Hong Kong is notorious for having one of the most expensive rental markets in the world. Even before moving here, I was prepared to pay a lot for tiny accommodations. What I did not expect, however, was the inefficient and fragmented system that faces anyone looking for an apartment in Skyscraper City.
Just walk down any street and the vast array of rental agencies makes it abundantly clear that this is a lucrative industry. Considering all the choices, my first task was finding a realtor I can trust. One of my American colleagues spoke highly of his realtor, so I visited the office on my first weekend in the city.
The outside windows were completely covered with advertisements of units for rent, and each picture had numbers that meant nothing to me. Unlike all other cities I have lived, apartments list both the gross square footage (including all common areas, including elevators, hallways, etc), and net size (actual liveable space inside the apartment). I almost couldn't believe my eyes when I saw actual apartments for rent with less than 200 square feet of living space. It's like paying to live in prison!
Before even going inside the realtor's office, I noticed a few listings that caught my attention. When I stepped inside, there were rows of workstations that resembled a university computer lab. I introduced myself to the first person who looked up and we had a short discussion about my wish list and budget. He then started searching in his computer.
"What about those places you have posted in the front window?"
"Oh they are not available anymore," he responded quickly, without even looking up from his search. I learned very quickly that the advertisements in the windows are more like examples. The only way to learn true vacancies is to walk inside and talk to someone. So much for efficient window shopping!
After a few minutes, the realtor had found two places he could show me. Both happened to be within walking distance, so he grabbed the keys and off we went. The first unit was above my price range and unfurnished. I gave a quick courtesy look, but then explained my preferences again. The second unit was a two bedroom - also not what I had asked for.
On the way back to the agency, I asked if he could show me some other neighborhoods and he explained that I would have to talk to other realtors if I want to look in other neighborhoods. Upon hearing that, I knew instantly that my search would be significantly more complicated than I had anticipated.
Over the next couple weeks, I visited what felt like thirty different rental agencies, scattered throughout the city. Some of them could show me units immediately, while others asked me to make an appointment and come back at a later time. Most of the time, they would start by showing me units that did not meet my specifications (too large, too small, too expensive, missing appliances, no furniture). I got tired of going through the same charade every time I met a new realtor.
Every day, I received countless messages from the realtors with available units. I felt like I was dating multiple people at once and I honestly couldn't keep track of them all.
My first important victory occurred when I finally decided that I want to live within walking distance to my office in Kowloon. However, while that decision allowed me to "dump" all my realtors in other neighborhoods, it also meant that I needed to find additional ones in the area near my apartment. Why? Each realtor has a separate inventory and there is no central database from which to search available units for rent. Without talking to several realtors, I would be drastically limiting my options.
When I was in Singapore, I felt like I needed to keep up with the search, so I went on Craigslist to look at some online listings. Despite all the warnings that "listings online are usually not even real apartments" and "locals do not use Craigslist", I found a place that looked like a great fit. I set up an appointment to see the apartment on the evening that I returned to Hong Kong. It ended up being just what I am looking for, and I would be renting directly through the owner (no realtor commission). Was it too good to be true?
Throughout the next week, I spent countless hours debating whether it was worth the risk. I have had a lot of success with Craigslist in the past (that is where I found my Chicago apartment back in 2011) but I just couldn't shake the fears of a possible scam - especially since I have to pay 3 months rent when I sign the contract. I did a lot of research but there is really no guaranteed way to eliminate the risks. Were my concerns based on anything concrete or was it was just an underlying lack of trust in the entire process? I just kept envisioning that this "owner" would disappear with my money and that I would never end up with the keys. In the end, I decided not to take the risk. Back to square one.
The next week, a local coworker offered to search with me one afternoon. I think he felt badly for me. Initially, the search started just like all the others. The first place we saw had no fridge, no oven, no washing machine. The next one was in a dilapidated building and it had two unfurnished bedrooms. We kept going in and out of realtor offices. My coworker would usually say a few words in Cantonese and then walk out, shaking his head from side to side. This was not going well.
Just as we were about to give up, we went to one last agent. After a short conversation in Cantonese, my coworker said: "They have one place you might like on the penthouse level." My ears perked up with a mix of excitement and hesitation. We walked over to the building, took the elevator to the top floor, walked another flight of stairs (because the top floor in this building is actually above the elevators). From the moment I saw the view, I was sold. The apartment overlooks Kowloon Park, with views of Victoria Harbor and the Hong Kong skyline.
The owner was also in the middle of renovations. There was a brand new TV on the wall, a new mattress covered in plastic, and plenty of built-in shelving for clothes. The tour only lasted about thirty seconds (you don't need much time to "tour" these tiny apartments) and I wasted no time in making a verbal commitment. Before leaving the apartment, we scheduled a time to meet a few days later so I could pay my deposit and sign the contract.
During the housing search, I learned many things about Hong Kong. Despite being such a modern and fast-paced city, the rental market is still very traditional. Online listings are used more as a source for connecting people rather than actually showcasing vacant units. It is almost impossible to search for an apartment from abroad. In most cases, the owner likes to meet the prospective tenants. There is still a lot of racial stereotyping. As a Westerner, most realtors assumed I had an unlimited budget, a desire for lots of space, and an aversion to living among locals. And, like so many other countries, you get much better options when you know someone who can speak the local language.
Rental commissions are hefty, but the system is built in a way that is almost impossible to avoid a realtor without taking huge risks. I am happy with my decision, but I can't help wondering what could have happened if I ended up with the Craigslist rental. If I was in the United States, I would have paid the deposit and signed the lease without hesitation. I perceived my risk to be higher here without any tangible reasons because the same risks also exist at home. The only reason it felt like a scam is because everyone kept telling me it had to be a scam.
In my opinion, the rental business in Hong Kong is ripe for a transformation, much like the way Craigslist, Uber, and AirBNB have transformed their respective industries in the United States. I just don't know if the local market will allow the tipping point to take place.
 |
| One of many giant residential buildings in Hong Kong |
Just walk down any street and the vast array of rental agencies makes it abundantly clear that this is a lucrative industry. Considering all the choices, my first task was finding a realtor I can trust. One of my American colleagues spoke highly of his realtor, so I visited the office on my first weekend in the city.
The outside windows were completely covered with advertisements of units for rent, and each picture had numbers that meant nothing to me. Unlike all other cities I have lived, apartments list both the gross square footage (including all common areas, including elevators, hallways, etc), and net size (actual liveable space inside the apartment). I almost couldn't believe my eyes when I saw actual apartments for rent with less than 200 square feet of living space. It's like paying to live in prison!
Before even going inside the realtor's office, I noticed a few listings that caught my attention. When I stepped inside, there were rows of workstations that resembled a university computer lab. I introduced myself to the first person who looked up and we had a short discussion about my wish list and budget. He then started searching in his computer.
"What about those places you have posted in the front window?"
"Oh they are not available anymore," he responded quickly, without even looking up from his search. I learned very quickly that the advertisements in the windows are more like examples. The only way to learn true vacancies is to walk inside and talk to someone. So much for efficient window shopping!
After a few minutes, the realtor had found two places he could show me. Both happened to be within walking distance, so he grabbed the keys and off we went. The first unit was above my price range and unfurnished. I gave a quick courtesy look, but then explained my preferences again. The second unit was a two bedroom - also not what I had asked for.
On the way back to the agency, I asked if he could show me some other neighborhoods and he explained that I would have to talk to other realtors if I want to look in other neighborhoods. Upon hearing that, I knew instantly that my search would be significantly more complicated than I had anticipated.
Over the next couple weeks, I visited what felt like thirty different rental agencies, scattered throughout the city. Some of them could show me units immediately, while others asked me to make an appointment and come back at a later time. Most of the time, they would start by showing me units that did not meet my specifications (too large, too small, too expensive, missing appliances, no furniture). I got tired of going through the same charade every time I met a new realtor.
Every day, I received countless messages from the realtors with available units. I felt like I was dating multiple people at once and I honestly couldn't keep track of them all.
My first important victory occurred when I finally decided that I want to live within walking distance to my office in Kowloon. However, while that decision allowed me to "dump" all my realtors in other neighborhoods, it also meant that I needed to find additional ones in the area near my apartment. Why? Each realtor has a separate inventory and there is no central database from which to search available units for rent. Without talking to several realtors, I would be drastically limiting my options.
When I was in Singapore, I felt like I needed to keep up with the search, so I went on Craigslist to look at some online listings. Despite all the warnings that "listings online are usually not even real apartments" and "locals do not use Craigslist", I found a place that looked like a great fit. I set up an appointment to see the apartment on the evening that I returned to Hong Kong. It ended up being just what I am looking for, and I would be renting directly through the owner (no realtor commission). Was it too good to be true?
Throughout the next week, I spent countless hours debating whether it was worth the risk. I have had a lot of success with Craigslist in the past (that is where I found my Chicago apartment back in 2011) but I just couldn't shake the fears of a possible scam - especially since I have to pay 3 months rent when I sign the contract. I did a lot of research but there is really no guaranteed way to eliminate the risks. Were my concerns based on anything concrete or was it was just an underlying lack of trust in the entire process? I just kept envisioning that this "owner" would disappear with my money and that I would never end up with the keys. In the end, I decided not to take the risk. Back to square one.
The next week, a local coworker offered to search with me one afternoon. I think he felt badly for me. Initially, the search started just like all the others. The first place we saw had no fridge, no oven, no washing machine. The next one was in a dilapidated building and it had two unfurnished bedrooms. We kept going in and out of realtor offices. My coworker would usually say a few words in Cantonese and then walk out, shaking his head from side to side. This was not going well.
Just as we were about to give up, we went to one last agent. After a short conversation in Cantonese, my coworker said: "They have one place you might like on the penthouse level." My ears perked up with a mix of excitement and hesitation. We walked over to the building, took the elevator to the top floor, walked another flight of stairs (because the top floor in this building is actually above the elevators). From the moment I saw the view, I was sold. The apartment overlooks Kowloon Park, with views of Victoria Harbor and the Hong Kong skyline.
The owner was also in the middle of renovations. There was a brand new TV on the wall, a new mattress covered in plastic, and plenty of built-in shelving for clothes. The tour only lasted about thirty seconds (you don't need much time to "tour" these tiny apartments) and I wasted no time in making a verbal commitment. Before leaving the apartment, we scheduled a time to meet a few days later so I could pay my deposit and sign the contract.
During the housing search, I learned many things about Hong Kong. Despite being such a modern and fast-paced city, the rental market is still very traditional. Online listings are used more as a source for connecting people rather than actually showcasing vacant units. It is almost impossible to search for an apartment from abroad. In most cases, the owner likes to meet the prospective tenants. There is still a lot of racial stereotyping. As a Westerner, most realtors assumed I had an unlimited budget, a desire for lots of space, and an aversion to living among locals. And, like so many other countries, you get much better options when you know someone who can speak the local language.
Rental commissions are hefty, but the system is built in a way that is almost impossible to avoid a realtor without taking huge risks. I am happy with my decision, but I can't help wondering what could have happened if I ended up with the Craigslist rental. If I was in the United States, I would have paid the deposit and signed the lease without hesitation. I perceived my risk to be higher here without any tangible reasons because the same risks also exist at home. The only reason it felt like a scam is because everyone kept telling me it had to be a scam.
In my opinion, the rental business in Hong Kong is ripe for a transformation, much like the way Craigslist, Uber, and AirBNB have transformed their respective industries in the United States. I just don't know if the local market will allow the tipping point to take place.
 |
| A string of Realtors on my street in Hong Kong |
No comments:
Post a Comment