Before diving into property searches, clarify your main objective. Are you purchasing for long-term capital appreciation, as a rental investment, or as your primary residence? Your intended use will influence your choice of location and budget.

Mortgage Considerations

If you require financing, it’s advisable to consult your bank or a mortgage broker to determine your borrowing allowance. Mortgage pre-approvals are available and typically expire after a fixed period.

Key factors affecting mortgage approvals include:

• Property age and location
• Your existing property holdings
• The current loan-to-value (LTV) ratio is set by the Hong Kong Monetary Authority (HKMA). As of October 16, 2024, the maximum LTV is 70% for all residential properties.

You should also account for additional costs such as stamp duties (refer to our article – Hong Kong Property Market Update: Major Stamp Duty & Mortgage Policy Changes in the 2024/2025 Budget), and renovations.

Tip: Our team at Jade Land Properties can connect you with financial institutions for mortgage assistance.

Several factors influence property value and suitability:

• District & Pricing: Hong Kong Island properties command premium prices due to limited supply and great demand.
• Building Age: Older buildings (over 60 years) may face mortgage restrictions.
• Views & Outdoor Space: Sea-view apartments, rooftops, and terraces often come at a premium.
• Feng Shui Considerations: Properties with views of cemeteries, homes linked to unlucky numbers such as the number 4, or residences where deaths have occurred (often labeled as “haunted houses”) may be viewed as less desirable, potentially affecting property values.
• Proximity to Amenities: Schools, hospitals, shopping, transportation hubs, and building facilities such as gyms, swimming pools, and clubhouses can impact property value.

Explore our listings online and connect with our team to find properties that match your preferences. With over 30 years of experience in the Hong Kong real estate market, Jade Land Properties offers expert insights to help you secure the ideal property. Our database includes a wider selection of properties than those displayed on our website, giving you access to even more opportunities. Speak with our team directly, and we will personally handpick the most suitable options based on your requirements.

A professional real estate agent will provide valuable market insights and streamline the buying process. Hong Kong agents are required to be licensed by the Estate Agents Authority (EAA) and can represent both buyers and sellers. Standard commission rates are 1% of the purchase price, payable by both parties.

Once you’ve found a suitable property, the next steps include:

1. Property Valuation: Your bank will assess whether the agreed purchase price aligns with market value. Our team can assist in coordinating a bank valuation.
2. Offer Submission: Your agent will present your offer, including proposed price and timeline (typically a 2-month completion period).
3. Land Search Verification: Your agent will obtain a Land Search report from the Land Registry to confirm ownership and any encumbrances. The purchaser should request their agent to explain the information in the Land Search.
4. Drafting the PASP: This legally binding document is typically prepared by your real estate agent and signed by both buyer and seller.
5. Initial Deposit Payment: A 5% deposit is paid to the vendor’s solicitor.
6. Appoint a Real Estate Lawyer: The purchaser will need to appoint a solicitor to handle the transaction and conveyancing documents. The lawyer will assist with contract review, legal compliance, due diligence, and property transfer. Jade Land Properties can recommend reputable legal professionals based on previous client experiences.

6. Mortgage Application: At this stage, you will need to formally apply for a mortgage loan. The required documents typically include the Provisional Sale & Purchase Agreement, a copy of your HKID, proof of income, and any additional documents requested by the bank.
7. Understanding Cancellation Terms: If either party withdraws after signing the PASP but before the Formal Sale & Purchase Agreement (S&P), the following penalties apply:
   • If the buyer fails to complete the purchase in accordance with the terms of the PASP, the deposit will be forfeited.
   • If the seller fails to complete the purchase as per the PASP terms, they must refund the deposit along with an additional sum equal to the initial deposit.
   • Both parties remain responsible for the agent’s commission.

The Formal Sale & Purchase Agreement (S&P) is the final legally binding contract between the buyer and the vendor.

Approximately 14 days after signing the Provisional Agreement for Sale & Purchase (PASP), the buyer signs the Formal S&P Agreement, which is prepared by the vendor’s solicitor.

• At this stage:
  • The buyer pays an additional 5% deposit
  • Stamp duty payments are due, and the transaction is officially registered with the Land Registry.

Mortgage Process:

• Once the bank approves the mortgage application, it issues a facility letter outlining the loan terms.
• The bank instructs the buyer’s solicitor to prepare the relevant mortgage documents for signing.
• The buyer’s solicitor arranges the mortgage drawdown in preparation for the completion of the purchase.

Completion typically takes place 2 months or up to 3 months (subject to negotiation) after signing the Provisional Agreement for Sale & Purchase (PASP), subject to negotiation. The final steps include:

• Pre-Closing Inspection: The buyer conducts a final inspection to verify the property’s condition.
• Mortgage Drawdown & Assignment Execution: The buyer finalizes the mortgage drawdown and signs the Assignment of Property.
• Final Payments: The buyer pays the remaining purchase balance, legal fees, and agent commission.
• Key Exchange: This is typically handled through solicitors.
• Legal Transfer:
  • On completion day, the buyer’s solicitor sends the balance purchase price and executed assignment to the vendor’s solicitor.
  • The vendor’s solicitor returns the executed assignment and, if applicable, documents related to the vendor’s previous mortgage.
• Title Deed Transfer: After completion and registration, the property title deeds are transferred to the mortgage lender for safekeeping.

Navigating the purchasing process can still be complex. Having the right team—your real estate agent, mortgage consultant, and lawyer—ensures a smooth transaction. Whether you’re a local buyer or an overseas investor, Jade Land Properties is here to guide you every step of the way.

Need expert assistance? Contact our team at Jade Land Properties to start your property journey today.

Disclaimer: This guide offers a general overview of the property purchasing process in Hong Kong and should not be considered legal or financial advice. For personalized guidance, please consult a professional. Jade Land Properties (HK) Limited and the respective vendor make no warranty regarding the completeness or accuracy of the information provided. This content does not constitute an offer or form part of any contract. If you have any doubts, we strongly recommend seeking legal advice before making a purchase decision.