To buy or rent in Hong Kong? Tipping point guide to 93 neighbourhoods shows the way
The exorbitant cost of property in Hong Kong leaves potential first-time buyers with a question: at what point does buying a flat become cheaper than renting it? A new guide to the tipping point between the two may help
A common quandary for residents in Hong Kong is whether it makes more sense to buy or rent a flat. On one hand, there’s the perception that paying rent is like throwing money down the drain. On the other hand, the cost of entering the market and decades tied up in mortgage repayment can be a huge financial burden.
Watch: Why is Hong Kong housing so expensive?
It found 44 areas of Hong Kong that have a tipping point of just two to four years for Hong Kong permanent residents. Among these neighbourhoods are far-flung Tuen Mun and Tung Chung. There are parts of Hong Kong Island, including Chai Wan and Aberdeen, but also areas that have became popular with expats, such as Kennedy Town and Sai Ying Pun. The upscale residential enclaves of Hong Kong Gold Coast and Discovery Bay also fall into this category.
Meanwhile, places such as nightspot SoHo and prime shopping area Causeway Bay have a tipping point of five to eight years, according to the data. In North Point and Tsim Sha Tsui, it is nine to 13 years.