Cost of Living in Hong Kong

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The cost of living in Hong Kong is undeniably high, with some sources putting it as the highest in the world. Hong Kong has topped Mercer's Cost of Living Survey for several years and remains the most expensive city for expats in the world in 2024.

In part, this is due to the region's overinflated property market, which makes finding accommodation an expensive endeavour. Add the fact that most produce and commodities are imported, and one tends to see that the necessities of life are generally pricier in Hong Kong than in other cities.

Nevertheless, the typically high salaries earned by expats tend to offset these costs, and many find their quality of life is higher than it was back home.

Cost of accommodation in Hong Kong

Housing in Hong Kong is notoriously expensive, and depending on their needs, expats can expect a high percentage of their salary to be spent on an (often tiny) apartment. The older Chinese-style apartments, in particular, are more reasonably priced but they don't afford the space that Western expats may be used to.

The demand for housing in Hong Kong far outstrips the supply, and as one of the most densely populated territories in the world, this contributes to astronomical accommodation costs. The initial cost of renting, which includes a two- to three-month security deposit, also plays a role in the high cost of accommodation in Hong Kong. Moreover, expats must typically pay for monthly utilities in addition to their monthly rental fees.

Cost of public transport in Hong Kong

Public transport in Hong Kong is cheap, clean, and reliable. By contrast, owning and maintaining a car in Hong Kong is pricey. Most people find that they don’t need one if they live centrally; plus, the cost – and high risk of bumping into erratic taxi drivers – is generally not worth it.

Regular public transport users will benefit from purchasing a reloadable Octopus Card. This card can be used to access all four modes of public transport in the city-state (ferry, bus, tram and rail). It also offers commuters discounts, making it the perfect cost-saving measure for budget-conscious expats.

Cost of education in Hong Kong

Education is free in Hong Kong's state-run schools. Most expat parents prefer to send their children to one of the region's private international schools that follow a foreign curriculum, such as those of the US and the UK. These can be expensive, and expats should ensure their salaries or package will cover school expenses before signing a permanent contract.

While these schools are costly, they offer expats the ease of moving around the world without disrupting their children's education. These schools also often offer exceptional teaching standards and facilities, while boasting a wider range of extracurricular activities.

Cost of healthcare in Hong Kong

Healthcare in Hong Kong is free for expats using the public system, which is excellent but heavily oversubscribed. Expats who want to use public facilities will need their Hong Kong ID card to access public hospitals. The biggest downside to public healthcare is the long waiting times associated with the system. Dental care is also not covered under the public system except in emergencies.

Most expats organise a private insurance plan through their employer. The cost of this will vary depending on the level of coverage they choose, their age, and lifestyle habits such as smoking. Expats can reduce the cost by shopping around to find the most cost-effective cover for them and their needs.

Cost of groceries and shopping in Hong Kong

Thanks to its proximity to China, Hong Kong has many things available cheaply. Household supplies, clothes and other bits and pieces are made just across the border and transported freely into Hong Kong, making them affordable. China also provides much of Hong Kong’s fresh food and grocery items, and if expats are happy to go local in terms of produce origin, the weekly shop can be easy on the wallet.

That said, most Westerners prefer not to buy local produce, especially with stories of questionable farming practices and food additive scandals hitting the papers regularly. Expats buying imported goods can expect to pay double for many fresh and grocery items (especially meat), so grocery shopping costs will quickly increase.

There is no shortage of Western items on international supermarket shelves: Tim Tams and Vegemite for the Australian market, graham crackers and ranch dressing for US expats, and Tiptree Jam and Marmite for the Brits. Not to mention the Japanese supermarkets, Thai food shops, and Philippines speciality stores stocking culinary assets from home.

Cost of entertainment and eating out in Hong Kong

Alcohol is fairly pricey in Hong Kong. Revellers looking to enjoy a regular night out in the city-state must be prepared to pay handsomely at some high-end bars and clubs. There are ways to save a few bucks while enjoying a night out; expats can try out some spots frequented by locals and visit the bars away from the tourist areas.

Since food in Hong Kong is largely affordable, it follows that eating out in the city-state is also fairly reasonable. As in most Asian cities, Hong Kong has a strong street food culture, which can be cheap and tasty. Expats looking for the finer things will have plenty of options, but these will come at a higher price.

Art lovers and history buffs will be delighted to find that some museums, galleries, and festivals, such as the M+ Museum and the Collectible Art Fair, offer free entry during certain times of the year. There are also plenty of low-cost or free green spaces, such as Hong Kong Park and hiking and cycling trails, that expats can visit to fill up their spare time.