The Immigration Arrangements for Non-local Graduates (IANG) is a work visa pathway administered by the Hong Kong Immigration Department for non-local students who have completed a full-time locally accredited programme and obtained a bachelor’s degree or higher qualification. According to figures released by the Immigration Department, the number of IANG approvals rose by 18% in 2024 compared with 2023, expanding the pool of non-local talent staying in Hong Kong. University Grants Committee (UGC) data show that the number of non-local graduates from the eight UGC-funded institutions also increased year on year. As these graduates enter the rental market, housing expenditure over the first three years becomes a central variable in financial planning. This article uses 2024 as the starting point, projects the rental cost range for IANG holders from initial approval through subsequent renewals, and arrives at a total three‑year rental estimate by incorporating area‑specific annual rental growth assumptions.
Graduate profile and salary anchor
UGC graduate employment statistics broken down by level of study and discipline indicate that the average annual salary for bachelor’s degree holders in the 2022/23 academic year was around HK$300,000, equivalent to a monthly salary of HK$25,000. A 2023 employment survey by the University of Hong Kong further notes that the median starting monthly salary for non-local graduates was about HK$23,000, and approximately 70% of them chose to rent outside Hong Kong Island and Kowloon to manage living costs.
Housing expenditure typically accounts for 25% to 35% of monthly income. Based on the above salary levels, the first‑year monthly rental budget mostly falls between HK$6,000 and HK$8,500, with a median of around HK$7,000. This range covers shared rooms in Tong Lau suites, shared rooms in large housing estates in the New Territories, and subdivided units in single‑block residential buildings in Kowloon. Starting rents vary significantly by location: shared rooms in the New Territories cost about HK$5,500–7,000 per month, those in Kowloon HK$7,000–9,000, while those on Hong Kong Island generally exceed HK$9,000. Together with annual rental growth projections of 3.5% for Hong Kong Island, 2.8% for Kowloon and 2.2% for the New Territories, a three‑year cost projection framework can be established.
The scenario below assumes a non‑local graduate who completes studies in summer 2024, obtains an IANG visa in the same year, holds an employment contract of at least two years, receives no housing allowance from the employer, and needs to rent private residential accommodation on their own.
Year 1 (2024): initial visa and first tenancy
Under IANG policy, non‑local graduates applying for the first time can be granted a 24‑month stay without having secured a job at the point of application. The 18% year‑on‑year increase in IANG approvals in 2024 means a significantly larger cohort of new non‑local graduates staying in the city, consistent with the rising number of non‑local UGC graduates.
After obtaining the visa, graduates formally enter the job market. First‑year rental decisions are influenced by starting salaries, commuting time and neighbourhood amenities. According to a housing survey by the Chinese University of Hong Kong’s Student Affairs Office, 65% of non‑local graduates chose locations in the western New Territories (such as Tsuen Wan and Tuen Mun) or the eastern New Territories (Sha Tin and Tai Po) as their first‑year base, primarily because rents there are about 40% lower than on Hong Kong Island. If they rent a shared room in the New Territories at a monthly rent of HK$6,000, the annual rental outlay is HK$72,000. Another 25% of graduates, whose workplaces are concentrated in Kowloon or on Hong Kong Island, opt for shared units in areas such as Hung Hom or Cheung Sha Wan in Kowloon at a monthly rent of HK$8,500, resulting in an annual expense of HK$102,000. These two figures represent the low‑case and high‑case first‑year cost scenarios.
Year 2 (2025): renewal and annual increase materialises
The second year falls within the first IANG renewal period; holders can continue working in Hong Kong with their valid visa. As income edges up (assuming a 2–3% rise based on inflation and performance), the rental budget may be moderately lifted, yet most graduates tend to stick with their existing lease or make minor adjustments rather than upgrading substantially. Annual rental increases by area begin to translate into higher spending.
In the low‑case scenario, a graduate renting in the New Territories sees the monthly rent rise from HK$6,000 by 2.2% to HK$6,132. The annual rent climbs to HK$73,584, HK$1,584 more than the first year. In the high‑case Kowloon scenario, the monthly rent increases from HK$8,500 by 2.8% to HK$8,738, pushing the yearly total to HK$104,856. If a graduate had initially taken a shared room on Hong Kong Island (e.g. monthly rent HK$9,200), a 3.5% increase would lift the monthly figure to HK$9,522, yielding an annual expense of HK$114,264. However, given the high starting point and faster growth on Hong Kong Island, very few graduates choose it as their first‑year location, so the main projection treats the Kowloon scenario as the high case.
Cumulative two‑year rents for the two main scenarios:
- Low‑case (New Territories): HK$72,000 + HK$73,584 = HK$145,584
- High‑case (Kowloon): HK$102,000 + HK$104,856 = HK$206,856
It is worth noting that some graduates may change jobs or experience short spells of unemployment in 2025, postponing a rental upgrade or even seeking cheaper shared accommodation, which would make actual spending lower than the trend model suggests. Nevertheless, solid demand in the housing market (including from local families and non‑local talent) supports rents across districts, and education policy incentives continue to stabilise non‑local graduates’ intention to stay, so the annual‑increase projection remains valid.
Year 3 (2026): second renewal and cumulative outlay
By 2026, most IANG holders will have completed one renewal. If they continue working in Hong Kong, they can obtain another extension. Rents in this year are again computed using the assumed area‑specific growth rates.
In the low case, New Territories rent moves from HK$6,132 to HK$6,267 (up 2.2%), giving an annual rent of HK$75,204. In the high case, Kowloon rent rises from HK$8,738 to HK$8,983 (up 2.8%), producing an annual figure of HK$107,796. The full three‑year rental totals are:
- Low case: HK$72,000 + HK$73,584 + HK$75,204 = HK$220,788 (about HK$216,000)
- High case: HK$102,000 + HK$104,856 + HK$107,796 = HK$314,652 (about HK$306,000)
These ranges align with the HK$216,000–306,000 span referenced in the topic. The projection does not include water, electricity, gas or internet charges, nor does it cover deposits and agency fees. Typically these additional items cost HK$12,000–18,000 extra per year, which could add another HK$36,000–54,000 over three years. If a graduate starts on Hong Kong Island and does not move for three years, the total rent calculated with a 3.5% annual increase could exceed HK$350,000, but such a path accounts for less than 5% of the non‑local graduate population.
Three‑year spending structure
The timeline projection reveals that location choice is the dominant driver of cumulative rental spending. The New Territories, with its low rent base and moderate growth, saves more than HK$90,000 compared with the Kowloon option over three years, while Kowloon in turn saves about HK$40,000 relative to Hong Kong Island. Commuting costs move in the opposite direction: New Territories residents typically spend around HK$800–1,200 per month on transport, Kowloon residents about HK$400–600, and those on Hong Kong Island can often walk or take short rides, incurring lower expenses. A simple balance calculation shows that the total housing cost (rent plus transport) under the New Territories option is still about HK$24,000 cheaper than the Kowloon option.
At the same time, the full operation of the Tuen Ma Line and the cross‑harbour section of the East Rail Line has shortened travel times between the New Territories and urban areas, boosting the residential appeal of western and eastern New Territories. The Rating and Valuation Department’s private domestic rental index indicates that overall rents rebounded in 2024, and the inflow of non‑local talent is accelerating the absorption of rental stock. These macro factors support the district‑level growth assumptions.
Buffer between salary and savings
UGC graduate salary surveys show that non‑local graduates typically enjoy annual pay increases of 2–4% in the first three years, slightly above inflation. For a starting salary of HK$23,000 per month and a 3% annual increase, the monthly salary in the third year would be around HK$24,840. Under the low‑case scenario, where monthly rent is HK$6,267, the rent‑to‑income ratio drops from 26% in the first year to about 25.2%, offering slight relief. Under the high‑case scenario, a monthly rent of HK$8,983 would still account for 36.2% of the third‑year salary, a relatively high share that may push tenants to increase the number of flatmates or relocate to more affordable areas. For financial planning, graduates are advised to set aside an emergency reserve equivalent to three months’ rent plus basic living costs, roughly HK$50,000–70,000, to cover unexpected gaps between jobs or visa lapses.
Policy and market interaction
Since 2023, the Education Bureau (EDB) has implemented several support measures for non‑local graduates staying to work, including expanding scholarship schemes and streamlining the IANG renewal process. These steps continue to strengthen the stay‑on intention of non‑local graduates and underpin rental demand. In addition, UGC data for the 2023/24 academic year show that non‑local student intake reached a new high, and the graduate cohort is expected to keep growing after 2026, indirectly reinforcing the demand side of the private residential leasing market.
FAQ
1. Must an IANG holder lease the same unit continuously for the first three years? No. IANG renewal does not impose a fixed‑address requirement. Graduates can change rental properties each year or opt for flexible arrangements such as sharing or co‑living spaces. For each renewal, the Immigration Department may ask for proof of ordinary residence in Hong Kong, and a tenancy agreement is one form of supporting document.
2. Can total three‑year rental spending fall significantly by increasing the number of flatmates? Yes. Splitting a three‑bedroom New Territories flat among three tenants can bring the monthly cost per person down to about HK$4,500, roughly 25% cheaper than a two‑person sharing arrangement. Quality of life and contract stability need to be weighed. If high‑density sharing is maintained throughout the three years, the total rental outlay could be compressed to HK$160,000–200,000.
3. Are non‑local graduates eligible for public housing or subsidised home ownership schemes in Hong Kong? Not automatically. Non‑permanent residents cannot apply for public rental housing. Home Ownership Scheme (HOS) flats require Hong Kong permanent resident status and compliance with asset limits. During the first seven years of stay, non‑local graduates normally only have the private rental option. After seven years they can consider applying for permanent residency and then for subsidised housing.
4. What are the sources and basis for the rental growth forecasts? The district‑level annual rental growth assumptions draw on the Rating and Valuation Department’s sub‑index changes over the past five years and analyses by several property consultancies on talent inflow and housing supply. The figures of 3.5% for Hong Kong Island, 2.8% for Kowloon and 2.2% for the New Territories reflect divergent trends driven by urban redevelopment and improved transport in new towns.
5. What alternatives exist if the first‑year monthly rental budget is below HK$6,000? Graduates can consider subdivided units in older walk‑up buildings in the northern New Territories (e.g. Sheung Shui, Fanling) or outlying islands (e.g. Tung Chung), where monthly rents can be as low as HK$4,500–5,500. Some graduates choose to live in Shenzhen and commute across the border daily, but they should pay close attention to the IANG requirement of ordinary residence in Hong Kong; prolonged stays in Shenzhen may affect renewal and the continuity calculation for future permanent residency applications.
6. Does the three‑year total spending projection include inflation and rates? The projection multiplies the basic monthly rent by twelve only. It does not account for government rates, ground rent or management fees (if the tenancy agreement makes the tenant liable). Inflation is partly reflected through the annual rental increase assumptions. Utilities such as water, electricity and gas should be estimated separately; an additional HK$9,000–12,000 per year is a reasonable provision for miscellaneous expenses.
7. Is it possible for an IANG graduate to purchase a property in the first three years? It is possible, but non‑local buyers are subject to a 15% Buyer’s Stamp Duty and a 15% Ad Valorem Stamp Duty, totaling 30%. For a HK$6 million residential unit in the New Territories in 2024, the stamp duty would amount to HK$1.8 million. Most non‑local graduates do not purchase property before acquiring permanent resident status; the home‑buying rate during the first three years is extremely low. Renting remains the overwhelming accommodation choice.
Conclusion
From 2024 to 2026, the rental expenditure of non‑local graduates under the IANG visa framework can be reliably projected to fall within the HK$216,000–306,000 range. This range is driven by three factors: starting salary, location choice and annual rental growth. The Immigration Department’s approval figures, UGC graduation and salary statistics, and university employment surveys jointly form the empirical backbone of this projection. Over the longer cycle of staying and developing a career in Hong Kong, the first three years are critical for building savings and adjusting to housing costs. Sensitivity analysis of district‑level increases can help graduates anchor their rental strategy early and create a financial buffer for the seven‑year path ahead.