Hong Kong’s property market remains one of the world’s most dynamic and expensive, offering investors a unique blend of Eastern and Western influences, stunning views, and potentially strong returns.
Our guide explores the most promising areas for real estate investment, including both traditional luxury districts and up-and-coming neighborhoods in Hong Kong that offer value opportunities.
The Peak: Hong Kong’s Crown Jewel
No discussion of Hong Kong real estate can begin without mentioning The Peak.
Historically home to the city’s tai-pans (business executives) and elite, The Peak continues to command the highest property prices in Hong Kong.
Properties here typically range from HK$80,000 to HK$130,000 per square foot, with some exceptional properties commanding even higher prices.
What makes The Peak special is its strict building height restrictions, ensuring that most properties are either townhouses or low-rise apartments, preserving both exclusivity and views.
A typical 3,000-square-foot property here can easily cost upwards of HK$300 million, with rental yields averaging between 2% and 2.5%.
Mid-Levels: The Professional’s Paradise
Mid-Levels represents an excellent balance between luxury living and practical convenience.
Located halfway up Victoria Peak, this area attracts wealthy expats and locals alike due to its proximity to Central’s business district and the convenience of the Mid-Levels escalator system.
Property prices here typically range from HK$35,000 to HK$60,000 per square foot, with rental yields averaging 2.5% to 3%.
A 1,500-square-foot apartment might cost between HK$45-80 million, depending on the exact location and view quality.
No doubt, Mid-Levels ranks among the most expensive places to buy an apartment in Hong Kong – and even the world!
Mid-Levels attracts both expat and local professionals due to its proximity to Central’s business district and the convenience of the iconic escalator system.
The area is particularly attractive to investors due to its consistent tenant demand from young professionals and small families.
The presence of the escalator system, which runs from Mid-Levels to Central, adds significant value to properties along its route.
Repulse Bay and Southside: Resort Living
For those seeking a beachside lifestyle while maintaining proximity to the city center, Repulse Bay and the Southside areas offer an attractive proposition.
These areas feature a mix of luxury high-rises and townhouses, most with commanding views over the South China Sea.
Property prices in Repulse Bay typically range from HK$45,000 to HK$70,000 per square foot, with rental yields around 2.3-2.8%.
The area particularly appeals to families and those seeking a more relaxed atmosphere while maintaining access to luxury amenities.
Southside has seen significant infrastructure improvements in recent years, including better transportation links, which has helped maintain property values.
Meanwhile, the upcoming South Island Line extension is expected to further boost prices in this area.
Kowloon Tong: Traditional Luxury
Kowloon Tong offers a different flavor of luxury, characterized by low-density housing and proximity to prestigious schools.
This area has traditionally been favored by wealthy local families and is increasingly attracting international investors.
Property prices here range from HK$30,000 to HK$50,000 per square foot for apartments, with houses commanding significantly higher prices.
Rental yields tend to be slightly higher than Hong Kong Island at 3-3.5%, partly due to strong demand from families seeking proximity to international schools.
The area’s main advantage is its combination of space, privacy, and connectivity, with multiple MTR lines providing easy access to both Hong Kong Island and the New Territories.
Emerging Areas: West Kowloon and Tseung Kwan O
For investors seeking growth potential, West Kowloon and Tseung Kwan O present interesting opportunities.
West Kowloon, home to the International Commerce Centre and the new cultural district, has seen significant price appreciation in recent years.
Property prices in West Kowloon range from HK$25,000 to HK$45,000 per square foot, with rental yields around 3-3.5%. The area benefits from excellent transportation links and continuing development of cultural amenities.
Tseung Kwan O, while further from the traditional central business district, offers newer developments with modern amenities at more accessible price points (HK$18,000-30,000 per square foot).
Tseung Kwan O is the up-and-coming area in the southeastern New Territories equipped with modern amenities. The area boasts many family and pet-friendly facilities, and promises suburban lifestyle to its residents.
Rental yields in Tseung Kwan O can reach as high as 4%, which makes it attractive for investors seeking better returns.
Hong Kong Property Market Trends
If you’re buying any type of real estate in Hong Kong, here are several factors that deserve careful consideration:
Stamp Duty: Non-permanent residents face additional stamp duties of 30% on property purchases, significantly impacting investment returns. This policy aims to cool speculation but also affects genuine long-term investors.
Market Cycles: Hong Kong’s property market can be volatile, with prices significantly influenced by mainland Chinese investment flows, interest rates, and local political developments. Understanding these cycles is crucial for timing investments.
Rental Market: While rental yields in Hong Kong are generally low compared to other major cities (2-4% typically). Still, high occupancy rates and strong tenant pool, particularly in prime areas, provide stable income potential for Hong Kong apartments.
Future Development: Major infrastructure projects, including the Northern Metropolis development plan and continued integration with the Greater Bay Area, may shift property values and create new investment opportunities.
Where’s the Best Place to Buy an Apartment in Hong Kong?
Hong Kong’s real estate market continues to offer compelling investment opportunities across different price points and locations.
While traditional luxury areas like The Peak and Mid-Levels maintain their allure and stability, emerging areas present opportunities for potentially higher returns.
For investors who are looking to enter the market in 2025, you should absolutely consider an apartment’s location.
Don’t just consider the district either, but also the specific street and other factors such as its proximity to an MTR station. Think about both the micro and the macro levels!
In conclusion, Hong Kong’s combo of limited land supply and strategic position in Asia will support the city’s long-term property values, despite the recent market correction.
FAQs: Neighborhoods in Hong Kong
What's the Cheapest Neighbourhood in Hong Kong?
Tseung Kwan O is one of the more affordable areas in Hong Kong, especially for newer developments. Property prices here range from HK$18,000 to HK$30,000 per square foot, making it a more accessible option for investors or residents looking for modern amenities at a lower cost.
The area is also known for its suburban lifestyle, family-friendly facilities, and relatively high rental yields, making it attractive for both living and investment.
Where is the Most Expensive Place to Live in Hong Kong?
The Peak is by far the most expensive neighbourhood in Hong Kong. Historically home to the city’s elite, properties here command prices ranging from HK$80,000 to HK$130,000 per square foot, with some exceptional homes exceeding even that. '
Meanwhile, the Peak's exclusivity is maintained through strict building height restrictions which ensure stunning views and a luxurious living environment.
How Much Does an Apartment in Hong Kong Cost?
Apartment prices in Hong Kong vary significantly depending on the location. In prime areas like Mid-Levels, prices typically range from HK$35,000 to HK$60,000 per square foot.
A 1,500-square-foot apartment in this area could cost between HK$45 million and HK$80 million, depending on the view and exact location. In more affordable areas like Tseung Kwan O, prices can be as low as HK$18,000 per square foot.
Which Area in Hong Kong has the Highest Rental Yields?
Tseung Kwan O offers some of the highest rental yields in Hong Kong, with returns reaching up to 4%.
This makes Tseung Kwan O an attractive area for investors seeking better rental income compared to more traditional luxury districts, where yields typically range between 2% and 3%. The area’s modern developments and family-friendly amenities contribute to its strong rental demand.
