Entering the first week of June, the Hong Kong property market sustained its upward momentum. The Eva Property Index (EPI) rose for the fourth consecutive week to 120.43 points, representing a week-on-week increase of 0.99%. Year-to-date, property prices have accumulated a growth of 6.14%; however, compared to the historical peak of 145.76 points recorded in August 2021, the index remains 17.38% lower.
First-hand sales continued to dominate the broader market, with second-hand property prices across all four major districts recording across-the-board increases this week. Driven by the robust sales of new projects and remaining inventory, a large number of prospective buyers who missed out on new launches have returned to the secondary market. Hong Kong Island and New Territories West recorded significant gains, with transaction prices in New Territories West being further pushed up by a shortage of secondary listings. New Territories East and Kowloon also benefited from an increase in property viewing volumes; owners' confidence strengthened, leading them to narrow their room for negotiation or raise asking prices, which provided solid support for property values. Overall, the spillover effect from the primary to the secondary market is evident, driving both transaction volumes and prices upward synchronously across all districts.
Regarding the rental market, the Eva Rental Index (ERI) rebounded this week after softening last week, latest reported at 119.53 points. This represents a week-on-week increase of 0.55%, reclaiming the level above 119 points and standing 0.84% higher than the previous peak of 118.54 points recorded in August 2019. With the upcoming summer leasing peak season, housing demand from incoming professionals and mainland students is increasing. This is expected to further stimulate overall rental transactions, with per-square-foot rents in some housing estates poised to hit new highs, likely driving the rental index steadily upwards.
Property Prices Rise Across All Districts; Hong Kong Island and New Territories West Up by Approximately 1.5%
The property price indices for all four major districts recorded gains this week, primarily driven by the ideal sales performance of first-hand new projects and remaining stock. Hong Kong Island rose for the second consecutive week to 111.28 points, up 1.51% week-on-week. New Territories West halted its decline and rebounded to 123.45 points, up 1.48% week-on-week. New Territories East rose for the second consecutive week to 118.66 points, up 0.8% week-on-week. Kowloon ended a two-week losing streak, posting a slight week-on-week increase of 0.1% to 118.1 points. Analysts pointed out that the strong sales of new projects have warmed up the overall market sentiment, benefiting the secondary market as well, with both transaction volumes and prices moving upwards.
On Hong Kong Island, transactions for remaining new project units were brisk, with Jardini and the DEEP WATER SOUTH series each recording 8 transactions. The strong first-hand sales bolstered the confidence of secondary market owners, some of whom raised their asking prices, supporting the upward trend in property values. In addition, the Headland Residences added its 4th price list this week, offering 120 units at an average discounted price of $17,276 per square foot. This represents a slight drop of 1.39% compared to the 3rd price list released last September, mainly due to differences in views. The overall pricing remains close to market rates, reflecting a prudent yet market-absorbable launch strategy by the developer. Property viewing activities in the district also increased; according to Midland Realty data, weekend viewing appointments at the four major indicator estates on Hong Kong Island reached 143 groups, up 2.88% week-on-week, indicating strong buyer intention to enter the market.
In New Territories West, market focus centered on the new project Lime Spark. The project sold 59 units this week, including 52 price-list units and 7 via tender. All four rounds of price-list units sold out on their respective launch days, with cumulative sales reaching 426 units and cashing in over $2.9 billion. Fleming Lee, Associate Sales Director of Centaline Property Agency Limited, noted that secondary listings in the district were already scarce. The sell-out of first-hand units drove a large number of buyers to the secondary market, where the shortage of listings further pushed up property prices. For instance, a two-bedroom unit (High-floor Unit G, Tower 2) at The Aurora, with a saleable area of 442 square feet, changed hands this week for $9.43 million, or $21,335 per square foot, hitting a recent monthly high. Additionally, Grand Mayfair III recorded 5 transactions of remaining stock; weekend viewing appointments at the two major indicator estates in the district rose by 1.94% week-on-week to 105 groups, reflecting positive market sentiment.
The New Territories East property market was similarly dominated by first-hand sales. La Mirabelle I sold 15 units this week, and Cloudview also recorded 8 transactions, prompting secondary owners to narrow their negotiation margins. La Mirabelle I released its 5th price list this week, with an average discounted price of $18,309 per square foot, about 4.69% higher than the previous list. However, when comparing the per-square-foot prices of units in the same column, the actual increase is only about 1.2% to 2.71%, essentially representing a launch at original prices, which demonstrates the developer's confidence in the market's absorption capacity. Viewing volumes in the district continued to rise; data from Midland Realty and Hong Kong Property Services indicated that weekend viewing appointments at indicator estates rose by 1.64% and 7.27% week-on-week, respectively, showing that buyers are actively scouting for properties.
In Kowloon, Pavilia Rosa recorded 40 transactions, while the MIAMI QUAY series, Pano Harbour, One Victoria Cove Phase 3, and Highwood series each recorded 7 to 10 first-hand transactions. The strong sales of new projects stimulated the secondary market in the district, with weekend viewing appointments at the seven major indicator estates increasing to approximately 199 groups, up about 3.65% week-on-week. The increased foot traffic for viewings provided support for secondary property prices.
28Hse Limited Data Researcher Alex Cheung predicted that the EPI will fluctuate between 112 and 124 points in the short term. The future trajectory of the broader market will depend on developers' launch paces and pricing strategies, the US Federal Reserve's interest rate movements, and the psychological factor of buyers accelerating their market entry due to fears of continuous price hikes.
Rental Index Rises 0.55%, Standing 0.84% Above the 2019 Peak
After softening last week, the ERI rebounded this week, latest reported at 119.53 points, up 0.55% week-on-week, successfully reclaiming the 119-point level. The index has accumulated an increase of approximately 2.21% so far this year and is about 0.84% higher than the peak of 118.54 points recorded in August 2019.
Rental trends varied across districts. New Territories West reported 137.75 points, up 1.28% week-on-week; New Territories East reported 123.5 points, up 1.09% week-on-week; Kowloon reported 125.18 points, remaining unchanged week-on-week; and Hong Kong Island reported 127.7 points, down slightly by 0.16% week-on-week.
Regarding New Territories West, Lee pointed out that the period after primary school final exams from late May to early June has traditionally been a peak relocation season for local families. Parents often take advantage of the lighter academic workload before the summer holidays to handle moving, which drives rental transactions in the district. Taking a two-bedroom unit (High-floor Unit B, Tower 3) at Ocean Pride as an example: with a saleable area of 527 square feet, it was rented out for $25,000 after being on the market for just two days, translating to a per-square-foot rent of about $47.4. Compared to the rent of approximately $20,000 for a similar unit in late March 2023, the increase is significant, reflecting strong housing demand in the district and driving rents steadily higher.
The rental increase in New Territories East was similarly driven by active transactions. A three-bedroom unit (Mid-floor Unit C, Tower 3) at Carado Garden in Tai Wai, with a saleable area of 593 square feet, was co-rented by three female mainland university students for $25,000 per month, with a full year's rent paid in advance. The unit's per-square-foot rent is approximately $42.2, higher than the 28Hse 90-day average of $30, indicating that rents in the district are supported by substantial housing demand.
Rents in Kowloon remained unchanged week-on-week, with most leasing transactions in the district hovering close to market rates. For example, a one-bedroom unit (High-floor Unit D) at Park Summit, with a saleable area of 321 square feet, was leased by a single tenant from outside the district for $16,500. The per-square-foot rent of $51 is close to the 28Hse 90-day average. Transactions that meet market expectations constituted the majority, resulting in no significant fluctuations in the overall rental level in Kowloon this week.
Rents on Hong Kong Island softened slightly, primarily due to some housing estates recording leasing transactions below market rates. For instance, a two-bedroom unit in Taikoo Shing with a saleable area of 598 square feet was rented out this week for $24,500 per month. The saleable per-square-foot rent of approximately $41 is lower than the 28Hse platform's 90-day average of $45. Such transactions dragged down the overall rental trend in the district.
Looking ahead, Cheung expects the ERI to fluctuate between 114 and 124 points in the short term. With the summer leasing peak season approaching, the housing demand from incoming professionals and mainland students will surge significantly. This is expected to push up the overall transaction volume, with per-square-foot rents in some housing estates poised to hit new highs.
Given that the current index has surpassed the 2019 peak, supported by strong rigid demand, overall rents are expected to rise steadily this year. The full-year growth is estimated to reach 2% to 4%. The upward trend is expected to continue, and the growth rate is likely to outperform that of property prices.
The above indices reflect market conditions from May 29, 2026, to June 04, 2026.
