As an expensively exciting city in Asia with cross-cultured dynamics between Western and Asian cultures, Hong Kong is often referred to the city where “East meets West” since the roots of the Chinese culture have been greatly influenced by the British in the past. 

Hong Kong is well known for being the “concrete jungle” and is recognized as the global center of trade. The subtropical climate accounts for beach and scenic getaways. In March 2019, BBC News released a list of the world’s most expensive cities, with Hong Kong being listed as #1 in Asia. Above all, Hong Kong is still noted as a vibrant and exciting city for expats and travelers.

Most of the world’s largest or most well-known banks (Citibank, HSBC, Deutsche Bank) have a presence in the city. As one of the world’s leading international financial centers, Hong Kong has a broad capitalist service economy. That is to say, it is marked by low taxation and free trade. The Hong Kong dollar is among the top ten most exchanged currencies in the world. 

Living in Hong Kong 

Hong Kong has a large population of expats, and the culture of expats appears to be friendly and welcoming. With English being used as one of the main language mediums, expats can easily navigate the city with many signs being posted in Cantonese and English. Most business individuals are able to converse in relatively good English or Cantonese. In addition, having modern, clean and reliable transportation such as trams, taxis and ferries, allow for efficient commutes. For example, taxi journeys for about 5 to 15-minutes cost less than HKD 50 which is equivalent to less than USD 7. 

The Working Class – Income and Expenditure 

Expat salaries in Hong Kong are subjected to the ‘supply and demand’ which in turn tend to be the higher salaries than most places in the region, but so are the costs of living. Further, a large quantity of the produce is imported. Keeping in mind the possibility of currency fluctuation, daily expenses are quite high. Therefore, expats are known to earn according to the standard, experiencing a much higher quality of life.

Wherever you go, property prices in Hong Kong are always relatively high. Consequently, accomodation costs are higher due to over-inflated markets. For instance, a one-bedroom apartment in the city center costs at least USD 2300. On the other hand, outside the city center can be considered ‘cheaper’ – averaging at a cost of USD 1500. The 2019 HSBC Expat Explorer Survey ranks Hong Kong as 15, which is two ranks higher since 2018. This concludes the city as relatively higher than Mainland China, which is ranked 26th.  

Expat Packages 

In Hong Kong, mid-level expatriate salary packages continued to rise in 2018, with the median contract costing companies USD 276,417. This came in 2017 after a modest drop.  

The benefits offered as part of the pay package for an expat have always been strong in Hong Kong as it tends to be desirable to both enterprises and expats. Such high demand contributes to significantly more expensive housing, foreign education and other expenses than most other places. 

Regionally, Japan held top spot with Hong Kong in fourth place quite unexpectedly behind China. 

Saving Money in Hong Kong 

After moving to a new country and familiarising yourself with the currency exchange rate, living expenses and monitoring spending habits, the thought of saving could come to mind. This could be saving for a deposit on an apartment back in your home country or a rainy-day fund. Saving a small amount from your salary could help build your nest. This often provides more flexibility and opportunity for the future. With the surplus in expat salaries, the option to save is much easier.  

Simple Savings Calculation

For example, your initial investment could be USD 10, 000. You then contribute USD 500 monthly, at the end of the period. Saving for a period of 10 years compounded annually at 1.25% could accumulate a future value of USD 75,175.64.

Calculate your savings/investment!