Entering the second week of May, the Eva Property Index (EPI) stood at 118.59 points, edging up by 0.58% week-on-week and halting the previous week's decline. Year-to-date, property prices have accumulated a 4.52% increase, though they remain approximately 18.64% below the historical peak of 145.76 points recorded in August 2021.
The property price indices across the four major districts showed mixed performance this week, with the broader market primarily influenced by the sales of first-hand new projects and remaining inventory. In the urban areas, focal new projects such as Phase 2 of Highwood and Phase 3 of One Victoria Cove received favorable market responses, driving up secondary property prices in Kowloon. The sales of first-hand inventory on Hong Kong Island also remained stable. In the New Territories, despite the satisfactory sales of Lime Spark in New Territories West, the district's property prices were slightly pressured by the lackluster sales of Grand Mayfair III. Meanwhile, New Territories East saw a softening in both transaction volume and prices due to a lack of large-scale focal new projects.
The latest Eva Rental Index (ERI) was reported at 118.36 points, dipping slightly by 0.09% week-on-week and ending a six-week gaining streak. Year-to-date, rents have accumulated an increase of approximately 1.21%, trailing the historical high of 118.54 points recorded in August 2019 by a mere 0.15%. Entering the traditional peak leasing season from May to August, coupled with potential relocations by family tenants following their children's school examinations, the rental index is expected to break through its historical high in the short term.
Looking ahead, developers' launch paces and pricing strategies, along with the interest rate trends of the Federal Reserve, will continue to dictate the direction of the property market. On the leasing front, transaction volumes are expected to rebound, driven by summer rental demand. Overall, both property prices and rents are anticipated to trend steadily upwards in the near term.
District Property Prices See Two Advances and Two Declines; Kowloon Leads with a 3.8% Surge
The property price indices of the four major districts diverged this week, presenting two advances and two declines, largely dictated by the sales performance of first-hand new projects in respective areas. In the urban sectors, Kowloon and Hong Kong Island benefited from ideal new project sales, with both indices rising. Notably, the Kowloon index stood at 120.99 points, surging 3.8% week-on-week to top the growth chart. Hong Kong Island rose for the third consecutive week to 108.77 points, up 1.84% week-on-week. Conversely, the New Territories underperformed. New Territories East ended a three-week rally, reporting 116.63 points (down 0.35% week-on-week), while New Territories West fell for the second consecutive week to 121.66 points (down 0.02% week-on-week). Analysts suggest that the robust urban property prices were primarily bolstered by the heated sales of multiple new launches and inventory projects, which successfully stimulated secondary market sentiment. In contrast, the lack of major focal new projects in New Territories East and the mixed sales performance diluting purchasing power in New Territories West led to a strong wait-and-see attitude among buyers. Consequently, secondary market owners had to widen their negotiation margins, putting short-term pressure on property prices.
Outstanding first-hand sales in Kowloon propelled overall property prices upward. Notably, Phase 2 of Highwood sold out all 200 units across two rounds of sales, with the developer raising prices by approximately 2.42% for the additional batch, demonstrating robust market absorption. Phase 3 of One Victoria Cove also successfully sold 189 out of 200 units launched over two rounds. Furthermore, inventory projects such as KT Marina, MIAMI QUAY, and the KOKO HILLS series recorded stable transactions. Driven by the buoyant first-hand sentiment, both transaction volumes and prices in the district's secondary market performed well in tandem.
Looking ahead, Phase 2 and Phase 4 of One Victoria Cove, along with Victoria Blossom Phase 3, applied for pre-sale consent between March and April this year. This reflects developers' confidence in the district's future market and their readiness to launch new projects.
On Hong Kong Island, although the brand-new project PORTO saw relatively sluggish sales in its first round—selling only 49 out of 86 units—it did not significantly impact district property prices. Other first-hand inventory in the area performed ideally, providing sufficient support for upward price movement. Phase 6A of Deep Water South, Blue Coast series, and the Headland Residences each recorded between 7 and 11 transactions. Additionally, following the initial sales round, the developer of PORTO rolled out an additional 18 units and reduced the discount by 3%, lowering the maximum discount rate to 16.5%. This disguised price hike indicates the developer's sustained confidence in the district's market outlook.
In the secondary market, according to data from Hong Kong Property Services, weekend viewing appointments at two major indicator housing estates on Hong Kong Island recorded 31 groups, an increase of 6.9% week-on-week. This reflects a solid desire among buyers to enter the market, with the expanding client base providing further support for property prices.
In New Territories East, first-hand transactions slowed due to the absence of brand-new focal projects, supported solely by 21 transactions recorded at La Mirabelle I. With a lack of new launches in the district, most buyers adopted a wait-and-see approach, resulting in a deceleration in the pace of secondary market transactions.
May Chu, Managing Director of Love Property Agency Limited, stated that viewing volumes in the district dropped by 30% week-on-week. Due to the scarcity of vacant units available for viewing on the market, many listings are sold with existing tenancies. This makes it difficult for first-time buyers to inspect the actual condition of the units, further intensifying the wait-and-see sentiment and putting short-term pressure on property prices. Data from Midland Realty also showed that weekend viewing appointments at two major indicator estates in New Territories East stood at 163 groups, down 2.98% week-on-week.
The property price trend in New Territories West was similarly dominated by the first-hand market, though sales performances varied across projects. Lime Spark sold out all 154 units in its first round, prompting the developer to release additional units with price hikes of up to 4.2%. However, Grand Mayfair III sold only 33 out of 138 units, and Gold Coast Bay - The Uppland recorded only sporadic transactions. To enhance competitiveness, secondary market owners in the district generally had to widen their negotiation margins. Midland Realty data indicated that weekend viewing appointments at two major indicator estates in New Territories West stood at 99 groups, a week-on-week drop of 3.88%.
Fleming Lee, Associate Sales Director of Centaline Property Agency Limited, analyzed that Lime Spark successfully captured market focus, diluting the viewing volumes and purchasing power of other projects in the same district, which led to a slight softening of property prices in New Territories West. He added that there is a shortage of small-to-medium vacant units priced below $10 million in the district. Furthermore, some buyers favor older properties and place greater emphasis on the physical condition of the units, such as potential water leakage issues. The inability to view properties directly slowed down the transaction progress. However, he expects that following the conclusion of student examinations in mid-June, upgrading or renting activities by family tenants will increase, providing support for district transactions. Additionally, macro factors such as the recent easing of Sino-US relations will be conducive to driving an overall recovery in property market sentiment in the long run.
In summary, the property market this week exhibited a "robust urban, quiet New Territories" landscape. Kowloon and Hong Kong Island benefited from the synergistic effects of hot-selling new projects, driving secondary transactions and property prices. Conversely, the two New Territories districts saw weakened absorption capacity due to a lack of focus or mixed new project sales, placing short-term pressure on property prices.
Alex Cheung, Data Researcher at 28Hse Limited, anticipates that developers' future launch paces, pricing strategies, and the Federal Reserve's interest rate trends will continue to dictate the broader market direction. As the phenomenon of "mortgage payments being cheaper than rent" becomes increasingly prevalent, the overall EPI is expected to fluctuate within a narrow range between 112 and 124 points in the short term.
Rental Index Consolidates at High Levels, Merely 0.15% from Historical Peak
Following a recent consecutive upward streak, Hong Kong's residential rents recorded a slight correction this week. The latest ERI stood at 118.36 points, edging down by 0.09% week-on-week, softening slightly at high levels but remaining above the 118-point mark for the third consecutive week. However, the index has accumulated a 1.21% increase so far this year, sitting just 0.15% below the historical peak of 118.54 points recorded in August 2019, reflecting that overall rental levels remain elevated.
Rental trends across the four major districts varied, presenting two advances and two declines. Hong Kong Island and New Territories West recorded drops; Hong Kong Island reported 125.65 points, down 1.62% week-on-week, marking a three-week losing streak, while New Territories West reported 136.84 points, down 0.44% week-on-week, halting the previous week's gain. On the other hand, Kowloon and New Territories East both rebounded from declines. Kowloon reported 125.63 points (up 1.3% week-on-week), and New Territories East reported 122.04 points (up 0.63% week-on-week). The data indicates that leasing performance developed individually across districts, with specific demand depending on the area.
Regarding the rental rebound in Kowloon, analysts attribute it primarily to active transactions of new and semi-new projects. For instance, the first-hand project Soyo Square in Cheung Sha Wan and K. Summit in Kai Tak both recorded transactions, with per-square-foot rents stabilizing at $52 to $53. A considerable number of these were leased by Mainland professionals, injecting momentum into the district's leasing market, with rental yields for some units reaching 3.3%. Such substantial leasing demand and ideal rental returns served as crucial drivers supporting the district's rental uptick this week.
Rents in New Territories East also rebounded this week. Chu noted that a high-floor, three-bedroom Unit A in Block B of The Grandville in Fo Tan, inclusive of a parking space, was leased for $34,000. The per-square-foot rent reached a record high of $45 for the estate, surpassing the 90-day average of $44 shown by 28Hse data, reflecting a persistent shortage of rental listings in the district. Furthermore, although the summer peak leasing season has not officially commenced, Mainland students planning to study in Hong Kong have already begun scouting for units in the Tai Po and Tai Wai areas in advance. Plover Cove Garden and Tai Po Centre in Tai Po, as well as Golden Lion Garden in Tai Wai, all recorded leasing cases by Mainland students. Notably, a Mainland student seeking to secure a unit at Golden Lion Garden in Tai Wai opted to prepay a year's rent in a lump sum. The unit was ultimately leased at a per-square-foot rent of $51, higher than the 90-day average of $47 indicated by 28Hse data. Such above-market leasing cases have further driven up the overall rental levels in the district.
Chu added that currently, about 30% of the tenant base in the New Territories East leasing market comes from professionals, investment immigrants, corporate relocations, and parents accompanying students. She pointed out that this is linked to the government's relaxed policies regarding non-local students studying in primary, secondary, and tertiary institutions in Hong Kong, with the associated housing demand providing support for the district's rents.
Looking ahead, Cheung analyzes and expects the ERI to hover between 114 and 120 points in the short term. With the approach of the summer peak leasing season, coupled with some family tenants considering relocating after their children's exams, leasing demand and transaction volumes in the market are expected to increase. The rental index has the potential to break through the 2019 historical peak in the near term. In the long run, the overall rental trend for this year is projected to maintain a steady upward trajectory, with a full-year increase estimated at between 2% and 4%.
The above indices reflect market conditions from May 08, 2026, to May 14, 2026.
