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Relocation Hong Kong Limited SEPTEMBER 2017 MARKETWATCH Information from Cartus on Relocation and International Assignment Trends and Practices. HONG KONG Up-to-date information on the residential rental market, international schooling and visa/immigration regulations in Hong Kong RESIDENTIAL LEASING MARKET In recent years, rental fees for small- and medium-sized properties have increased, while rental fees for large and/or luxury properties have decreased. However, the first quarter of 2017 bucked the trend as all property types saw rental fee increases. According to the Hong Kong government’s Rating and Valuation Department—Rental Indices, average rent by class recorded a 2% increase for Class A-C properties and a 1.1% increase for the larger Class D-E properties. Due to Hong Kong’s strong seller’s market, many landlords are opting to sell their properties rather than lease them, leading to limited stock and increased rental amounts. Properties priced between HK$30,000 and HK$80,000 remain Despite the Hong Kong government’s property cooling popular among expatriates. However, a 3% to 5% increase has measures, which increased stamp duty tax on home purchases, been forecast this year. it is expected that home prices will continue to increase due to strong domestic demand. Occupancy rates for properties in excess of HK$150,000 are slowly creeping up, although demand is not as high as their Serviced Apartments/Hotels cheaper counterparts. With limited demand in this price The recent opening of several new serviced apartments has range, it is expected that rent will, at least even out or show increased supply. As a result, serviced apartment occupancy has a small 1% to 2% increase. As a result, most companies have dropped slightly, forcing landlords to offer promotional deals to indicated no major plans to dramatically change assignee boost sales. housing budgets. New serviced apartments: In lease renewal situations, landlords have remained Little Tai Hang - 98 Tung Lo Wan Road, Tai Hang aggressive. Rental reductions or even renewing at an existing Opened at the beginning of 2017, offering studio, 1- and rent are rare. Instead, average increases of 1% to 3% can 2-bedroom units ranging in size from 358-810sqft. These are be expected. boutique-serviced apartments and hotels offering both daily and monthly stays. Low Range (HK$) Mid-Range (HK$) High Range (HK$) CM+ serviced apartments - 16 Connaught Road West, Sheung Wan 1 Bedroom 17,000 – 30,000 25,000 – 48,000 55,000 – 80,000 Opened in Q4 2016, offering 54 deluxe studios (706sqft) with full harbor view. 2 Bedroom 22,000 – 40,000 35,000 – 80,000 75,000 – 120,000 Beak Lane - 118 Queen’s Road West, Sheung Wan 3 Bedroom 40,000 – 60,000 65,000 – 100,000 110,000 – 170,000 Opened in Q3 2016, offering 700sqft one-bedroom units. CARTUS | MARKET WATCH: HONG KONG / SEPTEMBER 2017 | PAGE 1 OF 2 SEPTEMBER 2017 MARKETWATCH Information from Cartus on Relocation and International Assignment Trends and Practices. HONG KONG IMMIGRATION SCHOOLING 1) New Measure for Sponsoring Companies Nord Anglia International School faces difficulties In July 2016, the Hong Kong Immigration Department introduced opening its second campus a Declaration of Sponsor form (a compulsory form to be completed Early this year, Nord Anglia International School (NAIS) by sponsoring companies for new employment visas and change of announced that it will open its second campus in Tin Wan— sponsorship applications) to the immigration process. However in Aberdeen, in August 2017. The school has been accepting students to its Tin Wan campus, however in late April, NAIS Q4 2016 the Department revised their process, removing informed parents that they have been having difficulties getting the Declaration of Sponsor form and including extracts from the necessary permits from the Hong Kong government. As a it within an updated version of the Application for Employing result, the School has offered its students the option to attend Professionals in Hong Kong form. It is important to note, their Lam Tin campus, which is the main campus, or withdraw submission of the obsolete Declaration of Sponsor form will result with a full refund. NAIS has assured parents that it will continue in a rejected application; therefore we recommend any and all to work with the Hong Kong government to resolve this issue. locally saved copies of this form be deleted going forward. New School Opening – Stamford American School 2) New Measure for Indian Visitors Stamford American School (SAS) will start its first year at its Ho Effective from 23 January 2017, Indian nationals who enter Man Tin campus this September. This year, the school will be Hong Kong as visitors have to complete a pre-arrival providing programs from Kindergarten to Grade 7. Gradually, registration (PAR) online. Upon approval, visitors using their Stamford will expand its program offerings to Grade 12, making visa-free entry can stay up to 14 days. itself a “through-train” school. SAS will offer a U.S.-based curriculum, which adheres to American Education Reaches Out The PAR system requires travelers to answer questions (AERO) and Common Core Plus standards. Once SAS acquires a regarding their travel history, contact information (in India and high school, it will offer the International Baccalaureate Diploma Hong Kong), amount of funds available, purpose of visit, and Program for the last two academic years. other questions. The system uses this information to conduct a risk assessment and instantly issues a printable approval slip Inter national Schools Cost Estimate if the traveler is accepted. Travelers have to bring the same passport and the PAR-issued approval slip to be able enter Line Item Cost (HK$) Hong Kong. The new policy will only impact Indian nationals Application Fees 500 – 3,700 (non-refundable) entering Hong Kong as visitors. Indian nationals who have Assessment Fees 800 – 4,300 (non-refundable) applied for a relevant employment or training visa will not be Annual Tuition Fees 40,000 – 218,200 affected by the new policy. (Nursery to Year 13) 3) Restricted Country Relaxation Annual Capital Levy 5,900 – 60,000 In Q1 2017, Cambodia was removed from Hong Kong’s restricted country list for employment and training visas. Note: Cambodian nationals are now eligible to apply for employment - The application and assessment fees quoted above are published by various international schools in Hong Kong. and training visas. They must fulfill the same eligibility criteria as - Some international schools require a mandatory individual other foreign applicants. debenture, payable upon acceptance of a school place. Mandatory individual debentures range between HK$100,000 and Vietnam has also been removed from Hong Kong’s restricted HK$550,000. In this instance, no annual capital levy will be charged. country list for training visas (note, restrictions still apply for Exclusions: employment visas). - School Bus Transportation, Books, Uniforms, Laboratory Equipment. For further information about relocating to Hong Kong, contact [email protected]. www.cartus.com | [email protected] | © 2017 Cartus Relocation Hong Kong Limited. All rights reserved. Cartus and the Cartus logo are pending or registered trademarks of Cartus Corporation. Sources: Ratings & Valuation Dept, Government of Hong Kong, Hong Kong Monetary Authority, Hongkongextras.com, Hong Kong Immigration Department. The information provided in this Market Watch publication is provided in good faith but is not intended to provide specific advice or to take the place of either written law or regulations. Cartus does not guarantee the accuracy or endorse any of the views or opinions given by any third parties and accepts no liability for the data and information included within. CARTUS | MARKET WATCH: HONG KONG / SEPTEMBER 2017 | PAGE 2 OF 2.
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