Heading into mid-to-late September, the Hong Kong property market recorded growth in both the sales and rental sectors. The latest Eva Property Index (EPI) stood at 121.28 points, representing a week-on-week increase of 0.47%. Despite rising for four consecutive weeks, the index remains approximately 16.79% below its historical peak recorded in August 2021. Regional property prices exhibited divergent trends, with two regions advancing and two declining. Driven by the sales of remaining primary market inventory and the launch of new projects, New Territories East and Kowloon experienced a rebound in secondary market viewings. Consequently, vendors' room for negotiation narrowed, underpinning the upward momentum in property prices. Conversely, Hong Kong Island and New Territories West lacked major new project launches to draw market focus, resulting in lackluster primary sales and a corresponding slowdown in secondary transactions, which exerted short-term downward pressure on prices.
Turning to the rental market, overall rents continued their upward trajectory, repeatedly hitting new highs. The latest Eva Rental Index (ERI) reached 122.53 points, up 0.3% week-on-week. The index has climbed for two consecutive weeks and maintained a level above 122 points for four straight weeks, surpassing its 2019 peak by approximately 3.37%. Rental performance varied across districts. New Territories West and Kowloon frequently recorded high-priced lease agreements signed by incoming professionals, families, and corporate clients, directly driving up overall rental levels. Frontline agents added that estates in the area, such as Sorrento, have recently seen multiple high-premium leases by corporate tenants, reflecting stable rental demand and propelling rent increases. Meanwhile, Hong Kong Island and New Territories East underperformed slightly, dragged down by several low-priced leasing transactions.
Looking ahead, mainland talent and local housing demand will continue to underpin the leasing market, with full-year rents projected to rise by 3% to 8%. However, interest rate trends and capital constraints are weighing on the overall property market, prompting most buyers to adopt a cautious stance. Consequently, short-term property prices are expected to remain stable with a slight downward bias, with the index fluctuating between 112 and 124 points.
Regional Property Price Trends Diverge; New Territories East Rises by Nearly 1.2%
Regional property price trends diverged this week, recording two gains and two declines. Indices for New Territories East and Kowloon rose to 120.24 and 116.92 points, representing week-on-week increases of 1.16% and 0.35% respectively. The former ended a two-week downward streak, while the latter rose for the third consecutive week. Conversely, Hong Kong Island and New Territories West faced downward pressure, with their indices reporting 108.59 and 124.49 points, down slightly by 0.01% and 0.53% week-on-week, respectively. The upward momentum on Hong Kong Island came to a halt, whereas New Territories West recorded declines for two consecutive weeks.
Property prices in New Territories East performed well, primarily benefiting from the robust sales of remaining primary market stock in the district, which stimulated secondary market viewing activities. This week, primary market transactions in the district were dominated by La Mirabelle series, recording 19 deals. Prospective buyers adopted an active approach, boosting secondary market sentiment. According to data from Midland Realty and Hong Kong Property Services, weekend viewing appointments at several major benchmark estates in New Territories East recorded approximately 176 and 139 groups, representing slight week-on-week increases of 0.72% and 0.57% respectively. This reflects a stable purchasing appetite among buyers, providing support for property prices in the district.
Kowloon property prices also trended upwards, mirroring the situation in New Territories East. The continuous launch of new projects in the district successfully absorbed market purchasing power. Primary market transactions this week included 15 deals at KT Marina 2, 5 deals at One Victoria Cove Phase 4, and 4 deals at Connext. Although the overall pace of primary transactions slowed slightly, the steady sales performance of these new projects prompted secondary market owners to narrow their room for negotiation, driving secondary property prices up. Weekend viewing appointments also saw an uptick, with Hong Kong Property Services and Midland Realty recording 200 and 194 groups, up 3.63% and 2.11% week-on-week, respectively, indicating a solid base of secondary market prospective buyers. Furthermore, Chester II and The Sterling II recently adopted a strategy of releasing new batches at original prices, resulting in a slight increase in the average discounted price per square foot. This reflects developers' strategy of promoting sales at market prices while remaining optimistic about the district's absorption capacity, further pushing up Kowloon's property prices.
Love Property Agency Limited’s Managing Director May Chu noted that unlike the broader market, buyers in Kowloon have become more proactive, with the local wait-and-see sentiment receding. Taking a low-floor Unit B at The Masterpiece with a saleable area of 817 square feet as an example, the unit changed hands this week for HK$16.86 million, a transaction price lower than HSBC's valuation of HK$17.77 million. Given the attractive price, the buyer brought a cheque and signed the contract directly without viewing the property. The buyer had originally planned to rent a similar unit for HK$49,000 per month but ultimately decided to switch from renting to purchasing. This demonstrates that even the recent 0.25% interest rate hike by the US Federal Reserve has not deterred buyers in the district from entering the market.
On Hong Kong Island, property prices softened slightly due to mediocre primary market sales and a lack of new market focus. State Residence recently offered 20 units via tender and sold 13; together with the sale of one remaining unit, a total of 14 transactions were recorded, accounting for 70% of the units launched. The project subsequently released 90 units in consecutive batches, with the increase in the average discounted price per square foot ranging only from 0.32% to 2.99%. This restrained pricing strategy has effectively capped the upside potential of secondary property prices in the district.
In New Territories West, sales of remaining stock across multiple new projects were relatively weak, with primary transactions concentrated at Garden Regency and The YOHO Hub II, which recorded 9 and 6 deals, respectively. Due to the lack of new large-scale developments in the district, viewing volumes showed no signs of improvement, leading to a slowdown in the pace of secondary transactions and putting short-term pressure on property prices.
Looking ahead, 28Hse Limited Data Researcher Alex Cheung maintained his previous forecast, expecting the short-term EPI to fluctuate between 112 and 124 points. As negative factors such as the impact of interest rate hikes and restrictions on mainland capital outflows gradually surface, the overall property market trend in the second half of the year is expected to remain stable or edge slightly downwards.
Rental Index Rises 0.3% for Two Consecutive Weeks; New Territories West Up Nearly 1%
Overall rents continue to rise. The ERI stands at 122.53 points, up 0.3% week-on-week. The index has risen for two consecutive weeks and maintained above 122 points for four consecutive weeks, hitting another record high. Currently, the index is approximately 3.37% higher than the 2019 peak of 118.54 points.
Regional rents exhibited mixed performance, recording two gains and two declines. New Territories West rose for the second consecutive week, while Kowloon halted its recent decline, with their indices reporting 140.56 and 126.16 points, representing week-on-week increases of 0.97% and 0.89%, respectively. Conversely, New Territories East and Hong Kong Island underperformed, reporting 125.05 and 131.9 points, respectively. These figures represent week-on-week drops of 0.84% and 0.51%, marking their third and second consecutive weeks of decline, respectively.
New Territories West continued to record high-priced leasing transactions. A two-bedroom unit, Unit G on a mid-floor of Block 3 in Sun Tuen Mun Centre, with a saleable area of 455 square feet, was leased to a local district tenant for $14,000 per month, translating to a per-square-foot rent of $30.8. Additionally, a two-bedroom unit, Unit D on a mid-floor of Block 7 in The Visionary, with a saleable area of 671 square feet, was leased to an incoming talent for $22,000 per month, or $32.8 per square foot. These two transactions were approximately 10% and 5.81% higher than the 28Hse 90-day average per-square-foot rents of $28 and $31, respectively. Frequent similar high-priced leasing transactions in the district this week directly drove up the overall rental level in New Territories West.
The situation in Kowloon was similar. A three-bedroom unit, Unit C on a low-floor of Block 1A in Monaco One, with a saleable area of 616 square feet, was leased to a family for $39,000, at $63.3 per square foot. A two-bedroom unit, Unit C on a mid-floor of Block 8 in Cullinan West, with a saleable area of 417 square feet, was leased to a couple for $28,500, at $68.3 per square foot. According to 28Hse data, these transactions were approximately 9.14% and 6.72% higher than the respective estates' 90-day average per-square-foot rents. Steady demand has driven Kowloon's rents to bottom out and rebound.
Chu pointed out that corporate clients have recently been leasing units at Sorrento at premium prices. For instance, a four-bedroom unit, Unit E on a mid-floor of Block 1, with a saleable area of 1,236 square feet was leased for $77,000. Another three-bedroom unit, Unit B on a high-floor of Block 2, with a saleable area of 919 square feet was also leased at $62,000, surpassing previous rates. This reflects stable leasing demand in Kowloon, driving rents in the district steadily upward.
Rents in New Territories East were under pressure this week. A two-bedroom unit, Unit A1 on a mid-floor of Block 6 in Le Mont Phase 2, with a saleable area of 344 square feet, was leased to a mainland university student for $12,000, at $34.9 per square foot. Referring to 28Hse data, the estate's 90-day average per-square-foot rent is $45. This transaction was approximately 22.44% below the market rate, dragging down the district's overall rental performance.
Certain estates in the Hong Kong Island district also recorded low-priced leasing transactions, keeping rents in the area under pressure. A one-bedroom unit, Unit A on a high-floor of The Upper Manor, with a saleable area of 320 square feet, was leased to a mainland professional relocating to Hong Kong for $25,500, at $79.7 per square foot. This transaction was approximately 5.12% lower than the 28Hse 90-day average per-square-foot rent, leading to a decline in the Hong Kong Island rental index this week.
Mainland talents continue to relocate to Hong Kong for career development, gradually becoming the main driving force in the leasing market. Coupled with the rigid demand from local tenants, citywide leasing transactions are expected to remain active, supporting rents to hover at high levels. Therefore, Cheung maintains his previous forecast, expecting the ERI to fluctuate between 114 and 126 points in the short term, with full-year rents projected to rise by 3% to 8%.
The above indices reflect market conditions from September 18, 2026, to September 24, 2026.
