Hong Kong is a special administrative region within China. This means that the territory is under jurisdiction of Beijing but enjoys many political, economic and social privileges that lack in the other regions of the country. According to the UK-Chinese agreement of 1984 these privileges may last until 2047 or 50 years after the former colony was returned. There are more than enough reasons to believe that these privileges and lots more will endure far beyond this date by becoming standard regulations for the other Chinese provinces, undergoing process of rapid modernization.

The first and obvious change all foreigners observe in Hong Kong these days is that the fear of Chinese encroachments with the life of the ordinary people has subsided in the years that followed the former colony's handover. There were many during the years leading to 1997 that looked to emigrate from Hong Kong. The apocalypse many feared didn't materialize, although there were two financial crises that affected the local economy. In the last years the tide has turned its course. Now these are the Chinese living abroad, e.g. in Canada or in the United States, that look for relocation to Hong Kong. It seems that for many ordinary Chinese it's easier to become Canadian citizens first and then move to Hong Kong as Canadians than to relocate directly to this territory as Chinese citizens. The democracy is limited in Hong Kong but in almost everything else the civil society is doing well as if the handover hasn't taken place 8 years ago.

The political handover has accelerated the process of industrial relocation from Hong Kong to other Chinese provinces. The city that was once famous for its cheap manufacturing now has turned itself into a city of businesspersons and service-providers. The living standard is one of the highest in the world. Hong Kong now puts the emphasis on what it's doing best, to be an English-speaking consulting hub for western investors looking for the enormous Chinese markets. Producing cheap watches and plastic toys has been relegated to the other Chinese provinces.

There is widespread misconception about Hong Kong as being so overcrowded that it doesn't allow any other activity except going back and forth from home to work. In fact the bulk of the population lives and works on tiny areas around the main harbor. Most of the territory has never been developed for residential or commercial use. Sand beaches can be found not too far from the city downtown. The main problems for new developments are the high costs of initial landscape works. The hilly landscape requires lots of money to be turned into flat ground ready for building. Most developers find easier instead to build another skyscraper. But when the money isn't a problem the hilly slopes are gradually turned into new luxurious communities.

Foreigners looking for job in Hong Kong should be aware of the high property prices and rents in the city. A furnished apartment for $1,000 (U.S.) a month usually means a small studio of no more than 250 sq. feet. On the other hand the English teachers' salaries are starting at $1,800-2,000 a month for a full-time job. To work as a teacher in international schools the native English isn't always enough. Most of the time bachelor's or even master's degrees in addition to the teaching experience are required.

Hong Kong profile:

• Area: 1,092 sq km
• Population: 6.9 million (July 2005 est.)
• Population growth rate: 0.65% (2005 est.)
• Life expectancy at birth: 81.39 years
• Total fertility rate: 0.91 children born/woman (2005 est.)
• GDP per capita: purchasing power parity $34,200 (2004 est.)
• Main trading partners: China, U.S., Japan.
• Debt external: $417.6 billion (June 30, 2003 est.)
• Internet users: 3,212,800 (2003)

(Source: CIA - World Factbook 2005)

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See also the directory of companies providing real estate services in, and general real estate information of Hong Kong.