Both property prices and rents posted gains this week, with rents reaching a record high. The Eva Property Index (EPI) stood at 120.74 points, rising 0.18% week-on-week to halt its recent decline, though it remains approximately 17.17% below its historical peak of 145.76 points recorded in 2021. The Eva Rental Index (ERI) stood at 122.88 points, up 0.34% week-on-week. This marks its third consecutive week of growth and its eighth consecutive week holding steady above the 122-point level, surpassing the previous all-time high of 122.53 points set in late September this year.
Across the four major regions, property prices recorded three gains and one decline. Solid sales performances at SIERRA SEA Phase 2C (2) and THE ATLAS I drove property prices up in New Territories East and Kowloon. An increase in property viewings on Hong Kong Island supported a positive price trend in the district. Conversely, New Territories West faced downward pressure due to a lack of new project launches and a decline in viewing volume. Meanwhile, rents across all four major regions rose comprehensively, with each district recording transactions above the average per-square-foot market rent. Frontline agents noted that similar above-average transactions were also observed at Yee Wo Place in Causeway Bay. Rents in New Territories West climbed 0.94% week-on-week, registering the highest growth among the four regions.
Data researchers at 28Hse Limited anticipate that the future trajectory of US Federal Reserve interest rates will dictate property price trends. With both positive and negative factors currently coexisting in the property market, EPI movements are expected to remain range-bound and stable over the next two months. As local leasing demand remains robust and sustained, the ERI is projected to maintain its upward momentum and continue testing peak levels, with full-year rents expected to increase by approximately 3% to 8%.
SIERRA SEA and THE ATLAS I Drive Regional Property Prices Up Across Three Districts; Short-Term Trend Expected to Remain Range-Bound
Overall property market sentiment in Hong Kong remains positive. This week, regional property price indices generally performed well, recording gains in three districts and a decline in one. Both New Territories East and Kowloon rebounded, reporting 118.41 points and 120.52 points respectively, representing week-on-week increases of 0.95% and 0.75%. Hong Kong Island also rose steadily, increasing for two consecutive weeks to 109.80 points, a slight uptick of 0.23%. Conversely, New Territories West faced downward pressure against the broader market trend, reporting 124.29 points, down 1.11% week-on-week and marking a two-week consecutive decline.
The upward trend in New Territories East property prices was primarily driven by the robust sales performance of Phase 2C (2) of the large-scale new development, SIERRA SEA, in Sai Sha. The first two rounds of sales, offering 142 and 128 units respectively, were completely sold out. An additional 65 transactions were recorded via tender, absorbing a significant amount of purchasing power. La Mirabelle series in the same district also recorded 11 transactions of remaining inventory. Encouraged by the enthusiastic market response, the developer promptly released price list No. 4, offering 124 units at original prices, with an average discounted price of $14,768 per square foot. The strong absorption rate of new projects prompted secondary market owners in the district to narrow their room for negotiation and raise asking prices, thereby driving up overall property values.
Similarly, the property price growth in Kowloon was fueled by robust primary market sales. The second round of 220 units at THE ATLAS I was all sold out, with another 3 transactions recorded via tender. Other projects in the district, such as The Boundary, 33 Clear Water Bay (Phase 1), DOUBLE COAST III, and KT Marina Phase 2, also recorded between 4 to 10 transactions each. Capitalizing on this momentum, developers accelerated their project launches; THE ATLAS I and 33 Clear Water Bay (Phase 1) successively announced new price lists with aggressive pricing, reflecting developers' confidence in the market outlook. Data from Midland Realty indicated that weekend viewing appointments at seven major indicator estates in Kowloon slightly increased by 1.03% to 197 groups. Ample market absorption capacity strengthened secondary owners' confidence in their asking prices, pushing up the overall property prices within the district.
Hong Kong Island currently lacks large-scale focal new projects, leaving the primary market mainly supported by 6 transactions in the The Headland Residences series. Nevertheless, property prices in the district performed well, benefiting from an increase in property viewing activities. Midland Realty data showed that weekend viewing appointments at the four major indicator estates on Hong Kong Island reached 143 groups, up 1.42% week-on-week. Many prospective buyers who missed out on primary launches gradually returned to the secondary market to search for units, and their purchasing intent drove a slight increase in property prices.
On the other hand, primary market transactions in New Territories West were relatively subdued, mainly supported by 7 transactions at Garden Regency during the period. Lacking the stimulus of large-scale new projects, market support was relatively weak. To facilitate transactions, secondary market owners generally had to widen their room for negotiation, leading to short-term downward pressure on property prices in the district.
Looking ahead at macroeconomic conditions, the US Federal Reserve maintained interest rates unchanged in late October, and Hong Kong banks correspondingly kept their prime rates unchanged, aligning with market expectations. However, market concerns persist that high inflation in the US may trigger further interest rate hikes. With the widening interest rate spread between Hong Kong and the US, local banks may need to follow suit in the future, which could impact property market sentiment. Despite this, end-user demand in Hong Kong remains resilient. As of October 27, primary market transactions this month have exceeded 1,700, surpassing the 1,000-transaction mark for three consecutive months. 28Hse Limited Data Researcher Alex Cheung maintains his previous forecast, estimating that the EPI will fluctuate between 112 and 124 points in the short term, with the overall property market trend expected to remain range-bound and stable over the next two months.
Rent Index Rises 0.34% to Record High; All Districts Record Gains
The overall rental market in Hong Kong has maintained its upward momentum. This week, the ERI stood at 122.88 points, representing a week-on-week (w-o-w) increase of 0.34%. The index has risen for three consecutive weeks and remained above the 122-point level for eight consecutive weeks, breaking the previous record of 122.53 points set in late September this year to reach a new all-time high. Rental levels across all four major districts trended upward. New Territories West recorded the most significant growth, rising by 0.94% w-o-w to 142.49 points, marking a two-week consecutive increase. Hong Kong Island reported 133.26 points (up 0.35% w-o-w), New Territories East reported 125.87 points (up 0.26% w-o-w), and Kowloon reported 127.10 points (up 0.17% w-o-w).
Driven by solid local rental demand, New Territories West saw multiple estates consecutively recording high-priced transactions. A two-bedroom unit (Saleable Area: 412 sq. ft.) in High-floor Unit G, Block 2, Venice Gardens in Tuen Mun, was leased to a local spin-off household for HK$12,000 per month, translating to a saleable rent of HK$29.1 per square foot (psf). In the same district, a studio unit (Saleable Area: 164 sq. ft.) in High-Level Room 3, T Plus, was rented by a medical professional for HK$8,800 per month (HK$53.7 psf) due to commuting convenience. Compared to the 90-day average rent psf on the 28Hse platform, these two transactions were approximately 3.93% and 7.4% higher, respectively, reflecting tenants' willingness to pay a premium for their preferred units in the district.
Hong Kong Island also frequently recorded high-priced leases, with small-sized units demonstrating particularly outstanding psf performance. A two-bedroom unit (Saleable Area: 497 sq. ft.) in High-Level Room E, Block 9, Island Resort in Siu Sai Wan, was leased for HK$25,500, or HK$51.3 psf. In Sai Ying Pun, an extremely low-floor studio unit with a terrace at Des Voeux W Residence (Saleable Area: 177 sq. ft.) was leased for HK$18,500, reaching a remarkable HK$104.5 psf. These transactions were about 6.88% and 22.94% higher than the 28Hse 90-day average rent psf, respectively. Eric Tsang, Sales Manager of Soho Property Hong Kong Company, noted that a two-bedroom unit (Saleable Area: 430 sq. ft.) at Yee Wo Place in Causeway Bay was leased this week for HK$19,300, over 4% higher than the estate's recent average rent of HK$18,500. Such high-priced transactions have further driven up the overall rental levels in the district.
Leasing activity in New Territories East and Kowloon remained equally robust, with diverse tenant sources continuing to support the broader market. A two-bedroom unit (Saleable Area: 391 sq. ft.) in Mid-floor Unit E, Block 1, Royal Jubilee in Sheung Shui, was leased to a local tenant for HK$13,500, or HK$34.5 psf. In Ho Man Tin, a top-floor two-bedroom unit (Saleable Area: 522 sq. ft.) in Block 2B of In One Above attracted an incoming talent professional due to its brand-new condition and excellent transport connectivity. The tenant paid a year's rent upfront in a lump sum, leasing the unit for HK$38,000 per month, or HK$72.8 psf. The unit rents psf for both transactions were significantly higher than the 28Hse average during the period, confirming the strong overall rental demand in both districts.
Despite entering mid-to-late October, citywide leasing demand remains unabated, with this robust demand driving overall rents to test peak levels. In light of this, Cheung maintained his previous forecast, anticipating that the unit rent psf of premium estates across various districts will continue its steady upward trajectory and potentially set new records. He estimates that the ERI will fluctuate between 114 and 126 points in the short term, with full-year rental growth projected to range from 3% to 8%.
The above indices reflect market conditions from October 16, 2026, to October 22, 2026.
