The Hong Kong property market is currently among the largest in the world. There are ample support infrastructures efficiently integrated to integrate technology and innovative ideas, making Hong Kong’s real estate market a home for thousands of global investors and business personalities. Furthermore, Hong Kong’s real estate market is highly dynamic. It has a robust organizational framework that helps investors secure against potential fraud and allows them to bring new ideas into the market.
Hong Kong offers a perfect business landscape for starting a real estate agency. The solid legal system and financial support system of Hong Kong provides entrepreneurs with everything they need to start a successful business. However, there is high competition in the real estate market in Hong Kong and several regulations in the industry. Another one is the economy because it might also affect some business operations in Hong Kong. Therefore, it is welcome to be acquainted with all the legalities in advance to minimize the risk of ending on the wrong part of the equation. In this article, you will learn the points that outline why Hong Kong has been considered suitable for real estate business and the procedures for starting a real estate agency in Hong Kong.
Hong Kong Real Estate Market
Let’s understand the real estate market in detail.
A real estate market involves the buying and selling of homes, offices, and any other type of building, such as houses and apartments, which are residential properties. In contrast, buildings and industrial land are classified as industrial land. The present Hong Kong property market is among the largest and most developed globally. The real estate market provides enough facilities to suit the entrepreneurship needs of anyone aspiring to start and expand a real estate business in this country.
- Ideal Conditions to Start a Real Estate Agency: That is why starting a real estate agency in Hong Kong is one of the best decisions. The real estate business can be started in Hong Kong because the place is well equipped with all the necessities required to set up and run a business.
- Investment Attraction and Global Financial Hub: As a global financial hub, Hong Kong has the capital needed to transact business. Moreover, its reputation as a worldwide financial center attracts investors to the real estate market. Another vital factor that makes Hong Kong perfect for real estate is its strong economy. The availability of resources and a vibrant market strengthens Hong Kong’s economy.
- Infrastructure Development and Technology Integration: Infrastructure development is the last attribute that supports real estate agencies in Hong Kong. Hong Kong is economically integrated, has a powerful economic base, and is famous worldwide as the financial center. Hong Kong has a highly developed infrastructure system with integrated facilities and technologies. The blend of traditional structures with modern technologies increases demand for the real estate market in Hong Kong, creating better business opportunities for real estate agencies in Hong Kong.
- Favorable Taxation System: Favorable taxation laws are important to Hong Kong’s real estate giant status. The taxation rates prevailing in Hong Kong are also lower than in most parts of the globe. Currently, the Hong Kong operating profit tax rate is 8.25% for the initial HKD 2 million operating profit and 16.5% for the additional operating profit, which is significantly lower than in other places.
- Better Lifestyle and Public Services: Last but not least, quality of life is a priority in the real estate segment of Hong Kong. It has one of the highest standards of living in the world today within the region, given its success. Those actions aim to reduce the everyday nuisances of people’s lives, and the Hong Kong government seems to care about them considerably. They have learned that Hong Kong’s living cost is relatively high, so cheap food and transportation stand out. Hong Kong residents cheaply provide high-quality public health care services to the whole population. When all these factors are implemented, Hong Kong will automatically be a good place to invest in real estate.
How to Start a Real Estate Agency in Hong Kong?
Entrepreneurs’ first question is how to start a real estate agency in Hong Kong. After conducting marketing research, an aspiring entrepreneur needs to follow certain steps to establish one. The above steps are explained below in detail.
1. Choosing a Business Structure
Firstly you must decide the business structure of your business. The agency’s legal status has to be settled before starting a real estate agency in Hong Kong. Some options for business structures in Hong Kong include sole traders, companies, limited liability companies, and partnerships. All these structures also have their strengths and weaknesses for every business.
Every type of business undertaking in Hong Kong has distinct and various requirements. Hence, it means that you must evaluate all the aspects of the different business structures to get the best one that suits your needs.
2. Business Registration and Licensing
The next thing to decide is, you must register your business, which involves compiling relevant documents, completing and submitting the registration form, and paying the required fees. When you need help with registration, Contact us – We are experts in setting up a new business in Hong Kong.
Once your business is registered, you should get the licenses and permits to operate in Hong Kong. To start a real estate agency in Hong Kong, you must secure an Estate Agents License (EAL). However, if one is involved in selling, buying, and renting properties, one must have a salesperson’s license (SPL). An SPL will assist you in working under an EAL holder.
3. Hiring and Training Staff
Starting an entrepreneurial venture might not be complete without a couple of good employees. The third step in starting a real estate agency in Hong Kong is to hire skilled individuals. You must specify what you are looking for. This reduces the time and effort that might be wasted by segregating individuals.
Once you have hired your core staff, the next part is training them. From different training programs and courses, you can lead your staff to the market. Similarly, you can get information about real estate in Hong Kong by referring to specialists in that field.
4. Office Setup
One other crucial factor that needs consideration when establishing a limited real estate agency in the Hong Kong environment is the location of the agency office. Having an office shows your seriousness towards the business and also attracts investors to the company. It is essential to remember that your office should be located in a place that makes it easily visible and accessible.
Moreover, to keep up with the latest trends in the Hong Kong market, you can use equipment and accessories that are environmentally friendly. This creates a positive business image in the market and can create better chances of growth for the agency.
5. Marketing and Business Development
The final task is promoting your business, which you must do meticulously. This is because marketing is the most appropriate technique for passing information to customers and creating business awareness. Marketing is the tool that helps to produce an effect that will remain in the customers’ minds for a long time, especially if you apply progressive and reasonable approaches. Some of the various kinds of marketing you can use to reach your audience include social marketing, infographics with influencers, email marketing, and many others.
Another activity that always works hand in hand with marketing is business development. You should try to keep performing business operations to reach the desired market standards. Constructive modifications can provide you with an edge in the competitive real estate landscape of Hong Kong.
Start Your Real Estate Agency in Hong Kong with Startupr
These steps are the main points to remember when opening a real estate agency in Hong Kong. If you are willing to start a real estate agency, having an expert like Startupr can be very helpful.
Startupr is one of the most preferred platforms for creating a business in Hong Kong. Some of your business errands that startups may accomplish include establishing a real estate agency in Hong Kong, forwarding mail, bookkeeping, accounting, and numerous other chores.