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Can Hong Kong bounce back as a relocation destination?

With its COVID restrictions now a thing of the past, and a new wave of ambitious expats arriving to advance their careers and experience the city, can Hong Kong regain its footing as the vibrant expat hub it once was?

Relocating for work is a big ask for anyone.

It’s not just a matter of switching offices, or work teams. It involves the uprooting of lives, a change of schools for children, a new culture, new climate – new everything.

For many, the further you go, the more intense the culture shock is. Yet, thousands of employees – from the US, UK and Europe – relocate to the Asia-Pacific region, or APAC, every year.

Despite being far away, APAC has several key destinations that attract professional expats – Tokyo, Singapore, New Zealand, to name a few.

Hong Kong has traditionally attracted a large expat community, too. In 2014, it was reported that 4.6% of the city’s overall population were expats. Known for its friendly expat community, abundance of international schools, and vibrant nightlife, it’s unsurprising that 4.3% of these were relocating from far-away France and 2.7% from the UK.

The impact of Covid
But Hong Kong, like almost every city around the world, was hit hard by the pandemic, and introduced tough restrictions over a prolonged period to stop the spread of the disease.

Just as in many other cities all over the world, residents opted to move out-of-town during lockdown, concerned that restrictions placed on urban areas would leave them isolated or confined to apartments with minimal outdoor space, far away from their families for an undefined amount of time..

Some left for locations in APAC that had adopted a different approach to tackling COVID-19, such as Singapore where restrictions were looser, and lifted sooner.

We spoke recently to some current expats based in Hong Kong, many of whom explained the challenges that the pandemic had on their relocation experience to Hong Kong: “(What I found challenging about relocating to Hong Kong was) obviously the restrictions that were still in place for COVID,” said one expat, “especially having relocated from Singapore, which had already lifted its restrictions.”

However, at the beginning of 2023, Hong Kong lifted those last remaining restrictions and there is evidence that the city is now undergoing something of a renaissance.

Hong Kong’s reopening
An expat who relocated to Hong Kong less than a year ago, told us: “I came at a great time, when restrictions were being lifted, so things may seem different to me, but I love living in Hong Kong.

“Yes, there are things that could be improved, but it’s been easy to settle in with two young kids. I would recommend Hong Kong to anyone.”

A brighter future ahead
With its COVID restrictions now a thing of the past, and a new wave of ambitious expats arriving to advance their careers and experience the city, can Hong Kong regain its footing as the vibrant expat hub it once was? So far, the future looks promising.

“Moving to Hong Kong has been an easy transition”, said one recent assignee. “The city has rebounded quickly, and has a real buzz in the air. Cafes are full and the streets are packed. It’s nice to see Hong Kong return to its former self.”

Another praised the city for giving them “a greater level of personal freedom”, with the consensus in the community being that “Hong Kong is back open for business and pleasure again.”

It’s safe to say that the city’s revival is well underway. As the government continues to try and attract talent to the city through tax incentives and visa programs, the city’s “brain drain” will hopefully slow down, too. And maybe, in time, Hong Kong can turn back the clock and restore its reputation as one of APAC’s expat hubs.

Steven Hui, a real estate manager for Crown World Mobility, based in Hong Kong, said: “At the beginning this year, after Hong Kong’s government lifted its COVID measures, we’ve seen a substantial increase in inbound housing queries – particularly from assignees with families and children – which was non-existent for the two years prior to that.

“We believe the market here will continue rebounding in a slow but steady way, and expect it to return to pre-covid levels by the second quarter of 2024.”

Overcoming cultural differences
There are of course certainly some challenges to living in Hong Kong as an expat that are unlikely to go away any time soon – language barriers, differences in culture, and food.

“English is less commonly used in Hong Kong, compared to other major international cities such as Singapore or Dubai”, remarked one new expat. “Vegan food options can be found in popular hotspots, but meat-less food is quite uncommon in most restaurants”, remarked another.

Differences in housing, and the house-hunting experience, can also prove challenging for new arrivals. “When I first arrived, I had difficulties with the smaller units and apartment sizes”, said one expat. Others told us that the “house hunting culture” was complicated, and involved signing agreements with estate agents during the viewing stage of the process.

But challenges and cultural differences aside – which, depending on an expats country of origin, will exist when relocating to any city with a significantly different set of cultural traditions – there’s evidence to suggest that Hong Kong is  experiencing a revival after an incredibly difficult few years.

One of the huge benefits that Hong Kong offers is a truly global city but on a more intimate scale. Live anywhere on Hong Kong island and the city centre is always only a short and cheap taxi ride away.

Even if you choose to live further out in one of the more family orientated areas or even on one of the outlying islands, you’re still only an easy commute to Central. When you add to that the energy and vibrancy of the city which is unmatched by competitor cities in the region – notably Singapore or Dubai – and the resilience of Hong Kong and its people – the future looks bright.

The pandemic has certainly left its mark in the APAC region and created new international hubs, but it’s starting to look like any naysayers who predicted the demise of Hong Kong will not have the last laugh – and that the city is indeed poised to bounce back.

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