Hong Kong Property Glossary

Plain-language definitions of the terms you meet when buying, mortgaging, taxing, and renting property in Hong Kong. 37 terms.

Property Basics

Haunted / hexed property (凶宅)
A flat where an unnatural death (homicide, suicide or fatal accident) has occurred. It affects mortgages, valuation and resale, and some banks may decline financing or lower the valuation.
Price per square foot (呎價)
The price of one square foot, calculated as transaction price divided by area. Hong Kong listings commonly quote price per square foot of saleable area.
Saleable area (實用面積)
The usable internal area of a unit, including balcony and utility platform. Since 2013 new homes must state price and price per sq ft by saleable area.
Gross floor area (建築面積)
Internal area plus a share of common areas such as clubhouse and corridors; larger than saleable area and rarely used for new developments now.
Building age (樓齡)
The number of years since a building was completed. Building age affects the mortgage tenor banks will grant, as 'age plus tenor' is usually capped.
Tong lau / walk-up (唐樓)
An older walk-up building without a lift, mostly built before or shortly after WWII and usually of high building age.
Uncompleted / pre-sale flat (樓花)
An uncompleted first-hand property sold before completion. Buyers pay a deposit and sign first, then move in and arrange the mortgage once it is built.
Completed property (現樓)
A completed property that can be handed over and occupied immediately, as opposed to a pre-sale flat.
Village house (村屋)
A New Territories village-style house, generally limited in height and storeys; some are 'small houses' (ding uk). Title and unauthorised structures need careful checking.
Small house / ding uk (丁屋)
A village house built by an indigenous male New Territories villager under the 'small house concession'; selling to non-indigenous buyers needs a land premium and compliance.
Subdivided flat (劏房)
A flat subdivided into several separately rented small units. Rent, area and fire/hygiene conditions have come under regulation in recent years.
Nano flat (納米樓)
An extremely small home (typically around 200-odd saleable sq ft or less); lower total price but limited usability.
Inflated-GFA building (發水樓)
Under old rules, developers used exemptions (green balconies, clubhouses) to inflate gross floor area far above saleable area; 2013 rules tightened this sharply.

Mortgage & Financing

Loan-to-value ratio (按揭成數)
The bank loan as a percentage of the property's value. Owner-occupier mortgages are capped, and the balance is the buyer's down payment.
Mortgage stress test (壓力測試)
A test banks apply when approving a mortgage, checking whether the borrower could still repay if interest rates rose.
Debt servicing ratio (DSR)
Monthly mortgage repayment as a proportion of monthly income; the HKMA caps it to control borrowers' burden.
Mortgage insurance (按保)
Insurance a buyer must take out for a high-LTV mortgage above the bank's basic ceiling, underwritten by the HKMC.
HIBOR / Prime mortgage (H按 / P按)
Two mortgage pricing methods: H-plan is based on HIBOR (interbank rate), P-plan on the bank's Prime rate.
Refinance / equity cash-out (轉按 / 加按)
Refinancing moves an existing mortgage to another bank for better terms; cash-out re-values the property to borrow more.
Mortgagee / bank-repossessed sale (銀主盤)
A property repossessed and auctioned by the bank after the owner defaulted; usually priced below market.
Drawing down a mortgage (上會)
Colloquial term for applying for, securing and completing a mortgage loan.

Stamp Duty & Tax

Ad valorem stamp duty (AVD)
The basic stamp duty charged on the higher of price or value of a property, with rates banded by price.
Buyer's stamp duty (BSD)
An additional stamp duty payable when a non-permanent resident or a company buys residential property.
Special stamp duty (SSD)
Stamp duty payable when reselling a home within a set holding period; the shorter the period the higher the rate, to curb short-term flipping.
Stamping (釐印)
Colloquial term for paying stamp duty and stamping a sale or tenancy document so it is legally effective.
Rates (差餉)
A tax the government levies as a percentage of a property's rateable value, usually paid quarterly.
Land premium (補地價)
A payment to the government to lift resale or use restrictions on subsidised housing (e.g. HOS flats) or restricted land.

Subsidised Housing

HOS flat / Home Ownership Scheme (居屋)
A government-subsidised flat sold under the Home Ownership Scheme, priced below market; it can only be sold on the open market after paying the land premium.
Public rental housing (公屋)
Public rental housing let by the Housing Authority to eligible lower-income families at below-market rent.
White Form / Green Form (白表 / 綠表)
Two eligibility categories for buying HOS flats: Green Form mainly for public-housing tenants and eligible persons, White Form for other eligible residents.

Transaction & Legal

Provisional sale & purchase agreement (臨時買賣合約)
The first agreement signed with an initial deposit, known as the 'small deposit', setting out price and key terms.
Formal sale & purchase agreement (正式買賣合約)
The formal contract signed usually within 14 days of the provisional one, the 'big deposit', with full legal force.
Forfeiting the deposit (撻訂)
When a buyer walks away from the deal and forfeits the deposit already paid.
Title (業權)
Legal ownership of a property, evidenced by title deeds. Clean title is a precondition for smooth sale and mortgage.
Title encumbrance / charge (釘契)
A registration on a property's land register due to debt, dispute or claim, which affects resale and mortgaging.

Rental & Investment

Rental yield (租金回報率)
Annual rental income as a percentage of price, calculated as annual rent divided by price times 100%; a common measure of a rental property's return.
Fixed term / break clause (生約 / 死約)
Colloquial tenancy terms: the 'live' term is fixed and unbreakable by either side, while the 'dead' term lets one party end the lease early on notice.