Hong Kong new homes, from overseas

Buying a Hong Kong new home from overseas — with your mortgage worked out first

This page is for buyers and investors in the UK and across Europe who are looking at a Hong Kong first-hand (new-build) home: Hong Kong people living abroad, and investors who are not Chinese. The sales process for a new home moves fast and the deposit is paid early, so the sensible order is to work out your financing before you commit, not after.

Talk to us Using overseas income

Why financing comes first

The deposit is paid before the loan is approved

On a first-hand purchase the money goes in at signing, while the bank has typically not yet approved anything. That is the whole reason to do the sums first.

Preliminary deposit

On a first-hand purchase the buyer usually pays a 5% preliminary deposit when signing the Preliminary Agreement for Sale and Purchase (PASP).

5 days

To the formal agreement

The formal Agreement for Sale and Purchase must follow within 5 working days. The time to arrange finance is shorter than most buyers expect.

At risk

If you cannot proceed

If the buyer cannot proceed, that deposit can be forfeited. It is the cost of discovering a financing problem too late.

So affordability and lending should be checked before you choose a unit: how much a bank is likely to lend against your income, how much cash that leaves you to find, and whether you can still carry the purchase if the valuation falls short.

What we check before you commit

Six things that decide whether the purchase works

Income

How banks treat overseas income

Many banks discount income earned outside Hong Kong, and practice varies from bank to bank. The same applicant can come out with materially different borrowing capacity depending on where the file is put. We map this before you choose a unit, not after.

Using overseas income →

Loan-to-value

The 70% general cap

For residential property, the general loan-to-value cap is 70%. Whatever the lender, plan on funding the other 30% yourself.

Mortgage insurance

Usually not available to overseas investors

Mortgage insurance usually needs the buyer to occupy the property as their own home, so it is generally not available to overseas investors. Plan for at least a 30% down payment, plus stamp duty and other costs of purchase.

Stamp duty

Standard scale since 28 February 2024

Buyer’s Stamp Duty and the extra stamp duty for non-permanent residents are no longer charged. Overseas buyers pay the standard ad valorem scale, like everyone else.

Stamp duty after 2024 →

Payment plans

Cash payment, stage payment, developer financing

Different payment plans move cash out of your account at different times, and developer financing changes the cost of the whole purchase. Compare the total cost over the life of the loan, not the headline.

Valuation

Valuation risk at completion

On an off-plan purchase the bank values the flat at completion, often long after you signed. That valuation can come in below the price you agreed, leaving you to cover the difference in cash. Build a margin for it into the plan.

How buying from overseas works

The steps, at a high level

01

Registration of intention

The developer’s sales process usually starts with registering your interest. Do this once you know your budget, not before.
02

Unit selection

Selection is by the sales arrangements published for that development. Your financing ceiling should already be settled by now.
03

PASP

Signing the Preliminary Agreement for Sale and Purchase, with the preliminary deposit (usually 5%) paid.
04

Formal agreement

The formal Agreement for Sale and Purchase, due within 5 working days of the PASP.
05

Mortgage approval

The bank’s formal approval on your application and the property. It is subject to the bank’s own assessment and is never assured in advance.
06

Completion

Payment of the balance and handover. For off-plan purchases this can be some time away, so your circumstances and the bank’s valuation may both have moved.

What varies by development

Arrangements for buyers who are not in Hong Kong, such as acting through an authorised representative or under a power of attorney, vary from one development to the next. They are set by the developer and the lawyers involved, not by us, and we do not promise remote signing. We confirm what is possible for each project before you rely on it.

Who we are

A Hong Kong licensed estate agency and mortgage referral firm

Mortgageology is a Hong Kong licensed estate agency company (EAA licence C-105953) and mortgage referral firm. The founder is based in the UK, working in your time zone, and is a former mortgage manager at Hong Kong’s top-3 banks: 15 years, 3,000+ cases, HK$10bn+.

There is no fee to you for the mortgage referral. The bank pays the referral fee, and we set out how we are paid in full before you sign anything.

How we get paid If you are a non-permanent resident

Buy-to-let returns

How the numbers work for a buy-to-let

Think in ranges, not a single number

The return on a flat you let comes from rent, less running costs and mortgage interest, plus (or minus) any change in the price. Below are typical ranges, so you have an idea of the shape of the numbers before you look at real cases.

Price levels

Second-hand average prices

HK$ per sq ft saleable area, rounded

New Territories: HK$10,000–12,000
Kowloon: HK$12,000–16,000
Hong Kong Island: HK$14,000–21,000

Larger flats and better buildings sit at the top of each range. First-hand (new) homes are usually priced above comparable second-hand flats nearby, by an amount that varies widely by project. Prices rose about 7% in the first eight months of 2026 but remain about 20% below the 2021 peak (Rating and Valuation Department index). This is not a forecast.

Rents

Monthly rent levels

HK$ per sq ft saleable area, per month

New Territories: about HK$25–36
Kowloon: about HK$38–49
Hong Kong Island: about HK$40–53

Smaller flats command more per sq ft. The Rating and Valuation Department rental index reached a record high in 2026, up about 5% in the first eight months.

Gross yield

Annual gross rental yield

Annual rent ÷ price, before any costs

about 2.5%–4%

Under about 430 sq ft: around 3.5%
430–750 sq ft: around 3.1%
Larger flats: about 2.3%–2.8%

Indicative yields published by the Rating and Valuation Department, August 2026. Sizes are saleable area.

Costs

How much of the rent do you actually keep?

One-off costs

Ad valorem stamp duty: HK$100 up to HK$4 million; about 2.25% to 3% for flats priced at HK$6–9 million. Since February 2024 there are no extra duties for non-permanent residents or foreign buyers.
Legal fees.
Estate agency commission: customarily about 1% on a second-hand purchase; on a first-hand purchase there is usually none for the buyer.
Furnishing.

Holding costs, each year

Rates (5% of rateable value) and, where applicable, government rent (3% of rateable value). Whether the owner or the tenant pays depends on the tenancy.
Management fees: typically about HK$2.5–5 per sq ft a month.
Property tax: 15% of the net assessable value, which is rent less rates paid by the owner, less a 20% statutory allowance. That works out at roughly 12% of rent.
Letting commission: customarily half a month’s rent.
Repairs and vacancy.

Together these usually take from about a fifth to nearly half of the rent, depending on who pays rates, government rent and management fees under the tenancy. At a mid-range rent that leaves a net yield of about 1.8%–2.7% of the price.

Mortgage

Does borrowing improve the return?

Loan-to-value is capped at 70% for residential property, including flats bought to let. The HKMA no longer applies an extra reduction for borrowers whose income is mainly outside Hong Kong, but individual banks may apply their own, stricter policies, so each case needs checking. Applicants usually need to be in Hong Kong to sign.
Mortgage insurance (for higher loan-to-value ratios) is for owner-occupiers and is not available for buy-to-let.
Current mortgage rates are roughly 2.9%–3.5% for fixed-rate or capped HIBOR plans. An uncapped HIBOR plan would be about 4% today.

Key point

When the net yield (about 1.8%–2.7%) is below the mortgage rate, borrowing more lowers the cash return. At 70% loan-to-value, the cash return after interest is roughly −3% to +2% a year on the cash you put in, depending on the mortgage rate and costs, before any price change. Repaying principal as well usually needs a monthly top-up from other income. The investment case then rests on rent growth and price movement, neither of which is guaranteed.

Worked example

Illustrative, not advice

A two-bedroom flat in Kowloon

Assumes a HK$7 million, two-bedroom flat of about 500 sq ft saleable area in Kowloon. This example is not advice.

Item	Range
Monthly rent	HK$16,500–23,000
Gross yield	2.8%–3.9%
Holding costs	about 20%–47% of rent
Net yield (at a mid-range rent)	1.8%–2.7%
Equity needed at 70% LTV (deposit, stamp duty, fees and furnishing)	about HK$2.45 million
Interest at 3.25% on a HK$4.9 million loan	about HK$159,000 a year
Cash after interest (at 3.25%, before any price change)	about −HK$36,000 to +HK$27,000 a year (about −1.5% to +1.1% of the cash put in)
Monthly instalment including principal (30 years, 3.25%)	about HK$21,300

A note on tax

Hong Kong property tax applies wherever the owner lives. Owners living in the UK generally cannot deduct mortgage interest, because that relief requires electing personal assessment, which is for Hong Kong residents. UK residents are also taxed in the UK on foreign rental income, so speak to a UK tax adviser.

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Through our partners we can share actual listing, transaction and rental data for the areas you are considering, and work out the mortgage and monthly cash flow on your budget.

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Sources: Rating and Valuation Department (provisional figures, June to August 2026), Inland Revenue Department, Hong Kong Monetary Authority. The figures shown are general market ranges for information only. They are not investment, tax or lending advice, and are not a forecast of prices or rents. Actual figures vary by property, tenancy and individual bank approval.

This page is general information, not advice. Lending decisions are made by banks, and every application remains subject to the bank’s own assessment and approval. Loan-to-value limits are the prevailing HKMA supervisory requirements; individual bank credit policy is not published and differs between lenders. Sales arrangements, deposits and timelines differ by development and should be confirmed from the developer’s own documents and your own lawyer. Information accurate as of October 2026.