In early October, both property prices and rentals trended upwards. The Eva Property Index (EPI) stood at 120.95 points this week, edging up by 0.08% week-on-week to end the previous week's decline, though it remains approximately 17.02% below the historical peak recorded in August 2021. Regional property prices demonstrated a mixed performance, with two regions advancing and two declining. Driven by robust primary market sales and the return of unsuccessful prospective buyers from The Sterling II to the secondary market in areas such as Tsuen Wan, transaction volumes in the New Territories West (NTW) were well-supported, thereby boosting property prices in both Kowloon and NTW. Conversely, property prices in the New Territories East and Hong Kong Island faced short-term downward pressure due to sluggish primary market sales. Frontline agents reported that "the diversion of unsuccessful primary market buyers to the New Territories West stimulated both prices and transaction volumes in the secondary market. " Regarding the rental market, although the depletion of premium listings exerted temporary pressure on rents, underlying demand remains robust, benefiting from the continuous influx of professionals.
Meanwhile, the Eva Rental Index (ERI) reported at 122.35 points, posting a slight WoW increase of 0.12%. This similarly ended the previous week's decline, stabilizing at the 122-point level for six consecutive weeks and sitting just 0.15% below the historical high of 122.53 points recorded in late September this year. Regional rental indices also saw two advances and two declines, with the fluctuations in each district primarily driven by the proportion of high-priced rental transactions. Notably, NT East recorded the highest growth among the regions, rising by 0.96% WoW. Looking ahead, current rental demand remains elevated. With no apparent bearish factors in the market, the room for rental correction is expected to be limited, and rents are projected to maintain a steady upward trajectory in the short term.
Regional Property Prices Record Mixed Performance; The Sterling II Drives Kowloon Up by Approximately 2.5%
This week, regional property price indices exhibited a mixed performance, with two regions recording gains and two experiencing declines. Specifically, Kowloon and New Territories (NT) West saw upward trends, with their indices reporting at 121.35 and 126.69 points, representing week-on-week (WoW) increases of 2.46% and 1.47%, marking a five-week and two-week consecutive rise, respectively. Conversely, NT East and Hong Kong Island trended softer, with indices at 118.35 and 107.33 points, down 0.72% and 2.08% WoW. The former has fallen for two consecutive weeks, while the latter ended its upward streak from the previous week.
Property prices in Kowloon continued to climb, primarily driven by robust sales in the primary market. In its second round of sales, The Sterling II sold 154 units, accounting for over 80% of the units offered. Other projects, including KT Marina Phase 2, DOUBLE COAST III, Victoria Voyage series, Chill Residence, and One Victoria Cove series, also recorded between 7 and 11 transactions. According to data from Midland Realty, weekend viewing appointments at seven major indicator estates in Kowloon recorded 192 groups, a WoW increase of approximately 1.59%, which reflects a slight recovery in home-buying sentiment. With ample market absorption capacity, secondary market owners in the district have generally narrowed their room for negotiation and raised asking prices, thereby pushing up overall property prices.
Developers have accelerated the pace of new project launches. THE ATLAS I and One Victoria Cove Phase 2 rolled out additional units and released their first price lists in early October, with average discounted per-square-foot (psf) prices of $14,468 and $21,426, respectively. The former was priced approximately 3.43% higher than its initial batch, while the latter's pricing ranged from a slight dip of 0.94% to a premium of 19.11% compared to the average level of new projects in the same district. These pricing strategies reflect developers' optimism regarding future purchasing power. Additionally, the 451-unit ONE MARINA in Hung Hom is slated for a near-term launch, keeping the property market sentiment in the district active.
Property prices in NT West also performed well. The primary market was dominated by Garden Regency, which recorded 7 transactions. Victor Chung, Senior Area Sales Manager at Midland Realty, noted that “Some prospective buyers who failed to purchase units at The Sterling II have returned to the secondary market, with many shifting their focus to the Tsuen Wan district, thereby driving up both secondary transaction volumes and property prices.” According to Midland Realty, weekend viewing appointments at two major indicator estates in New Territories West recorded 97 groups, representing a week-on-week increase of 2.11%.
Primary market transactions in NT East were relatively subdued, supported mainly by 14 and 4 transactions at La Mirabelle series and Centra Horizon II, respectively. Due to the slowdown in primary sales and the firm asking prices held by secondary owners, a tug-of-war between buyers and sellers has ensued, putting pressure on both transaction volumes and property prices. On the other hand, Sierra Sea Phase 2C (2) released its first price list on October 6, with an average discounted psf price of $13,588, representing a premium of over 20% to 30% compared to previously launched phases of the same series. This continuous upward pricing reflects the developer's aggressive stance and is expected to drive secondary property prices in the district to follow suit.
The sales performance of unsold new units on Hong Kong Island remained weak, with primary transactions concentrated on 4 deals within The Headland Residences series. The district lacks new large-scale focal projects, and viewing volumes have shown no signs of improvement. Suspected issues with the quality of steel reinforcement at ONE STANLEY have drawn market attention. Secondary market transactions on Hong Kong Island have slowed, and property prices in the district are expected to remain under pressure in the short term.
28Hse Limited Data Researcher Alex Cheung maintained his previous forecast, expecting the short-term EPI to fluctuate between 112 and 124 points. While the US Federal Reserve's interest rate trajectory and capital flow constraints continue to weigh on market sentiment, local banks have begun offering mortgage cash rebates. This development helps facilitate transactions and provides temporary support to the market. Looking ahead, the overall property market is expected to remain broadly stable amid mild fluctuations in the fourth quarter.
Rental Index Rebounds by 0.12%, Continuing to Hover at Historic Highs
Hong Kong's rental market trend has stabilized. This week, the ERI stood at 122.35 points, edging up by 0.12% week-on-week and ending the previous week's decline. The index has maintained the 122-point level for six consecutive weeks, with overall rents continuing to hover at historic highs. Currently, the index is approximately 3.21% higher than the secondary peak recorded in 2019, and only marginally lower by 0.15% compared to the historic high of 122.53 points recorded in late September this year. Market analysts generally expect that, supported by persistent and solid rental demand, rents will maintain a steady upward trajectory or continue to hover at high levels for the remainder of the year.
Sub-district rental indices recorded two gains and two declines. The New Territories East index reported 125.85 points, rebounding by 0.96% week-on-week and leading the growth. The district repeatedly recorded above-market transactions. Units in St Martin and City One Shatin were leased at a per-square-foot rent of $47.7 and $47.5 respectively, which are approximately 1.49% and 1.06% higher than the 28Hse 90-day average per-square-foot rent. These transactions have driven up the overall rent in the district.
The Hong Kong Island index also rebounded, rising by 0.48% week-on-week to 131.71 points. Benefiting from leasing activities by expatriates and incoming professionals, Upton and Kornhill recorded transactions with per-square-foot rents of $65.2 and $45.5 respectively, representing premiums of approximately 5.16% and 3.41% over the 28Hse average per-square-foot rent. The influx of high-quality tenant groups, coupled with stable solid demand, has become the primary driving force pushing up overall rents in the district.
Conversely, New Territories West rents faced downward pressure, with the index reporting 139.72 points, a week-on-week drop of 0.36%, marking a two-week consecutive decline. Taking Kingswood Villas as an example, a three-bedroom unit was leased to a corporate client at $24.3 per square foot, which is about 6.54% lower than the 28Hse platform's average. Chung pointed out that "premium rental listings in the district had been absorbed earlier, and the remaining available stock is of slightly inferior quality, thus slowing down the transaction pace. Furthermore, landlords have widened their room for negotiation, putting pressure on rents." He added that since the beginning of October, the number of professional tenants in the Tsuen Wan district alone has surged by 13% to 14%. This indicates that actual rental demand remains elevated, and the recent dip in rents is primarily attributable to the shortage and lower quality of available listings.
The rental trend in the Kowloon district was similarly soft. The index reported 126.19 points this week, down 0.68% week-on-week, ending a two-week rising streak. Leasing performance in the district was slightly sluggish, with individual estates recording below-market transactions. Among them, a two-bedroom unit in The Pacifica was leased at $46.1 per square foot, approximately 3.96% below the platform's average market rate during the period.
Currently, the Hong Kong rental market boasts an abundant source of prospective tenants and stable demand. Cheung maintains his previous forecast that the ERI will fluctuate between 114 and 126 points in the short term. Driven by the influx of professionals and local solid demand, full-year rents are expected to rise by 3% to 8%, with overall transaction volumes remaining stable.
The above indices reflect market conditions from October 2, 2026, to October 8, 2026.
