In 1997 Hong Kong rejoined main land China,
which resulted in it becoming more international, and a popular holiday destination. As a former British Colony, Hong Kong
has always been fashionable with expats from Europe with its high standard of
living and low tax rates resulting in an approximately 100, 000 expat
community.
Expats however, will find most things are
more expensive here than in their home country, especially if trying to
maintain the same standard of living as experienced back at home. Hong Kong is ranked as the most
expensive place to live in the world according to Xpatutualor.com’s latest cost
of living rankings for July 2012.
The cost of housing in Hong Kong is one of
the largest contributors to the high cost of living mainly due to the shortage
of land. It is approximately 5% more expensive than Tokyo based on the overall
cost of living including household accommodation. Household accommodation
comprises 30% of the overall cost of living index. A huge contributor to this
cost is the lack of space, with the majority of the population residing in
apartment buildings and housing enclaves.
Choice varies enormously, where on average
a single-bedroom apartment of 500 sq ft in Happy Valley will cost you around $2
000, or for the same amount you can have a 3 bedroom village house in the New
Territories. If budget is a concern, many expats live in communities such as
Discovery Bay on Lantau Island, rather than living on Hong Kong Island. Even
further out in the Mui Wo, Sai Kung or Cleanwater Bay prices are even lower,
but you must be prepared to commute to work. These communities do have fully
formed communities, which include schools. Only the wealthiest people get to live
in the luxurious hilltop village which overlooks the China Sea.
The state also relies heavily on imported
goods and products from Mainland China and other nations. Imported meat
products, canned foods and fresh fruit and vegetables are very expensive and
can cost twice as much in comparison to other Asian countries. Beverages such
as wines, beers, tea, coffee and water, are all imported, making them expensive
to purchase. Imports from China are however relatively less expensive than
those from other Western countries.
There are a number of supermarket chains in Hong Kong these include
Wellcome and ParknShop. There are
also Westernised supermarkets such as ParknShop International, where expats can
find most products from their home countries, but be prepared to pay double or
triple for the most basic item. The best advice is to find local wet markets
where low cost produce and goods are available, and buy fresh fruit and
vegetables once or twice a week to ensure quality and freshness.
Restaurants abound in the city and are
roughly divided into East and West Style cuisine. The Western style restaurants
are regarded as international and are therefore much pricier. To experience true bargains and the
local eastern cuisine, go to one of the many tiny noodle bars, where you can
get a dish for $3, while at the larger Cantonese style restaurants meals go for
$10 a head.
Tea shops are easily recognisable by their
huge shining brass kettles and supply piping hot or cold drinks for only $2.
Alcohol at local shops is significantly lower than in cities such as Singapore,
New York and London, however will be twice as expensive in the international
hotels and trendy bars.
Transportation in Hong Kong is reliable,
with Taxi’s and MRTs (Trains) being the most used mode of transport. Taxi’s
have a starting price of $2.50 and have a quirky colour code system – Red will
mostly take you to Hong Kong Island and Kowloon areas, Green only serve New
Territories and Blue run exclusively to Lantau which includes the airport and
Disneyland. The MRTs cost between $0.30 and $3 per journey, while a ferry
shuttle across the complex of Hong Kong Islands can be as cheap as $0.15. An
Octopus Card, which covers all public transport, will help you save any more on
transport costs and allow you to easily manage without a car.
Clothing is enjoyably affordable, as most
wares such as clothes, footwear, cosmetics and accessories come from Mainland
China and can be found in the local flea and night markets in the downtown
areas. Jewelry, gadgets and electronics are also cheap but the quality is
questionable. Labels and brands
abound in the Kowloon district shops and malls, where designer wares are
popular as the styles and patterns are very much updated with British
standards.
Healthcare is also given importance,
medical and rehabilitation services are not subsidized and medical insurance is
recommended.
There are a number of notable schools in
Hong Kong, including ESF schools, American, Japanese, Chinese, German, and
Canadian International Schools of which many are affiliated with British
Universities. http://en.wikipedia.org/wiki/List_of_international_schools_in_Hong_Kong
The best way for most expatriates to keep
costs low is to adopt a local attitude and live as the locals do. Look for
bargains, buy from local shops, go to local restaurants and live a local
lifestyle.
Denise is an Expat and Marketing Manager at http://www.xpatulator.com/ a
website that provides cost of living index information and calculates
what you need to earn in a different location to compensate for cost of
living, hardship, and exchange rate differences. The complete cost of
living rank for all 13 baskets is available here.
