In late June, during the Dragon Boat Festival holiday, the Eva Property Index (EPI) reported at 120.69 points, representing a week-on-week decline of 0.66% and terminating a six-week consecutive upward trend. From the beginning of this year to date, property prices have accumulated an increase of approximately 6.37%, although this still represents a correction of about 17.2% compared to the historical peak of 145.76 points recorded in August 2021.
Primary market sales continue to dictate the trajectory of secondary property prices, with the four major regional property price indices presenting three declines and one increase this week. Due to the lack of large-scale new project launches in New Territories East, New Territories West, and Hong Kong Island, primary market transactions remained subdued, prompting secondary market homeowners to widen their negotiation margins to attract buyers. Conversely, the sales performance of primary market inventory in Kowloon outperformed the other three regions. Coupled with the launch of certain new projects at market-aligned prices, this successfully captured market attention and drove both transaction sentiment and property prices upward within the district.
Regarding the rental market, the Eva Rental Index (ERI) reported at 119.93 points this week, marking a week-on-week increase of 0.16%. The index has risen for two consecutive weeks and has maintained a level above 119 points for four consecutive weeks, standing approximately 1.17% higher than the previous peak of 118.54 points recorded in August 2019. As the traditional summer leasing peak season commences, rental demand from non-local students is gradually emerging. It is anticipated that the overall rental trajectory will steadily trend upwards, with per-square-foot rents in specific housing estates expected to reach new highs, thereby driving the rent index further upward.
Looking ahead, primary market sales performance, developers' pricing strategies, the interest rate decisions of the United States Federal Reserve, and Mainland Chinese policies will all influence the direction of property prices. Among these factors, the recent measures by Mainland China to tighten capital outflows require particular attention. Such moves may impact the purchasing power of Mainland buyers acquiring properties in Hong Kong, subsequently exerting pressure on overall transaction volumes and property market sentiment.
Regional Indices Record Three Declines and One Increase; Slow Primary Sales Pressure the Broader Market
This week, the property price indices for the four major districts recorded three drops and one rise. New Territories East reported 118.77 points, down 1.23% week-on-week; New Territories West reported 124.1 points, down 0.43%; and Hong Kong Island reported 113.05 points, down 0.42%. All three districts ended their previous consecutive upward trends. Kowloon, however, reported 118.78 points, up 1.4% week-on-week, making it the only district to record an increase. Overall, excluding Kowloon, the sales of first-hand new projects and unsold inventory in the other districts have slowed down. Coupled with the fact that low-priced listings in the second-hand market were digested earlier, many prospective buyers have adopted a wait-and-see attitude, putting pressure on overall transaction volumes and property prices.
Primary transactions in New Territories East were primarily supported by La Mirabelle I and The Pavilia Farm III, which sold 12 and 4 units respectively during the period. In New Territories West, the Novo Land and Wetland Seasons Bay series each sold only 2 units this week. On Hong Kong Island, transaction volumes similarly slowed due to the absence of large-scale new project launches, with the Headland Residences and La Montagne Phase 4B recording 8 and 4 transactions respectively during the period. The subdued primary market and lack of focal points weakened the secondary market's absorption capacity in these three regions, compelling homeowners to expand their negotiation margins to attract buyers, which in turn led to a decline in property prices.
Victor Chung, Senior Area Sales Manager at Midland Realty, noted that property prices in New Territories West faced downward pressure this week. This was primarily due to the annual examination season in June, during which many homeowners with school-age children suspended property viewings. This dampened transaction activity and dragged down short-term price performance. He added that high-quality listings in the Tsuen Wan district had already been gradually absorbed earlier; as a result, the remaining available units are of relatively lower quality, leading to a decline in both transaction volume and prices.
However, looking ahead, the developer of the new Garden Regency project in Yuen Long, New Territories West, is about to release the sales brochure and open show flats. The developer stated that they have already received over a thousand inquiries, reflecting that the market still possesses a certain level of absorption capacity.
Property prices in the Kowloon district halted their decline and rebounded, primarily because the sales of primary market inventory outperformed other regions. Notably, the MIAMI QUAY and The Pavilia Forest series sold 10 and 7 units respectively, while Phase 1A of Victoria Voyage, Connext, and Phase 2 of Highwood sold a combined total of 10 units. Driven by primary market transactions, asking prices from secondary homeowners in the district have become firmer.
Furthermore, 22 Square, a new project in Yau Ma Tei, released its first price list on June 23 with a discounted average price of 17,545 dollars per square foot, which is approximately ten to sixteen percent lower than recent new projects in the same district. This market-aligned pricing attracted market attention and stimulated the atmosphere within the district.
During the Dragon Boat Festival long weekend from June 19 to 21, property viewing activities in the Kowloon district were robust. Data from Midland Realty showed that viewing appointments at seven major indicator estates in the district recorded approximately 262 groups, representing a week-on-week increase of 35.05 percent. Four major indicator estates tracked by Hong Kong Property Services also recorded approximately 213 groups, an increase of 12.7 percent week-on-week. The rise in holiday viewing traffic provided support for secondary property prices in the district.
28Hse Limited Data Researcher Alex Cheung expects the EPI to fluctuate between 112 and 124 points in the short term. The future trajectory of the broader market will depend on primary inventory sales, developers' pricing strategies, the interest rate decisions of the United States Federal Reserve, and the impact of Mainland China's recent tightening of capital outflows on buyer psychology and market sentiment.
Rent Index Rises 0.16% for Two Consecutive Weeks, Stabilizing Above 119 Points for Four Consecutive Weeks
Entering the summer leasing peak season, market rents continue to rise steadily. This week, the ERI reported at 119.93 points, an increase of 0.16 percent week-on-week, rising for two consecutive weeks and stabilizing above the 119-point level for four consecutive weeks. The data reflects robust absorption capacity in the rental market, with housing demand from non-local students being particularly prominent. Since the beginning of this year, the index has accumulated an increase of approximately 2.55 percent, standing about 1.17 percent higher than the peak of 118.54 points recorded in August 2019.
Rental trends across different districts showed mixed performance. The Hong Kong Island district reported at 130.63 points, up 0.83 percent week-on-week, marking a three-week consecutive rise. New Territories East reported at 123.1 points, remaining unchanged week-on-week. The Kowloon district reported at 124.35 points, down slightly by 0.11 percent week-on-week, falling for three consecutive weeks. New Territories West reported at 137.14 points, down 0.44 percent week-on-week, halting its upward trend from the previous week.
The rise in Hong Kong Island rents was primarily driven by high-priced leasing transactions in specific estates. For example, a four-bedroom unit on a high floor in Block 1A of Blue Coast, with a saleable area of 1,267 square feet, was leased by a family for 92,000 dollars per month. The rent of approximately 72.6 dollars per square foot is higher than the 28Hse platform's 90-day average of 58 dollars. A three-bedroom unit on a very high floor in Block 2B of Phase 4A of La Montagne, with a saleable area of 915 square feet, was also leased by a local family for 67,000 dollars, translating to a per-square-foot rent of about 73.2 dollars, which similarly exceeds the platform's concurrent average of 60 dollars. Additionally, an open-plan unit on a high floor in Block 5 of Novum West, with a saleable area of 215 square feet, was leased by a Mainland student for 21,000 dollars. The per-square-foot rent reached 98 dollars, also higher than the network's 90-day average of 76 dollars. This substantial demand drove rents upward within the district.
Regarding New Territories East, overall rents remained unchanged as transactions in the district were mostly aligned with market rates. Taking a two-bedroom unit on a high floor in Block 5 of Prima Villa as an example, the unit has a saleable area of 393 square feet and was leased for 18,800 dollars per month. The per-square-foot rent of approximately 48 dollars is comparable to the recent average on 28Hse, resulting in no significant fluctuation in the district's overall rent.
Rents in Kowloon and New Territories West softened slightly, mainly affected by certain transactions executed below market prices. In Kowloon, a three-bedroom unit at Merry Court with a saleable area of 679 square feet was leased for 26,000 dollars per month. The per-square-foot rent of about 38 dollars is lower than the 28Hse 90-day average of 41 dollars. A 343-square-foot one-bedroom unit at Victoria Skye was leased for 17,500 dollars per month, with a per-square-foot rent of approximately 51 dollars, slightly below the platform's statistical average of 53 dollars.
In New Territories West, a 448-square-foot unit at the Esplanade was leased for 16,000 dollars per month. The per-square-foot rent of about 35.7 dollars is lower than the 50-dollar average reflected on 28Hse. A 575-square-foot three-bedroom unit at Parkland Villas was co-rented by three Mainland students for 18,500 dollars, translating to a per-square-foot rent of about 32.2 dollars, which is below the average of 34 dollars. Such transactions slightly dragged down the overall rental levels in these two districts.
As for the decline in rents in New Territories West this week, Chung explained that June and July are traditionally the peak season for lease terminations. Tenants generally need two to three weeks to vacate the properties, during which the volume of available listings on the market decreases accordingly. At the same time, prospective tenants have turned to a wait-and-see approach, and landlords are unwilling to reduce prices, bringing leasing transactions to a stalemate. Faced with sluggish leasing activity, sporadic low-priced cases have consequently dragged down the overall rent in the district. He expects that as the lease termination procedures are completed, rental listings will gradually be rolled out to the market in July.
Looking ahead, Cheung anticipates that the ERI will fluctuate between 114 and 124 points in the short term. As the summer leasing peak season unfolds, the increased housing demand from incoming professionals and Mainland students is expected to drive overall transaction volumes, and per-square-foot rents in certain estates are poised to hit new highs again. In the long run, with strong rigid demand, the actual market demand for housing remains robust. It is projected that overall rents will steadily improve this year, with a full-year increase ranging between two and four percent. After breaking through the 2019 peak, the market is believed to still possess sufficient momentum to support rents in seeking further highs.
The above indices reflect market conditions from June 19, 2026, to June 25, 2026.
