Hong Kong’s property market continues to show signs of recovery. The latest weekly Eva Property Index (EPI) rose to 111.37 points, up 0.50% from the previous week. This marks the first time the index has surpassed the pre-policy cut level of 110.92 points since the government announced the removal of cooling measures in February 2024. Year-to-date, the index has increased by 4.15%, though it remains approximately 23.59% below the peak of 145.76 points recorded in August 2021.
Analysts attribute the gradual rise in home prices to interest rate cuts by the U.S. Federal Reserve and corresponding reductions in prime mortgage rates by local banks, which have lowered financing costs for buyers and investors, thereby stimulating purchasing power. Additionally, improving Sino-U.S. relations has further enhanced market sentiment and transaction activity.
Meanwhile, the Eva Rental Index (ERI) reversed a two-week decline, climbing 0.37% to 117.01 points and returning above the 117-point threshold. District-level performance followed a “three up, one down” pattern, supported by the Quality Migrant Admission Scheme and sustained demand from tenants left over from the summer leasing surge. The strong appetite for quality housing reflects resilient end-user demand. In the short term, the rental index is expected to fluctuate within a narrow range of 116 to 120 points, with potential to surpass the historical high of 118.54 points.
Home Prices Rise Across All Districts, Kowloon Leads with Strongest Weekly Gain
District-level home price indexes continued their upward momentum this week, supported by a concurrent decline in negative equity cases and unsold inventory—signs of a gradually improving property market. In Q3 2025, the number and value of residential mortgage loans in negative equity both fell by approximately 17% quarter-on-quarter. The number of cases dropped from 37,806 to 31,449, down 16.81%, while the total loan value declined from HK$190.2 billion to HK$156.8 billion, a decrease of 17.56%. As of the end of October, the city’s accumulated unsold inventory stood at 19,628 units, marking the ninth consecutive monthly decline and the lowest level since June 2023, with a further 1.1% reduction month-on-month.
Kowloon recorded the most notable price increase among all districts, with the latest index reaching 109.77 points—up 2.36% week-on-week, marking two consecutive weeks of growth. The upward momentum was primarily driven by the concurrent launch of two new developments in Kai Tak: the Cullinan Sky Phase 2 and Victoria Voyage Phase 1A. Notably, the Cullinan Sky Phase 2 was priced nearly 30% higher than the initial batch of Phase 1, capitalizing on the positive market sentiment. Additionally, New World Development has announced a planned price increase of 3% to 5% this month for unsold units in its projects, including the Pavilia Forest, further reflecting the active market conditions and renewed buyer interest in Kowloon, which continues to support overall price appreciation.
In other districts, the New Territories West index rose 0.46% to 116.23 points, extending its two-week upward streak. New Territories East climbed 0.25% to 112.07 points, marking four consecutive weeks of gains. Hong Kong Island edged up 0.15% to 99.93 points, also rising for the second week in a row.
On Hong Kong Island, all 60 units of SPRING GARDEN were sold out, while CK Asset Holdings Limited announced a planned price increase of 3% to 5% this month during the launch of the Southside Phase 3C Blue Coast II in Wong Chuk Hang. These developments reflect growing market confidence in future prospects, with clear signs of a property market rebound. The improving sentiment has encouraged buyer participation, supporting a steady upward trend in home prices.
Looking ahead, market consensus suggests that overall sentiment will continue to improve, supported by interest rate cuts and warming Sino-U.S. relations. Buyer and corporate appetite for entering the market is expected to strengthen. Following the Eva Property Index’s breakthrough above the pre-policy cut level of 110.92 points, the index is projected to fluctuate between 107 and 114 points in the short term, with prices likely to maintain a stable upward trajectory. Full-year home price growth is estimated at 5% to 6%.
Eva Rental Index Climbs to 117.01 Points, Marking New High for the Year
The latest Eva Rental Index rose to 117.01 points, marking a new high for 2025. The index reversed a two-week decline, climbing 0.37% week-on-week and surpassing the 117-point threshold for the first time this year. It now stands just 1.53 points, or approximately 1.31%, below the historical peak of 118.54 points recorded in early August 2019. Year-to-date, the index has gained 2.93%.
The rebound in rental demand is underpinned by the gradual recovery in economic activity and continued support from the government’s Quality Migrant Admission Scheme, which has sustained strong end-user demand for housing.
At the district level, the rental index maintained the “three up, one down” pattern observed last week. New Territories West led the gains, rising 1.23% to 139.74 points, marking its fourth consecutive weekly increase and reflecting robust leasing demand and strong absorption capacity. New Territories East followed with a 0.90% rise to 119.45 points, while Kowloon also reversed its previous decline, climbing 0.88% to the same level. In contrast, Hong Kong Island softened slightly, ending a four-week upward streak with a 0.69% decline to 124.61 points.
Overall, the rental market remains firm, with sustained demand for residential leasing continuing to support elevated rental levels.
Looking ahead, rental demand is expected to strengthen further, supported by the ongoing influx of talent brought by the Quality Migrant Admission Scheme and residual leasing interest from the summer peak season. Despite the seasonal slowdown, demand for quality properties remains strong, and rental levels are likely to remain elevated, with the potential to reach new record highs. The Eva Rental Index is projected to fluctuate between 116 and 120 points over the next two months, with a chance of surpassing the historical high of 118.54 points.
These figures reflect market conditions from October 31 to November 06, 2025
Like
