Hong Kong is a semi-autonomous special administrative region of China with a population of more than 7 million people. The climate is extremely diverse; tropical in the south to subarctic in the north. The terrain is mostly mountainous, with high plateaus and deserts in the west; changing to plains, deltas, and foothills in the east.
The official languages are Chinese (mainly Cantonese) and English. The most prominent religions are Buddhism and Taoism.
The economy is characterized by the one country, two systems principle, according to which Hong Kong is based on different economic and political systems than mainland China. It is one of the world’s leading international financial centers, with a major capitalist service economy characterized by low taxes, free trade and minimal government intervention under the ethos of positive non-interventionism. Inflation is generally low.
Hong Kong’s excellent communications network, favorable strategic geographic location, well-developed infrastructure, low taxes, stable currency, and free port status have helped attract significant investment. It’s doing more and more business with mainland China, so expats who are fluent in English, Cantonese and Mandarin have an advantage when it comes to employment.
Expat communities in Hong Kong are extremely diverse. British and American expats, mainly in the financial sector, tend to socialize in the highly Westernized districts of Lan Kwai Fong and Wan Chai, their island’s two main entertainment areas. There is a sizeable Japanese community, many of whom choose the bars and nightclubs of expensive hotels as their gathering places. Several large multinationals choose Hong Kong as the base for their Asian headquarters. As a result, there are many wealthy expats living in the expensive mid-tier area above the Central District.
Living here is safe and it is a well organized city. Shopping isn’t as cheap as it used to be, but electrical/electronic items are usually good value. The stores are usually open every day from 10:00 a.m. to 7:00 p.m. and office hours are usually from 9:00 a.m. to 5:30 p.m. or 6:00 p.m. Monday through Friday. Local attractions include trying stinky bean curd and crushed jellyfish, experiencing horse racing downtown, and Tai Chi at sunrise. Everything you could wish for can be found here, from cinemas to theme parks, with numerous restaurants serving food from around the world.
After staying flat or even falling in 2009, expat housing costs rose significantly in 2010 and are rising again. In the city, rents for luxury accommodation increased by 22% in 2010. The scarcity of land is a major factor in high property prices, especially on Hong Kong Island. Health is also very expensive.
Public transportation is reliable and extensive. Many people prefer not to have a car and prefer to depend on the public transport network. The best way to keep costs down is to live like the locals do. They know where and how to find a bargain and avoid the touristy areas.
Below is a comparison of Hong Kong and New York based on a professional expat lifestyle:
basket group Cost of living in China, Hong Kong
Alcohol and Tobacco -11.46%: Cheaper
Clothing 3.93%: More expensive
Communication -3.29%: Cheaper
Education -61.76%: Cheaper
Furniture and Appliances -28.16%: Cheaper
Groceries 13.76%: More expensive
Health 55.86%: More expensive
Home 110.74%: More expensive
Various -14.27%: Cheaper
Personal Care -34.84%: Cheaper
Leisure and Culture -17.54%: Cheaper
Restaurants Eating out and Hotels -24.85%: Cheaper
Transport -6.27%: Cheaper
The overall weighted difference in cost of living puts Hong Kong at 29% more expensive than New York, mainly due to the higher weight associated with household accommodation, groceries, and medical care. However, many of the sneakers are significantly cheaper compared to New York.
Hardship is the relative difference in quality of life/lifestyle that a person and their family are likely to experience, assessed in aggregate terms, when moving between different locations. Difficulty measures the relative quality of living conditions between locations and assesses the level of difficulty that will be experienced in adjusting to a new location.
New York is classified as a “Minimal Hardship” location with a 10% hardship premium, while Hong Kong is classified as a “Some Hardship” location with a 20% hardship premium. Therefore, the relative difference in difficulties puts Hong Kong 10% above New York.
Based on all of the above factors, a person would need a salary of HK$1,084,084 in Hong Kong to have the same standard of living they currently enjoy in New York on a salary of US$100,000. . This salary makes up for the overall 29% cost-of-living difference, the 10% hardship difference, and the exchange rate.