accumulated in a Hong Kong company can be distributed without tax deduction in Hong Kong.

Capital Gains

There is no taxation of capital gains in Hong Kong. Any profits arising from the sale of capital assets are not subject to Profits Tax. The question of whether an asset is capital or revenue depends upon the circumstances of each case. Although there is extreme difficulty in distinguishing between the two, the principles applied by the Hong Kong courts and the Board of Review in similar cases in determining whether the asset is acquired as capital asset or trading asset include:

  • the intention of the taxpayer at the time of acquisition of the property is crucial
  • the intention to hold property as a capital investment must be definite and can only be determined objectively
  • length of period of ownership
  • frequency or number of similar transactions
  • circumstances responsible for the disposal
  • accounting treatment

Thus, if a company is engaged in the business of property trading in Hong Kong, the company is subject to Profits Tax on the trading profits.

Tax Returns

Any company potentially liable to Profits Tax will be issued with a tax return for completion at the end of each tax year. This should be submitted within one month of issue (although in practice longer periods may be granted upon application) together with audited financial statements covering the company's accounting year ending in the relevant tax year.

This return forms the basis for a final tax assessment on respect of the relevant tax year payable for the current years. For example, a company with a 31 December year-end would report its results for that year-end in its return for the tax year ending the following 31 March.

Salaries Tax

Although many salary and wage earners pay no tax due to levels of income below the threshold, employment income with a Hong Kong source is strictly subject to Salaries Tax. In most circumstances where tax is payable a flat rate (2018/19 onwards: 17%) applies, but in the case of annual income levels below HK$2,022,000 for a single person (2018/2019) or HK$ 3,144,000 for a married couple (2018/2019) lower effective rates can apply. These lower rates are applicable irrespective of whether or not the salary earner is a resident of Hong Kong.

Housing Benefits and Other Benefits in Kind

Generous tax treatment of company supplied housing and other 'benefits in kind' makes Hong Kong a competitive location for senior executives of international groups responsible for the Asian region. For example, the provision of accommodation, a company car, domestic furniture etc should, under suitable arrangements, attract no tax to the employee (whilst the cost should be fully deductible to his employer). Housing provided to an employee is taxed by way of increasing his taxable income by 10%. Only in exceptional circumstances does this have any direct relationship to the actual cost of the housing to the employer; the actual cost is usually significantly higher.

Property Tax

Property tax is imposed on owners of rented land and/or buildings situated in Hong Kong. It is computed at the standard tax rate (2008/09 onwards: 15%) on the net assessable value of a rental property. The “net assessable value” is 80% of the rental income after deduction of any rates paid.

Companies are exempt from the tax, being liable to pay Profits Tax on any such income.

Stamp Duty

The transfer of shares in a Hong Kong company (whether private or publicly quoted) must be stamped. The rate of duty is 0.1% payable by each of the buyer and seller involved in a transaction, giving an effective rate of 0.2%. Duty is charged on the sales consideration or the fair market value, whichever is the higher. In evaluating the fair market value, the Stamp Duty Office will normally accept the net asset value shown by the company's audited accounts, subject to an upward adjustment to reflect a higher value for land and buildings than that shown in the accounts, where appropriate. No Stamp Duty is charged in the case of transfers of shares within a group of companies, where both parties are under 90% common ownership.

Duty at the maximum rate of 3.75% is payable on the transfer of land and buildings located in Hong Kong and on agreements for sale. In order to dampen land speculation the government introduced Stamp Duty chargeable on agreements to purchase property. However, as a relief to a buyer of residential property, payment of Stamp Duty may be deferred until the assignment is executed according to the agreement on the date of re-sale of the property. The maximum period of deferral is three years after the execution of the agreement.

Stamp duty is also chargeable in relation to leases of land and buildings located in Hong Kong. The rate of stamp duty on an agreement for lease ranges from 0.25% to 1% of the rentals depending on the lease period.

All parties executing the transaction for (a) conveyance on sale (b) agreement for sale of residential property or (c) lease agreements are liable to stamp duty. Although there is no stipulation in the relevant laws who should be responsible for the stamp duty, it is customary for the buyer to bear this tax in a sale and purchase transaction. In the case of leasing transaction, it is usually shared equally by the landlord and the tenant.

The rates of stamp duty are as follows:

On Sale or Transfer of Immovable Property in Hong Kong

With effect from 1 April 2010, stamp duty on sale of immovable property in Hong Kong is charged at rates which vary with the amount or value of the consideration as follows:

Amount or value of the consideration (in HKD)
Exceeds Does not exceed Rate
. $2,000,000 $100
$2,000,000 $2,351,760 $100 + 10% of excess over $2,000,000
$2,351,760 $3,000,000 1.5%
$3,000,000 $3,290,320 $45,000 + 10% of excess over $3,000,000
$3,290,320 $4,000,000 2.25%
$4,000,000 $4,428,570 $90,000 + 10% of excess over $4,000,000
$4,428,570 $6,000,000 3%
$6,000,000 $6,720,000 $180,000 + 10% of excess over $6,000,000
$6,720,000 $20,000,000 3.75%
$20,000,000 $21,739,120 $750,000 + 10% of excess over $20,000,000
$21,739,120 . 4.25%
Ad Valorem Stamp Duty (AVD)

With effect from 23 February 2013, unless specifically exempted or otherwise provided, stamp duty on sale or transfer of immovable property in Hong Kong is chargeable with ad valorem stamp duty (AVD) at higher rates as follows:

Amount or value of the consideration (in HKD) Fee
Exceeds Does not exceed Rate
. $2,000,000 1.5%
$2,000,000 $2,351,760 $30,000 + 20% of excess over $2,000,000
$2,351,760 $3,000,000 3%
$3,000,000 $3,290,320 $90,000 + 20% of excess over $3,000,000
$3,290,320 $4,000,000 4.5%
$4,000,000 $4,428,570 $180,000 + 20% of excess over $4,000,000
$4,428,570 $6,000,000 6%
$6,000,000 $6,720,000 $360,000 + 20% of excess over $6,000,000
$6,720,000 $20,000,000 7.5%
$20,000,000 $21,739,120 $1,500,000 + 20% of excess over $20,000,000
$21,739,120 . 8.5%
Special Stamp Duty (SSD)

With effect from 20 November 2010, any residential property acquired on or after 20 November 2010, either by an individual or a company (regardless of where it is incorporated), and resold within 24 months (the property was acquired on or after 20 November 2010 and before 27 October 2012) or 36 months (the property was acquired on or after 27 October 2012), will be subject to a Special Stamp Duty (SSD).

SSD is calculated by reference to the stated consideration or the market value of the property (whichever is the higher), at the following rates for different holding periods of the property by the seller or transferor before disposal:

Holding period The property was acquired on or after 20 November 2010 and before 27 October 2012 The property was acquired on or after 27 October 2012
6 months or less 15% 20%
More than 6 months but for 12 months or less 10% 15%
More than 12 months but for 24 months or less 5% 10%
More than 24 months but for 36 months or less . 10%
Estate Duty

Estate Duty is abolished for estates of the deceased on or after February 11, 2006. No estate duty affidavits and accounts need to be filed and no estate duty clearance papers are needed for the application for a grant of representation in respect of deaths occurring on or after that date. By abolishing Estate Duty, it is hoped that Hong Kong could attract more local and overseas investors to hold assets in Hong Kong and promote the development of Hong Kong as a trust and an asset management centre.

Glossary of Terms

Glossary of common terms found in residential leasing in Hong Kong

Please note that in this glossary, the terms "lease" and "tenancy" are used interchangeably.

Agency Fees

Often referred to as "commission", this is the fee charged by all agencies for the services of their consultants. The fee is payable on any premises leased, purchased or introduced to you by your agent. Agents reserve the right to charge the Landlord or Vendor on the same fee structure. For rental the standard Agency Fee is one half of one month's rental and is payable upon signing the Formal Tenancy Agreement. For sale and purchase the standard fee is 1% of the purchase price and is payable upon signing the Formal Agreement for Sale and Purchase.

Air-Conditioning

An essential in Hong Kong's hot and humid climate, air-conditioning units are usually installed in the property by the Landlord. Air-Conditioning can be centrally installed and controllable in each room (known as "Central Air-Conditioning"), or provided by individual units. Individual units may be "window-type" (usually manually controlled) or "split-type" (usually remote controlled).

Break Clause

Sometimes the Landlord will grant a clause in the Formal Tenancy Agreement allowing the Tenant to give early notice after a specified period of occupation of the premises. The standard arrangement is for a two-year Lease with a two (or three) month Break Clause after 12 (or 15) months. This means that, after 12 months of the Lease, the Tenant can give the Landlord not less than two months' written notice of his or her intention to leave the premises. The advantage to the Tenant is that the amount of the Rent is guaranteed for two years although he or she may leave the premises after 14 months.

Break Lease

If the Tenant needs to leave the premises earlier than allowed for in the Formal Tenancy Agreement, he or she will try to find a "replacement" tenant to take over the Lease. This can be done in either of the following ways:

  1. The new or replacement tenant takes over the property until the expiry of the existing Lease
  2. The new or replacement tenant has a new two-year Lease granted by the Landlord.

In either case, the outgoing Tenant will need the permission and co-operation of the Landlord and should expect to pay the Landlord's share of the Agency Fees and Stamp Duty payable.

Commencement Date

This is the date that the Tenancy starts and from which Rent is payable. The Tenant may move in before the Commencement Date if he or she has a Rent-Free Period or later if he or she carries out his or her own Renovation or Decoration works.

Company Lease

In case of a Company Lease, the employee's company signs the Lease and is named as the Tenant. The employee is then known as the Occupant. The company usually requires the permission of the Landlord before substituting another occupant, even another company employee, although this is rarely opposed by the Landlord. The company is responsible for the payment of Rent and associated costs. (See also Personal Lease)

Communal Facility

A facility, such as a swimming pool or garden, shared by some or all of the occupants in the building or development.

Decoration

It refers to the state of internal decoration of the premises, not to be confused with Renovation. Most rental premises will have basic decoration of walls and ceilings painted in white and polished wooden floors. Carpet is rarely fitted due to the high humidity levels although many Tenants introduce rugs as part of their own Decoration.

Duplex

A two-storey apartment.

Electrical Appliances

Unless otherwise stated, you can assume that all properties have air-conditioning units installed. Other appliances often supplied/requested would be a fridge/freezer, washer/dryer, and a cooker. Note that unless you specifically ask for a "Western-style cooker" you will usually be supplied with a Chinese-style two-ring gas burner. Smaller appliances such as TV, hi-fi, or small kitchen appliances such as kettle are rarely supplied by the Landlord (except in Serviced Apartments). Note that even if the Electrical Appliances are provided by the Landlord, it is still the Tenant's responsibility to maintain, repair and replace the units. Appliances run on 220 or 240-volts and North Americans are recommended to purchase new appliances upon arrival in Hong Kong.

Estate Agency Agreement - Forms 1 to 6

Estate Agents in Hong Kong have been licensed since January 1999, regulated by the Estate Agents Ordinance and monitored by the Estate Agents Authority (EAA). The EAA have introduced several prescribed documents regulating the relationship between the Estate Agent and the client.

  • Form 1 - The Property Information Form detailing information of a property for sale
  • Form 2 - The Leasing Information Form detailing information of a property for lease
  • Form 3 - The Estate Agency Agreement for sale of residential properties in Hong Kong for use between an Estate Agent and a Vendor
  • Form 4 - The Estate Agency Agreement for purchase of residential properties in Hong Kong for use between an Estate Agent and a Purchaser
  • Form 5 - The Estate Agency Agreement for leasing of residential properties in Hong Kong for use between an Estate Agent and a Landlord
  • Form 6 - The Estate Agency Agreement for leasing of residential properties in Hong Kong for use between an Estate Agent and a Tenant

For the Tenant, the relevant forms are Form 2 and Form 6:

Form 6 includes details of the appointment of the Agent by the client, the validity period of the agreement, the agency relationship and duties of the Agent, Agency Fees, property information, disclosure of pecuniary or beneficial interest by the Agent, and details of properties introduced to the client by the Agent (including the amount of commission payable by the property owner).

An Estate Agent must also provide more specific information for each property introduced on Form 2 or Leasing Information Form, including details of the correct address, the registered owner, subsisting encumbrances, floor area, year of completion, user restrictions, and any restrictions on leasing. The client may waive his or her right to receive this information.

Please note that it is a legal requirement that Form 6 should be signed by both the Estate Agent and the Tenant and the Tenant must be given a copy for his or her information.

Estate Agent

It refers to an individual or a company that carries out the business of estate agency. In Hong Kong, all Estate Agents (individual and company) must be licensed and clearly display their licence number on all documentation including advertising. Complaints about an Estate Agent may be made to the Estate Agents Authority.

Estate Agents Authority (EAA)

This is the body set up to regulate the estate agency industry in accordance with the Estate Agents Ordinance. The body acts as an educator and regulator.

Exclusive Rental

This is the usual arrangement in Hong Kong and denotes that the Management Fees and Government Rates are payable by the Tenant. (See also Inclusive Rental).

Facilities

It is used to denote recreational facilities such as swimming pool, tennis or squash courts, gym, children's play area, residents' shuttle bus service, etc. Facilities are common in larger developments and usually entail higher Management Fees. The use of Facilities is usually included in the Rent although additional charges may be made for tennis or squash courts.

Formal Tenancy Agreement

See Tenancy Agreement.

Fully Furnished

It refers to a property which is furnished in full. Most properties in Hong Kong are supplied on an unfurnished basis. A Fully Furnished property will usually include basic furniture such as sofa and easy chairs, TV unit, dining table and chairs, beds and wardrobes. Soft furnishings will include curtains or blinds for the windows, and may include lamps and pictures. Items such as bed linen, crockery, cutlery and utensils are rarely provided by Landlords except in Serviced Apartments.

Government Rates

This is a property tax levied quarterly by the Hong Kong Government. Rates, a tax on occupation, are paid as 5% of the "rateable value" of the property, which is approximately equivalent to the annual Rent. Unless specified otherwise, Government Rates are payable by the Tenant.

Government Rent

Formerly "Crown Rent," this is a tax levied by the Hong Kong Government on some, but not all, properties depending on the Term of the Crown Lease of the property. Generally, all properties in Kowloon and the New Territories are liable to pay Government Rent whilst those on Hong Kong Island are currently less likely to be liable. The owner of the property should know at which point it will become liable for the tax. If applicable, Government Rent is calculated at 3% of the rateable value of the property and is charged quarterly together with Government Rates. Unless specified otherwise, Government Rent is payable by the Landlord.

Hand over

This is the procedure of handing the property from the Landlord to the Tenant. At this stage, the Estate Agent will assist the Tenant to check the internal and external condition of the property, check the Inventory, take details of meter readings, etc. A detailed handover report will be prepared and a copy given to both the Landlord and the Tenant. At the end of the Tenancy, a similar procedure is carried out, known as a "hand back".

Holding Deposit

It is usually equivalent to one month's rent and generally paid subject to contract (to the Landlord's solicitor) when an offer is made on a property and prior to receiving a draft Tenancy Agreement. This deposit becomes the first month's rent when the Tenancy Agreement is signed or is usually fully refundable in the event that the Tenancy Agreement is not signed by both parties.

House

Houses are rare in Hong Kong due to the high price of land. Most Houses will actually be "townhouses" meaning that they are attached on one or both sides to another house within a development. In this instance, each House will have its own garden or terrace and often a roof terrace. Detached Houses, extremely rare and accordingly expensive, are usually found on The Peak and in certain areas of the Southside, Kowloon, and the New Territories.

Inclusive Rental

This denotes that the Management Fees and Government Rates are payable by the Landlord. Unless otherwise negotiated or specified, an Exclusive Rental is the usual arrangement in Hong Kong.

Inventory

This is an itemised list attached to the Tenancy Agreement detailing furniture and fittings supplied with the property. Unless otherwise negotiated or specified, all items provided with the premises are to be left in the property at the end of the Tenancy Term.

Landlord

This may be a single individual who owns one property in a block, or a company which owns several units in various buildings, or a major developer who owns the entire development.

Landlord and Tenant (Consolidation) Ordinance

This is the government ordinance that regulates the relationship between the Landlord and the Tenant, and enforces certain rights and obligations on both parties.

Lease

See Tenancy Agreement.

The Tenancy Agreement is usually prepared by the Landlord's solicitor and each party pays their own solicitor's fee. However, some Landlords insist that the Tenant bear half of the Landlord's solicitor's fee. Any expenses resulting from the Tenant consulting his or her own legal advisors will be his or her own responsibility.

Management Fees

Paid in addition to rent, these cover the cost of staffing, security, cleaning, and lighting of public areas and are generally paid monthly direct to the appointed management company of the building. Unless specified otherwise, the Management Fees are payable by the Tenant.

Occupant

Where the Tenancy is held under a Company Lease, the company is the Tenant and the employee is the Occupant. The Landlord's permission is required to change the Occupant.

Offer Letter

Once a property has been found and negotiations have begun between the Tenant and the Landlord, the Estate Agent will prepare an Offer Letter. The Letter should be signed by both parties, subject to contract and detailing all the main terms and conditions of the Tenancy including Rent, Term, Commencement Date and any necessary Decoration or Renovation works.

Personal Lease

A Personal Lease is where the individual signs the Lease in his or her own name and is responsible for paying the Rent and associated costs. See also Company Lease.

Purchaser

The buyer of a property for sale.

Relocation Allowance

Executives newly arrived from overseas will sometimes be given a Relocation Allowance by their company. This is to assist in the purchase of furniture, soft furnishings, Electrical Appliances and other necessary equipment but may also be used to assist with Decoration and Renovation costs.

Renovation

This usually denotes the state of internal repair of a property. To be fully renovated, a property should have new bathrooms and kitchen, electrical wiring and plumbing, and often new windows and doors. This should not be confused with Decoration which is usually basic.

Rent

This is the agreed monthly amount which remains constant for the Term of the Lease. Rent is normally payable monthly and in advance by the Tenant to the Landlord. Normally it excludes the monthly Management Fees and the Government Rates (payable quarterly).

Rent-Free Period

As part of the negotiations, a Landlord may offer a Rent-Free Period ranging from a couple of days to one or two months. This is much more commonly found in a slow-moving market.

Roof

It is used to refer to a terrace on the roof of a building rather than the ceiling of a unit. A roof terrace can be private (and therefore highly sought-after) or communal and shared by either all the occupants of the building or just those units on the top floor.

Sale and Purchase Agreement

This is the legal agreement drawn up between the Vendor and the Purchaser of a property and is signed in two stages:

1. Provisional Agreement for Sale and Purchase

Once the Vendor and the Purchaser have agreed on all of the terms, the Provisional Agreement is signed. This identifies both parties and the property, states the sale price and the amounts to be paid at various stages, and stipulates the commission to be paid by both parties to the Estate Agent. Upon signing the Agreement, the Purchaser must pay an initial deposit (usually equivalent to 3% of the purchase price) to the Vendor. Once this Agreement is signed, neither party can back out of the sale and purchase except by forfeiting the amount of the initial deposit and Agency Fees, plus the total amount of the Stamp Duty due.

2. Formal Agreement for Sale and Purchase

This is the detailed agreement stipulating all of the terms and conditions of the sale and purchase. This is always drawn up and handled by solicitors as part of the conveyancing procedure.

Security Deposit

This is usually equivalent to two months' Rent (sometimes plus, two months' Management Fees and Government Rates) and is payable by the Tenant to the Landlord upon signing the Formal Tenancy Agreement. The Security Deposit is held by the Landlord for the period of the Tenancy and, provided that the Tenant has upheld all conditions of the Tenancy (such as paying the Rent and bills, and maintaining the property in good condition), is refundable after the Tenancy period. Terms on which the Deposit is refunded should be stated in the Formal Tenancy Agreement; most Tenancy Agreements stipulate that the Security Deposit will be returned within seven to fourteen days after the Tenant moves out to give the Landlord time to check the condition of the property and see that all bills have been settled. Unlike many other countries, in Hong Kong the Security Deposit is repaid without interest.

Security of Tenure or Right to Renew

The existing Tenant will usually have the right to renew the Tenancy for a further term, provided that he or she has fulfilled the Tenant's obligations as stated in the Tenancy Agreement, and that he or she is willing to pay the market rent. The Landlord may take back the property if he or she needs it for his or her own personal use or intends to redevelop. Security of Tenure is strictly controlled by the Landlord and Tenant (Consolidation) Ordinance and is almost always in favour of the Tenant. Disputes are taken to the Lands Tribunal for settlement.

Serviced Apartments

These apartments are fully furnished and fully equipped with items such as bedlinen, towels, crockery, cutlery and kitchen appliances. Maid service is usually provided on a daily basis (with the exception of Sundays and Public Holidays) and includes general cleaning and changing of linen and towels. Rents at Serviced Apartments range from HK$15,000 per month for a small unit to over HK$120,000 for a luxury suite, and Terms range from one month to two years although many developments have a minimum Term of three months. Many developments have a wide range of recreational facilities.

Stamp Duty

A duty payable to Hong Kong Government on the signing of a Lease and generally calculated as 0.5% of the annual Rent, this charge is usually shared equally by the Landlord and the Tenant. A Tenancy Agreement that is not stamped cannot be produced as evidence in a court of law, nor does it protect the Landlord or the Tenant under the Landlord and Tenant (Consolidation) Ordinance and is therefore virtually useless. For a sale, the amount of stamp duty varies from HK$100 to 3.75% of the purchase price and is paid totally by the Purchaser.

Tenancy

A Tenancy or Lease is a legal contract between the Landlord and the Tenant. Normally it lasts for two years.

Tenancy Agreement

This is the formal agreement stipulating all the terms and conditions of the Tenancy. Agreements are usually prepared by the Landlord's solicitor and run to several pages. It is often advisable for the Tenant to have his or her own solicitor to review the Agreement and in this case the Tenant would bear his or her own Legal Fees. Upon signing the Tenancy Agreement, the Tenant must pay the Security Deposit to the Landlord. The Tenancy Agreement is signed by both parties, in duplicate, and must have the Stamp Duty paid.

Tenant

Under a Company Lease, the company is usually termed the "Tenant" whilst the employee is the "Occupant". Occasionally, Landlords may grant a Personal Lease which allows the individual to sign the Tenancy Agreement.

Term

Tenancies in Hong Kong normally last for two years. Sometimes, Landlords will agree to a Break Clause which means that the Tenant can give early notice of termination, usually with two or three months' written notice after 12 or 15 months' occupancy.

Triplex

A three-storey apartment.

Utilities

This is the term used to cover the supply of electricity, gas, water and telephone to a property. Sometimes the Landlord will leave the utility accounts in his or her name (except the telephone account); in this case the bills will arrive in the Landlord's name but must be paid by the Tenant. However, usually the Tenant need to register the utility accounts in his or her own name. To change the accounts to the Tenant's name, the utility companies will ask for a deposit which is usually charged to the first bill and is refundable when the account is closed. All utility companies will ask for a copy of the individual's Hong Kong identity card or the company's business registration certificate.

Vendor

The owner of a property for sale.

Life in Hong Kong is many things, but boring is definitely not one of them. While it is a vibrant place to live in, it is also crowded and sometimes overwhelming. No matter how prepared you are to live here there will be times when you wonder why you ever left home. But there will also be moments of delight and wonder as you discover all this city has to offer.

The settling-in period is the most difficult. We know how frustrating it is if you have no idea where to find basic groceries, how to locate a physician, or how to choose the best school for your children.

Whether you are at work from nine to six (or seven, if you are like most office workers), or you stay at home to look after the kids and home, you will most likely find yourself very busy.

The frenetic pace means that being organised is essential. You don't have time to waste searching for things you need, and that's why we've provided the information in this section. They will lead you to more information about how to make the most of your time in Hong Kong. We cover the basics, education, medical care, household help, and shopping.

The Basics

Hong Kong is in every aspect a modern city. After the return to China in 1997, there is little to suggest that Hong Kong is going anywhere but forward in terms of the services and amenities available to its residents.

The banking system bears the imprint of its British colonial heritage, with a little more bureaucracy than North Americans are accustomed to, but is nonetheless very efficient and easy to use. Most monthly utility and service bills can be settled by phone, through an automated teller machine or by cheque. Many companies also have an auto-pay facility which allows them to debit your account each month.

Utilities are reliable, and it is a simple matter to arrange connections and disconnections. The telephone service provided by Cable and Wireless HKT amongst others is excellent, with many options for home services. Hong Kong has a very high penetration of cellular users, and the service is even available in the underground Mass Transit Railway. There are many Internet service providers to choose from, and the prices for a monthly connection are reasonable.

There are several channels of locally produced television, as well as cable and satellite service. There are English and bilingual radio stations which offer news, music and talk. Hong Kong has two local daily English newspapers, the South China Morning Post and the Hong Kong Standard.

Hong Kong has mail delivery twice a day, including Saturdays. It usually takes only 24 hours for a letter to reach any other part of the territory, and international mail is also very efficient.

Education

Education is taken very seriously in Hong Kong, and students are expected to work long and hard from the age of three. There is strong competition for places in the best schools and kids are often coached for hours every evening by their parents in order to do well on the entrance exams.

Expatriates with children in Hong Kong have plenty of choice in the education field. For a UK-style curriculum the English Schools Foundation (ESF) has 15 schools from primary to secondary level. The Hong Kong International School (HKIS) offers an American educational system. Fees range from about HK$45,000 per year for primary education at the ESF, to HK$118,000 per year for a secondary student attending the HKIS. Students at the HKIS also pay a one-time entry fee of HK$15,000.

There are also schools for students who wish to follow a national curriculum from Canada, France, Germany/Switzerland, Japan and Korea. Expatriate students may also attend schools which offer the local curriculum, and several offer immersion Cantonese programs. The majority of good schools have a waiting list, so it is a good idea to make educational choices a first priority. Your choice of school may also affect your decision about where to live.

Schools Contact Information

Household Help

In Hong Kong, the majority of expatriate households and many local families employ domestic help.

Most families content themselves with one domestic helper, although some executives employ two, or even a couple: the husband may be the cook or driver or attend to any gardening or outside work. The servant's rooms are often surprisingly small, but are generally quite acceptable to the domestic helpers who spend most of their time in the family living quarters.

When employing domestic helpers other than Hong Kong Chinese, strict immigration procedures apply and it is necessary to arrange a formal contract which is provided by and registered with the Immigration Department. These are for a standard two years and the salary scale is fixed by legislation.

Medical Care

Hong Kong has advanced medical care, through both public and private hospitals. Most expatriates prefer to use the private hospitals with their higher standards of care, more personal attention and English-speaking staff. However, the standards at public hospitals are good, and it is easy to see a doctor without an appointment. It can be important to have quick access to a physician, as many Hong Kong employers require a doctor's note for even one day off sick.

Medical insurance is crucial as hospital fees are high. When accepting a posting to Hong Kong it is important to ensure that the company offers an adequate insurance plan. Private insurance can be easily obtained.

The private hospitals most used by expatriates are: Adventist (40 Stubbs Road, Mid-levels, +852 2574-6211), Canossa (1 Old Peak Road, Mid-levels, +852 2522-2181) and Matilda (41 Mt. Kellett Road, the Peak, +852 2849-6301).

All hospitals have 24-hour emergency treatment. Ambulance drivers automatically take a patient to the nearest public hospital unless otherwise instructed. St. John's Ambulance can be reached at +852 2578-1112 on the Island, and at +852 2713-5555 in Kowloon. Dial 999 for emergencies.

Specialist treatment is best obtained by referral from a family physician. The best way to locate a good family doctor is through word of mouth, but the Community Advice Bureau can also help (+852 2815-5444).

Shopping

Hong Kong has been known as a shopping heaven. While this is no longer as true as it once was, it is still possible to conveniently find anything your heart desires here.

There are many food shops which cater for Western tastes. The two big supermarket chains in Hong Kong, ParknShop and Wellcome, have both developed "superstores" including Fusion by ParknShop, Taste, Market Place by Jasons, etc.

These are scattered throughout the city and are stocked with foods that are culturally appropriate for the majority of the neighbourhood's residents. Independent stores and chains such as Olivers, Great and CitySuper also have a wide selection of Western and non-Chinese foods for the expatriate. Grocery delivery is available and the two big chains have extensive Internet ordering facilities.

For other essentials such as clothing and household goods Hong Kong still lives up to its reputation. From the ultra-chic designer shops in the shiny malls of Central to markets such as Stanley, there is something for everyone's taste in clothes. Likewise, household furnishings from all over the world can be found in Hong Kong, and custom-made furniture is relatively inexpensive and beautiful.

Transportation

Public transport will get you anywhere you want to go. If you are fortunate enough to have access to a private car, so much the better, but beware of traffic and labyrinth-like streets in some parts of town.

Modes of transport are legion. Surface transit includes taxis, buses, minibuses, trains, trams and ferries, while underground you will find the efficient Mass Transit Railway, known as the MTR. There is also a dedicated train line that runs to the Hong Kong International Airport, namely the Airport Express.

With so many options available it can be difficult to choose the best way to get to where you need to go. That's why we've prepared this handy guide to all the modes and their ins and outs.

Taxis

Hong Kong taxis are many things, but scarce is not one of them. It is most unusual to wait more than a couple minutes for a taxi to pass by and pick you up, no matter where you are. The exceptions to this ready access are during heavy rains, typhoons and very late at night.

Taxis are colour-coded depending on where they operate. On Hong Kong Island and in Kowloon they are red, on Lantau they are blue and in the New Territories they are green (few parts of the New Territories are served by red urban taxis). As of 2018, the flagfall rate for urban taxis is HK$24 for the first two kilometres and HK$1.7 for every 200 meters afterwards (HK$1.2 after the chargeable amount has reached HK$83.5). You must also pay all tunnel fees and HK$6 per each piece of luggage put in the trunk or oversized baggage in the taxi. Animals, caged or not, also cost HK$5. Tipping is not necessary, but most taxi drivers round the fare up to the nearest dollar.

Flagging a cab is easy: just put your hand out into the roadway and flap up and down a little at waist height. If you find that cabs will not stop, look down. If there is a yellow line running along the curb you are standing in a no-stopping zone. Move to an area with no line and try again. Otherwise, look for a cardboard "out of service" sign in the cab front window. To signal your desire to go to Kowloon from the Island or vice versa make a dipping motion with your hand to indicate going under the harbour.

Some places in Hong Kong usually outside major shopping centres and at tourist attractions have organised taxi queues. Some are more organised than others, however, and occasionally you may have to use your wits and elbows to get into a taxi.

Language is usually not a problem as most Hong Kong cabbies are familiar with the city and environs. If you do have a communication problem the driver will usually get you to talk with the radio dispatcher to sort things out.

The MTR

The Mass Transit railway (MTR) is a safe, clean, air-conditioned and efficient means of getting around on Hong Kong Island, Kowloon and the New Territories. Merged with the former Kowloon-Canton Railway Corporation, the MTR network covers the entire territory with 12 railway lines, including one connecting to the airport and a Light Rail network serving the local communities of Tuen Mun and Yuen Long in the New Territories. The MTR provides also a fleet of buses for convenient feeder services.

Tickets for the MTR are relatively inexpensive with concessions for children and seniors. With a HK$50 deposit you can buy a refillable Octopus card which is read electronically by the turnstiles as you enter and exit the MTR. Cards can be replenished at automatic machines in most station lobbies using either cash or your bank debit card. You can also buy single journey tickets.

Buses/Minibuses

In some ways buses are Hong Kong's lifeblood. From the giant, lumbering double-deckers to the green-topped and red-topped minibuses, there is a bus for every possible destination.

There are three main bus companies operating throughout the territory. The Kowloon Motor Bus company (KMB) serves Kowloon and the New Territories. New World First Bus has routes on Hong Kong Island only. Citybus has routes on Hong Kong Island, The New Territories and Kowloon. All buses accept Octopus card or exact change payment when you board. They stop only at designated zones.

The green minibuses are privately operated, and carry 16-19 passengers on fixed routes. You may request stops anywhere on the route and can flag down a minibus to board. Fares are posted and are paid as you board. Most green minibuses accept Octopus card and cash payment, and drivers sometimes make change. Routes are listed in the government publication, Hong Kong - A Guide to Public Services, available from the government publications centre in Central. Red minibuses travel on varying routes to a specific destination. The fares are posted and you may get on or off where you wish. Pay your fare as you exit. Only a few red minibuses accept Octopus card payment.

Trams

Hong Kong's two tram routes are both institutions. The Peak Tram, while no longer used for transport, was originally constructed before there was road access. It runs from the St. John's Building on Garden Road in Central to the Peak Tower. Now it is used almost exclusively by tourists who take the ride for the novelty and the unique views it affords of Hong Kong. However, monthly commuter passes are still available for those who wish to make use of the tram on a regular basis. (Peak Tram phone: +852 2522-0922).

Hong Kong's other tramway is also an antique – the line opened in 1904 – but this one runs along what used to be the Island's northern shoreline. Its double-decker, un-air-conditioned cars are rickety and often crowded, but at HK$2.3, the flat fare for an adult makes it unbeatable in terms of price. Board the tram at the rear door, and exit from the front, paying your fare in exact change, or with an Octopus card, as you leave.

There are several different turn-around points on the tram's route, but the main line extends from Shau Kei Wan in the east to Kennedy Town in the west, with a branch line which loops around the Happy Valley race track. The trams runs from 6:00am until 12:00 midnight seven days a week. There is also a 'party tram' available for rent.

Ferries

Although Hong Kong Island is linked to the mainland by several tunnels, the territory's many outlying islands have only water access. The many ferries which ply Hong Kong's waters are thus extremely important, and make it possible for the outer islands to sustain significant populations. And, although there are quicker ways across the harbour, Hong Kong's Star Ferry continues to be popular and convenient.

The Star Ferry operates the two busiest routes across the harbour, between Central as well as Wan Chai on Hong Kong Island and Tsim Sha Tsui in Kowloon. Running from 6:30am to 11:30pm, the ride takes about seven minutes and is very inexpensive. There are other cross harbour ferries which travel between North Point ferry pier and Kowloon City, and Hung Hom.

The outlying islands ferry pier is just to the west of the Star Ferry pier, behind the Exchange Square towers in Central. Hong Kong and Kowloon Ferry (+852 2815-6063) operates ferry services from Central to the outlying islands of Peng Chau and Lamma from Piers Four and Six. New World First Ferry Services (+852 2131-8181) has services to Cheung Chau and Mui Wo on Lantau which leave from Piers Five and Six. Park Island and Discovery Bay ferries run from Piers Two and Three respectively at present.

Private Autos

While owning a car in Hong Kong is not essential, given the city's compact size and excellent transit, there are often good reasons to do so. Many people with cars opt to hire a professional driver who deals with the annoyances to traffic and finding a place to park. Also, since traffic moves on the left, driving in Hong Kong is an adjustment for many foreigners.

The costs of owning a car depend on the type and age of the vehicle. Registration fees are based on the taxable value of the car, while the annual license fee is based on engine size and type of fuel used. For a private car the registration fee is 40-60% of the value. Fuel prices in Hong Kong are among the highest in the world. Parking is scarce, even in large apartment complexes, so it is a good idea to decide about car ownership before choosing a place to live in. Otherwise you might find yourself with an auto and nowhere to put it.

Obtaining a Hong Kong driving license is relatively easy for expatriates with a license issued in one of the approved countries. For new learners, the driving age is 18. The Hong Kong driving test comes in three parts - a written exam, a practical test on a closed road and a road test.

Overview

There is no excuse for boredom in Hong Kong. The variety of choice, whether for culture, recreation or pure pleasure, is astounding. As a gateway where East meets West, Hong Kong has a unique blend of activities available from each culture. Whether you prefer European opera or canto-pop, Oriental ceramics or art from the fringe, you will find something to suit. And for a newcomer, witnessing one of the many Chinese festivals is always a memorable event.

If your interests lie in the great outdoors, Hong Kong will not disappoint. Hidden behind the facade of steel and glass towers, over 40% of the territory is actually parkland. Walking trails criss-cross the main island, while the New Territories and outlying islands are heavens for the nature-lover. There are also myriad activities for the younger set. Hong Kong boasts great museums, extracurricular activities and sports opportunities for children and teens.

And when you are done being entertained, or finish a hike famished and in need of refreshment, Hong Kong comes into its own. With thousands of restaurants from the seaside seafood specialists on Lamma Island to the glitzy and glamorous hotel-top dining rooms, nobody need go hungry. Practically every international cuisine is represented here, from the local Cantonese and its Dim Sum specialities to American meat, European flair and Southeast Asian spices.

One of the most obvious signs of Chinese culture are the numerous temples scattered throughout the city. With their hanging coils of incense and often elaborate offerings, these are interesting places to visit.

For organised cultural activities there are numerous major venues which offer professional performances of Chinese opera, dance, Western opera, classical music, theatre and much more. Hong Kong has a Philharmonic Orchestra, ballet troupe and Opera Society, all of which perform to international standards. The city also hosts many touring productions and concerts. Major productions are well-advertised in the local media long before opening night. It is wise to book early as tickets can sell out quickly.

If you like movies, then Hong Kong is your town. There are six competing chains offering theatres in every neighbourhood. Western films tend to run in English with Chinese subtitles, and Chinese movies with English subtitles. Tickets can be booked ahead online and can then be picked up from an automated dispenser at the door.

Festivals

Hong Kong's many Chinese festivals are one of its great attractions, and not simply because you get the day off work. Most festivals revolve around families getting together and spending time celebrating. Most of them are noisy, exuberant and colourful. It is well worth the effort to get involved, even if only as a spectator, in at least one of the festivals listed below.

Lunar New Year: Around end of January and the beginning of February is Lunar New Year (also known as Chinese New Year). It is one of the most important festivals, as it is the time to set yourself up properly for the coming year. Housecleaning, buying new clothes, getting a haircut, these are all done before the new year arrives. People buy flowers from vast, specially arranged flower markets around the city (the biggest one is held in Victoria Park, between Causeway Bay and North Point), which is a must-go during that time of year. There are also huge fireworks displays, and people give Lai See, or lucky money to children and employees. Learn the expression "Kung Hei Fat Choi", for everyone will be saying it, and you should return the greeting.

Ching Ming: Ching Ming is the spring grave-sweeping festival in April, where families head to the cemeteries and spruce up their ancestors' grave-sites and make offerings that will ensure the dead have sufficient money and food in the afterlife.

Tuen Ng: Hong Kong celebrates this festival with Dragon Boat races. The tradition began in the third century BC, apparently after fishermen tried to rescue a despondent government official who had thrown himself in the river. Now this is an international event for Hong Kong, attended by thousands on the fifth day of the fifth month of the traditional Chinese calendar. Apart from the Dragon Boat races, making and eating sticky rice dumplings is another essential part in celebrating the festival.

Mid-Autumn Festival: Falling in September or October, it is a harvest festival with families and friends coming together, similar to the Western Thanksgiving. Children are indulged in this festival, going out with their parents with beautiful lanterns to watch the full moon rise. Traditional moon cakes are eaten.

Chung Yeung: On the ninth day of the ninth lunar month (usually October) traditionally people climb to the highest point they can find. The festival had no great early significance until the British came to Hong Kong. Since then it has grown in popularity, so that now the hiking trails are crowded for Chung Yeung. Some also go grave-sweeping on this day.

Recreation

Hong Kong's unique environment makes for many recreational opportunities. With 40% of the land devoted to country parks, and the territory's many beaches and islands, it is ideal for sports enthusiasts. And the climate is generally pleasant enough that outdoors pursuits are enjoyed year-round.

Hiking is by far the easiest recreational activity to choose in Hong Kong. Trails range from very easy, paved roads to strenuous, steep and rocky scrambles to the tops of rugged mountain peaks. There are vast nature reserves in the New Territories. Maps are available from the Agriculture and Fisheries Department and from outdoor outfitters, and the Exploring Hong Kong's Countryside by Edward Stokes, is available from the Hong Kong Tourist Association.

A day at the beach is another favourite Hong Kong pastime. Nestled in lovely coves, the beaches offer warm water for swimming or water sports, and plenty of sand for the sun-worshipper to stretch out on. Water quality levels are posted at the beach. It is best to avoid the beach just after a rain when contamination increases.

Boating is also extremely popular, whether the craft is a jet-ski, sailboat or private yacht. A very pleasant weekend jaunt is the junk trip for a picnic and a swim to an outlying island.

Children and Teens

While all of the above activities will appeal to many children, they also have the choice of tailor-made recreation. The city is full of playgrounds and public sports fields with all manner of equipment designed to keep kids busy. Older kids can join in the spontaneous basketball and football games which spring up every evening and weekend.

For a somewhat educational experience there are parks and museums like the Science Museum and Space Museum (which has an Omnimax movie theatre), Ocean Park, Wetland Park and Kadoorie Farm. The latter has a huge variety of animals, wild and domestic. You must make reservations to visit (+852 2488-1317).

There are numerous clubs and teams which kids can join. Scouting is very popular and provides an outlet on weekends. After-school activities are practically required, and include sports and cultural lessons, language instruction and charity work.

While school is out it is harder to keep older kids occupied, but there are programs like Outward Bound operating in Hong Kong, which give them a challenge and a chance to explore on their own. Younger kids can attend summer school classes, which are not as academically oriented as regular school.

Social Athletics Club

Hong Kong has many clubs for many purposes. Below is a partial listing of some of the larger organisations in the territory.

Aberdeen Boat Club
20 Shum Wan Road, Aberdeen, Hong Kong
Tel: +852 2552-8182

Aberdeen Marina Club
8 Shum Wan Road, Aberdeen, Hong Kong
Tel: +852 2552-8182

American Club Country Club
28 Tai Tam Road, Hong Kong
Tel: +852 2813-3200

American ClubTown Club
47/F, Exchange Tower Two, Central, Hong Kong
Tel: +852 2842-7400

China Club
13/F Old Bank of China Building Bank Street, Hong Kong
Tel: +852 2521-8888

Clearwater Bay Golf and Country Club
Lot 227 241
Tel: +852 2335-3788

Craigengower Cricket Club
188 Wong Nai Chung Gap, Happy Valley, Hong Kong
Tel: +852 2577-8331

Discovery Bay Golf Club
Discovery Bay Lantau Island Hong Kong
Tel: +852 2987-7273

Dynasty Club
Southwest Tower, Convention Plaza1 Harbour Road, Wan Chai, Hong Kong
Tel: +852 2824-1122

Foreign Correspondents' Club
2 Lower Albert Road Central, Hong Kong
Tel: +852 2521-1511

HK Football Club
Sports Road Happy Valley, Hong Kong
Tel: +852 2882-7470

Helena May
35 Garden Road Central Central, Hong Kong
Tel: +852 2522-6766

Hong Kong Club
1 Jackson Road, Central, Hong Kong
Tel: +852 2525-8251

HK Country Club
Deep Water Bay, Hong Kong
Tel: +852 2552-4488

Hong Kong Golf Club
19 Island Road Deep, Water Bay, Hong Kong
Tel: +852 2812-7070

Hong Kong Cricket Club
137 Wong Nai Chung Gap Road, Hong Kong
Tel: +852 2574-6266

Hong Kong Jockey Club
25 Shan Kwong Road
Happy Valley, Hong Kong
Tel: +852 2966-1333

Kowloon Cricket Club
10 Cox's Road, Kowloon
Tel: +852 2367-4141

Ladies Recreation Club
10 Old Peak Road Mid-levels, Hong Kong
Tel: +852 2522-0151

Royal Hong Kong Yacht Club
Kellett Island, Causeway Bay, Hong Kong
Tel: +852 2832-2817

South China Athletic Association
Caroline Hill Road, Causeway Bay, Hong Kong
Tel: +852 2577-4427

YMCA
4/F., Administration Building, 23 Waterloo Road, Kowloon
Tel: +852 2771-9111

YWCA
1 MacDonnell Road, Central, Hong Kong
Tel: +852 3476-1300