When I browse through the Internet looking for an affordable yet comfortable hotel (not hostel) I was worried since most of the hotels there charged around RM500 and above, even the not so great hotel/hostel is expensive. Therefore I have opted for Dragon Hostel at around RM135 net per night. The location is great since there is easy access to Mongkok Train Station. However, if you have the stamina, you can simply walk to Temple Street, it takes maybe around 30 minutes. The shops nearby are mostly electrical items or handphones and sport wear. Not much of modern lady wears unless you are looking for branded lady clothing. The hostel is close to the famous Langham Palace.
However, do not expect much from the accommodation. It is quite noisy since it is a flat converted into hostel in a building with another hostel. However, the staff are helpful and friendly. So if you are on budget this is the best option. The picture shown in www.hostels.com shows true picture. The size of the room is hardly enough for Asian. But as I said, Hong Kong accommodation is simply too expensive. And don't forget to bring your own shampoo and soap since they are not provided. You have to get the towels from the "reception area."