Why is Being an Expat in Hong Kong So Expensive?

Making a life as an expat in Hong Kong can be exciting but also expensive. Hong Kong’s high cost of living – one of the highest in the world – can be daunting, especially when you first get there. But why is being an expat in Hong Kong so expensive? This guide will help answer this question so that expats can understand what to expect regarding budgeting in Hong Kong.

Overall Cost of Living

Hong Kong is one of Asia’s most expensive cities, second only to Tokyo in terms of the cost of living. To give some perspective, Accommodation costs alone are four times higher than in Singapore, for example, and on average about two or three times higher than other cities in the world. This is due to the extremely high demand for residential areas in Hong Kong, combined with the limited space available (the majority of the developments are high rises). According to the Numebo Cost of Living Index, the overall cost of living in Hong Kong is 43.68% higher than in New York City.

Accommodation

Renting an apartment in Hong Kong is by far the biggest expense for expats. The average price per square meter for high-end areas in Central or Southern District is around HKD 376,00 (USD 48000) per square meter, compared to about HKD 245,00 (USD 31500) in other districts. For instance, a 50-square-meter apartment in Central or Southern District would cost over HKD 18,800,000 (USD 2,400,000). For some reference, the monthly rent for a small studio apartment in Jardines Lookout or Sunbeam Terrace can cost as much as HKD 80000 (USD 10300).

Food

The food costs in Hong Kong vary significantly depending on where you shop and what type of food you buy. In general, ingredients for cooking at home are quite cheap but eating out regularly can be expensive. For more specific numbers, Numbeo states that a basic lunch consisting of a soup and one main dish could cost around HKD 80 (USD 10). In nicer restaurants, a three-course dinner for two people with alcohol could cost over HKD 900 (USD 115).

Transportation

Public transportation costs in Hong Kong are fairly low compared to the overall cost of living. A single ticket for MTR costs around HKD 7 (less than USD 1) and monthly passes are available for public transportation including buses, MTR and trams. Taxis rates vary depending on the taxi company and time of day; however, they are generally quite affordable.

Entertainment

The entertainment costs in Hong Kong vary widely depending on what type of activities you prefer. Attending the cinema could cost around HKD 80 (USD 10) while joining a gym could cost HKD 1000 (USD 130) per month. If you prefer to hang out with friends at bars and restaurants, an average dinner for two with drinks can cost around HKD 300 to 400 (USD 40 -50).

Conclusion

In conclusion, being an expat in Hong Kong can be expensive due to the high cost of living, especially regarding accommodation. However, prices for food, transportation and entertainment are relatively low compared to other cities in Asia. To save some money, it’s best for expats to try and cook at home instead of eating out regularly, as well as using public transportation wherever possible. Nonetheless, with careful budgeting and planning ahead, expats will find that it’s possible to manage their finances while enjoying all that Hong Kong has to offer.

Insider’s Guide: Exploring Hong Kong on a Budget

Are you planning a trip to Hong Kong but concerned about the high costs of living as an expat or a tourist? Hong Kong is a bustling metropolis that features world-famous landmarks and attractions, an array of dining options, a rich cultural heritage, and a booming financial hub. However, most people are put off by the high costs of living and traveling in the city. In this guide, we will discuss how to make the most of your trip to Hong Kong without breaking the bank.

Local Attractions

Hong Kong has an abundance of attractions that cater to different interests and ages. For travelers on a budget, the best way to experience the city’s landmarks and attractions is through walking tours. Some of the must-see attractions include:

1. Victoria Peak – a panoramic view of Hong Kong and the harbor from the highest point on the island.

2. The Big Buddha – a large bronze statue of the Buddha, situated at Po Lin Monastery, offering breathtaking views of Lantau Island.

3. Hong Kong Disneyland – a world-famous amusement park with a unique blend of Eastern and Western cultures.

4. Tsim Sha Tsui Promenade – a scenic avenue along the Victoria Harbor ideal for a leisurely stroll or a picnic.

Dining Spots

Hong Kong is a foodie’s paradise, with a diverse range of culinary options, from street food stalls to Michelin-star restaurants. Exploring the city’s hidden eateries and local restaurants is a great way to experience the authentic cuisine at a reasonable price. Some of the budget-friendly dining spots to try out include:

1. Tai Cheong Bakery – famous for its egg tarts, a Hong Kong delicacy.

2. Tim Ho Wan – a renowned dim sum restaurant with a Michelin star rating.

3. Kam Wah Cafe – a 50-year-old cafe that serves traditional egg sandwiches and milk tea.

4. Wan Chai Market – a bustling street food scene that offers a variety of local delicacies such as fish balls and curry fish balls.

Cultural Experiences

Hong Kong’s diverse cultural heritage offers fascinating insights into the city’s past and present through its many cultural experiences, from historical landmarks to contemporary art scenes. Some of the cultural experiences to explore include:

1. Hong Kong Museum of History – a museum that showcases the city’s rich heritage, through interactive exhibitions and artifacts.

2. Temple Street Night Market – a bustling market that offers street performers, fortune tellers, and local snacks and souvenirs.

3. Man Mo Temple – a historic temple that pays tribute to the God of Literature and the God of War.

4. PMQ – a transformed creative arts and cultural hub, that features exhibitions, design markets, and pop-up stores.

Local History

Hong Kong’s history is diverse, spanning from its ancient roots to modern-day Hong Kong as one of the world’s most influential financial centers. Visiting historical sites and museums adds valuable insights into the city’s past. Some of the historical sites to check out include:

1. The Peak Tram – a historical mode of transportation for over 130 years, located on Victoria Peak.

2. Western Market – an Edwardian-style building built-in 1906 that was once a bustling marketplace.

3. Wong Tai Sin Temple – a Taoist temple that dates back to the 1900s, believed to bring good fortune and luck.

4. Victoria Harbour – a natural harbor that played a significant role in Hong Kong’s evolution as a mercantile hub.

Off-the-Beaten-Path Suggestions

If you’re looking for a unique way to explore Hong Kong, there are plenty of unconventional and off-beat experiences on offer. Some of the off-the-beaten-path suggestions include:

1. Hiking – Hong Kong offers many scenic hiking trails, including the famous Dragon’s Back Trail.

2. Hong Kong Wetland Park – a nature reserve that houses an eco-friendly park with beautiful wildlife and water birds.

3. Lamma Island – a peaceful island with a laid-back vibe, offering scenic hikes and an array of seafood restaurants.

4. Markets – Hong Kong’s many markets offer a unique shopping experience, including fresh produce, antiques, and curiosities at competitive prices.

In conclusion, Hong Kong is a city of contrasts, offering something for everyone, regardless of budget. By exploring the city’s local attractions, dining options, cultural experiences, historical landmarks, and off-beaten-path suggestions, you can create a unique and memorable experience without breaking the bank.