Following the long Easter holiday, the market requires time to digest holiday factors, causing the Eva Property Index (EPI) to soften from its peak this week. The index currently stands at 117.69 points, recording a slight week-on-week decline of 0.77% and terminating a five-week consecutive rise. As of mid-April this year, property prices have accumulated a provisional growth of 2.53%; however, compared to the historical high of 145.76 points recorded in August 2021, current prices still reflect a 19.26% deficit.
Primary market sales continue to dictate the trajectory of secondary property prices, with three of the four major districts recording price declines this week. Property prices across Hong Kong Island, New Territories East, and New Territories West remain under pressure. As new projects in Kowloon and the focal development The Pavilia Farm III have absorbed the broader market's purchasing power, trading activity for secondary properties and other new launches in Hong Kong Island, New Territories West, and even New Territories East has dampened. Furthermore, buyers have grown increasingly cautious, predominantly seeking bargain properties in the secondary market. This has compelled owners to reduce their asking prices to secure sales, consequently dragging down overall property values. Conversely, robust primary market sales in Kowloon have stimulated sentiment in the secondary market, providing solid support for property prices within the district.
Regarding the rental market, the latest Eva Rental Index (ERI) is reported at 117.42 points, edging up 0.02% week-on-week and marking a three-week consecutive rise. The index has accumulated a 1.2% increase so far this year, trailing the historical peak of 118.54 points in August 2019 by a mere 0.94%. Although April is traditionally a low season for leasing, rental demand remains steady, sustaining rents at elevated levels.
Looking ahead, developers' pace of new launches and the sales performance of remaining inventory will continue to influence property price trends. On the leasing front, demand is expected to surge with the approaching summer peak season. In the short term, once the market fully digests the holiday factors, both property prices and rents are poised for steady upward momentum.
Kowloon Primary Projects and The Pavilia Farm III Capture Market Focus; Regional Property Prices Record Three Declines and One Gain
The regional property price indices recorded three declines and one increase this week. New Territories West halted its previous week's upward trend, while New Territories East fell for the second consecutive week, reporting 120.92 points and 116.23 points respectively, representing week-on-week drops of 1.12% and 0.98%. Hong Kong Island also declined for the second week in a row to 107.57 points, down 0.6% week-on-week. Meanwhile, Kowloon ended a two-week losing streak, posting 114.44 points with a marginal week-on-week increase of 0.03%, making it the sole region to record price growth this week. The general downward pressure across most districts is mainly due to primary projects in Kowloon and The Pavilia Farm III successfully drawing away focus and purchasing power from other areas. This has resulted in quieter trading in those districts, forcing owners to widen their room for negotiation.
In New Territories West, the sales of remaining stock across multiple new projects were lackluster, with primary transactions concentrated in the Gold Coast Bay series, which recorded 10 deals. Fleming Lee, Associate Sales Director of Centaline Property Agency Limited, noted that cross-district new launches such as The Pavilia Farm III and One Victoria Cove Phase 1 have become the center of market attention, siphoning off a substantial number of prospective buyers. As buyers generally adopt a wait-and-see attitude towards the pricing and sales of these large-scale projects, both secondary viewing activities and transaction volumes in the Tsuen Wan district have plummeted. Consequently, some owners have widened their room for negotiation to enhance the attractiveness of their listings, exerting downward pressure on regional prices.
Forecasting the region's future market, Lee analyzed that the first brand-new project in the district in nearly 20 years, Lime Spark, has recently uploaded its sales brochure and is preparing to announce its pricing. He expects the project's launch to unleash accumulated purchasing power within the district. The new project is anticipated to dilute the secondary market customer base and intensify market competition. Taking all factors into account, regional property prices are expected to fluctuate within a narrow range in the short term.
In New Territories East, the mixed sales performance of two new projects this week has similarly pressured regional home prices. Although The Pavilia Farm III successfully attracted significant focus and purchasing power from potential buyers, facilitating 72 transactions this week for a fair performance, the final phase of the LOHAS Park primary development, La Mirabelle I, sold only 83 units this week. This accounts for a mere 31.8% of the 261 units offered, reflecting a subpar performance. With average market absorption, secondary owners are willing to widen their negotiation margins, leading to a continuous downward trend in overall regional property prices.
Looking ahead for New Territories East, The Pavilia Farm revised price lists No. 2A and 3A this week, marking up the prices of 38 units by 4.4% to 15.4%. This move reflects the developer's confidence in sales, believing that the district's purchasing power is sufficient to absorb the price hikes of the new project.
On Hong Kong Island, primary sales have likewise decelerated, with the broader market supported solely by 11 transactions in the Deep Water South series. Lacking the momentum of new project launches, buyers have largely maintained a wait-and-see stance, resulting in a slowdown in secondary transactions and putting short-term pressure on property prices.
In Kowloon, satisfactory primary sales this week have elevated the overall market entry sentiment. As some prospective buyers who missed out on new launches returned to the secondary market, both transaction volumes and prices in the district have improved synchronously. In the primary market, the Double Coast series sold a total of 124 units, with Double Coast III accounting for the majority at 115 units. During two rounds of sales on the 10th and 16th of this month, this phase sold 85 and 27 units respectively, representing the vast majority of units offered. The robust sales of new projects have also stimulated transactions for remaining inventory in the same district; projects such as the Victoria Voyage series, Baker Circle Dover, Phase 1 of Highwood, and the MIAMI QUAY series recorded between 10 and 38 transactions each, reflecting a steady overall performance.
Furthermore, One Victoria Cove Phase 1 released its first price list on the 15th of this month, with an average discounted price of $18,666 per square foot. Compared to the initial average launching prices of $20,988 and $18,999 for the same district's Chester and 26 Ko Shan respectively, this represents discounts of approximately 11% and 1.8%. The project's strategy of pricing close to market levels has attracted significant attention from potential buyers, reflecting the developer's pragmatic pricing approach aimed at accelerating inventory clearance.
Viewing volumes also indicate a gradual recovery in district transactions. According to Midland Realty data, seven major indicator housing estates in Kowloon recorded 197 viewing appointments this weekend (11th to 12th), a slight increase of approximately 3.1% from the 191 appointments recorded the previous weekend (4th to 5th). This suggests that the regional market has taken the lead in digesting the impact of the long Easter holiday. Coupled with a smaller-than-expected dilution effect of new projects on secondary market clientele, this has provided solid support for regional property prices this week.
Frontline property agents noted that the rise in secondary home prices in the district is primarily driven by a reduction in available listings and buyers' proactive market entry attitudes. May Chu, Managing Director of Love Property Agency Limited, stated that the current volume of secondary listings in the district is limited. Some owners have adopted a firmer stance on asking prices, with instances of price hikes emerging. Taking Mantin Heights in Ho Man Tin as an example, an owner of a two-bedroom unit listed the property at market price in the morning, only to raise the asking price by $200,000 by the afternoon of the same day.
She added that a three-bedroom en-suite unit in Tower 5, Low-Level B of Stars by the Harbour, with a saleable area of 1,076 square feet, recently changed hands for $23.8 million, exceeding the bank valuation of $22.8 million by $1 million. Such transactions reflect a shortage of premium listings in the district. Amidst an improving market sentiment, buyers are willing to "chase prices" to secure their preferred properties. This, combined with lagging bank valuations, has consequently driven up overall secondary transaction prices.
In summary, this week's property price trajectory was mainly dominated by the primary market. The New Territories and Hong Kong Island were affected by large-scale new projects capturing buyers or a lack of market focus, leading to a significant diversion of secondary buyers. Owners were compelled to widen negotiation margins, thereby pressuring property prices. Conversely, the Kowloon region, boasting robust primary sales, benefited from the return of prospective buyers to the secondary market. Coupled with a shortage of premium listings, this drove a slight counter-trend increase in the district's property prices.
As the market takes time to digest the effects of the long Easter holiday, secondary transactions are expected to regain vitality in the short term. Meanwhile, secondary property prices will continue to be swayed by the pace of new project launches. The EPI is projected to fluctuate between 110 and 124 points.
Rental Index Edges Up 0.02%, Rising for Three Consecutive Weeks; All Regions Show Positive Growth
Rents in Hong Kong are hovering at high levels continuously. This week, the ERI reported 117.42 points, edging up 0.02% week-on-week and marking a three-week consecutive rise. The index has accumulated a 1.2% increase so far this year, trailing the historical peak of 118.54 points in August 2019 by a mere 0.94%. Although April is traditionally a low season for leasing, market demand for rental properties remains stable, sustaining rents at elevated levels.
Rental indices across all four major regions recorded increases. Hong Kong Island rose for the second consecutive week to 127.57 points, up 1.42% week-on-week. New Territories West ended a two-week decline, reporting 134.54 points with a 0.89% increase. New Territories East and Kowloon also performed well, reporting 121.8 points and 125.3 points respectively, representing slight week-on-week increases of 0.16% and 0.09%. Notably, Kowloon has experienced a four-week consecutive rise.
Regarding the rental rebound in New Territories West, Lee pointed out that premium small units in the Tsuen Wan district have always been in short supply. Coupled with stable leasing demand from family tenants, rents have remained persistently high. A slight increase in market demand or a reduction in available listings is sufficient to drive up rental prices in the district.
In the Kowloon region, rents have similarly risen for four consecutive weeks. Chu stated that areas such as Kowloon Tong, Kowloon City, and Ho Man Tin benefit from prestigious school networks, making rental properties highly sought after. She revealed that approximately 60% of tenants in the district are families of professionals. Whenever a rental property becomes available, it is typically leased out successfully within a week. This demand-outstripping-supply dynamic renders the district's rents highly resilient, remaining elevated over the long term.
Looking ahead, the 28Hse Research Department anticipates that the ERI will fluctuate between 114 and 120 points in the short term. As the summer leasing peak season approaches, it is expected to unleash further rental demand. In the long run, the full-year rental trajectory is projected to remain positive, with an estimated growth ranging from 2% to 4%.
The above indices reflect market conditions from April 10, 2026, to April 16, 2026.
