The latest Eva Property Index (EPI) reported at 115.83 points, representing a week-on-week (w-o-w) increase of 0.4% and ending a two-week consecutive decline. Recently, the property market has presented a divergent landscape, characterized by active urban areas and a quiet New Territories. Benefiting from the satisfactory sales of multiple first-hand new projects in urban districts, market focus has returned to Hong Kong Island and Kowloon, driving their respective price indices up by 0.68% and 1.21%. Conversely, the New Territories experienced short-term price pressure due to a lack of large-scale new project launches and subdued secondary market transactions. Overall, the pricing strategies and sales performance in the primary market continue to dictate the broader market trend. Concluding the first quarter of this year, overall property prices have recorded a provisional cumulative increase of 0.91%. However, this figure remains approximately 20.53% below the historical peak of 145.76 points recorded in August 2021.
Regarding the rental market, despite currently being in the traditional low season, overall rental performance remains stable. The latest Eva Rental Index (ERI) stood at 117.23 points, a marginal w-o-w decrease of 0.01%, stabilizing at the 117-point level for two consecutive weeks and sitting just about 1% below its historical peak. With the government promoting the "Study in Hong Kong" policy and the traditional peak rental season approaching, non-local students will gradually arrive in Hong Kong to seek accommodation. This substantial housing demand will provide solid support for the rental market. It is expected that the rental index will have the potential to challenge new historical highs in the short term.
The recent strong absorption rate of new urban projects—with the first batches of certain developments like Grand Austin Bohemian selling out on the first day—has successfully stimulated overall market sentiment. The robust sales of new projects have not only boosted secondary transactions in the same districts but also prompted spillover buyers to return to the secondary market to hunt for listings. Looking ahead, developers' active project launches will continue to drive the broader market. As for the adjustment of stamp duty for luxury properties over $100 million in The Budget, alongside geopolitical tensions in the Middle East, the impact on the overall local property market is expected to be limited. In the short term, the Eva Property Index (EPI) is forecast to fluctuate between 112 and 120 points; in the medium to long term, transaction volumes are expected to remain robust, giving property prices the momentum to challenge the 2021 historical peak.
Regional Indices Record Two Gains and Two Drops: Urban Areas Benefit from New Launches While New Territories Pressured by Subdued Trading
The latest regional property price indices recorded two increases and two decreases. Notably, the Kowloon district registered the largest gain, rising for two consecutive weeks to latest report at 114.92 points, up 1.21% w-o-w. The upward price momentum in this district was primarily driven by active primary market transactions.
The primary market within the district has demonstrated robust absorption capacity, with multiple new projects achieving highly satisfactory sales performances. Consequently, developers have launched additional units at premium prices, which has in turn driven up secondary transaction prices in the area. Notably, all 64 units of Grand Austin Bohemian were sold out on the first day, making it the first fully sold-out new project in Hong Kong this year. Other projects also recorded continuous transactions, such as Highwood Phase 1 (24 units), Chill Residence (12 units), and KT Marina (10 units). Meanwhile, Phase 1 of Beacon Peak, Uptown East, The Henley series, Pavilia Forest series, Victoria Voyage series, and Grand Homm each recorded 5 to 7 transactions. Furthermore, developers exhibited confidence in their pricing strategies; Zendo House released additional units on the 8th and 10th, with average discounted prices per square foot at $22,416 and $23,650 respectively, representing a price hike of approximately 5.5% to 6.55% compared to the previous price list. This reflects developers' strong confidence in the district's purchasing power.
The booming primary market has become the focal point, successfully generating a synergistic effect that has lifted sentiment in the district's secondary market. Observing this trend, secondary homeowners in the area have narrowed their negotiation room, with some even raising their asking prices, further supporting the upward trajectory of property prices. According to data from Hong Kong Property Services Limited, viewing appointments at four major indicator housing estates in Kowloon over the weekend (March 7-8) recorded approximately 197 groups, an increase of about 1.5% from the 194 groups recorded the previous weekend (Feb 28 - Mar 1). Overall, the hot sales in the primary market have successfully driven up both secondary prices and transaction sentiment in Kowloon.
The new Austin project, Grand Austin Bohemian, recently sold out completely, marking the first primary development in Hong Kong to clear its inventory this year. Fleming Lee, Associate Sales Director of Centaline Property Agency Limited, posits that this serves as a crucial benchmark for the broader Hong Kong property market. He further noted that despite its relatively small scale, the Grand Austin Bohemian project was particularly attractive to bulk purchasers; on the day of launch, seven groups of investors acquired entire floors. This robust sales momentum has not only propelled secondary property prices upward in the Kowloon district but has also redirected numerous spillover buyers back to the secondary market. Some have even made cross-district inquiries regarding asking prices for units in Tsuen Wan, indicating that underlying market purchasing power remains abundant.
Looking ahead at the Kowloon market, Foto+ uploaded its sales brochure this week, while Zendo House received 3,600 ticket registrations by the 12th, representing an over-subscription of 21 times. It is expected that developers will actively launch and sell projects to capitalize on the trend of rising prices and volumes.
The Hong Kong Island price index also recorded a two-week consecutive rise, reporting at 106.14 points this week, up 0.68% w-o-w. The price increase in the district was mainly driven by the satisfactory sales of remaining primary market inventory. Specifically, the Headland Residences, the Blue Coast series, and Kennedy Bay sold 18, 6, and 6 units respectively. The brisk primary transactions successfully stimulated secondary market sentiment. Data from Hong Kong Property Services showed that viewing appointments at four major indicator estates on Hong Kong Island over the weekend (March 7-8) recorded about 23 groups, a 15% increase from the 20 groups the previous weekend.
Commenting on the Hong Kong Island market, Lee noted that a two-bedroom unit in the Blue Coast development was acquired immediately upon handover, reflecting robust absorption capacity within the district. This strong demand has prompted secondary homeowners in the vicinity to adopt a firmer stance on their asking prices. Furthermore, the stellar sales performance of the new project, Hai Yu, has served as a key bellwether for the broader market, providing further upward momentum for secondary home prices across Hong Kong Island.
On the other hand, the New Territories East price index fell for two consecutive weeks, latest reporting at 112.59 points, down 0.74% w-o-w. Primary transactions in the district were quiet this week, mainly supported by Park Seasons and Le Mont series, recording 6 and 4 transactions respectively. Concurrently, secondary transactions also slowed down, putting pressure on overall prices.
Regarding new project pricing, Cloudview recently released additional units with an average discounted price of $15,997 per square foot. While ostensibly 14.48% higher than the first price list, a comparison of similar units reveals an actual slight decrease of 0.5%, categorizing it as an at-cost addition. This indicates that developers are using steady pricing to test market absorption.
Looking ahead, LA MIRABELLE I in LOHAS Park recently commenced the sale of three-to-four-bedroom units via tender, showing that developers remain optimistic about future market developments.
The New Territories West price index fell for four consecutive weeks, latest reporting at 120.14 points, a slight w-o-w drop of 0.17%. Transactions for remaining primary stock in the district were quiet, mainly supported by the sale of 14 units from the Novo Land series. As market absorption weakened, secondary owners proactively widened their negotiation margins, leading to a continued downward trend in the district's overall property prices.
In summary, the recent property market exhibits a "strong urban, quiet New Territories" pattern. Kowloon and Hong Kong Island benefited from the ideal sales of multiple new projects, creating a synergistic effect that drove up secondary transactions and prices. Conversely, the New Territories lacked primary market focus, leading to weakened absorption and forcing secondary owners to widen negotiation room, keeping prices under short-term pressure.
Looking forward, developers' launch pace and pricing strategies will continue to dictate the broader market trend, and the sales performance of new primary projects will serve as a key indicator for overall market development. It is expected that the Eva Property Index (EPI) will fluctuate between 112 and 120 points in the short term, with the potential to challenge the 2021 historical peak in the medium to long term.
Rental Index Stabilizes at 117 Points for the Second Week, Just 1% Below Historical Peak; Expected to Resume Upward Trend in Peak Season
Currently in the traditional rental low season, leasing transaction performance has been fluctuating. This week, the Eva Rental Index (ERI) reported at 117.24 points, a marginal w-o-w decrease of 0.01%, ending last week's upward trend but remaining stable at the 117-point level for two consecutive weeks. Summarizing the first quarter of 2026 to date, the Eva Rental Index (ERI) has accumulated a 1.03% increase, sitting just 1.11% away from the historical high of 118.54 points set in August 2019.
The four major regional rental indices showed three gains and one drop. Indices for Kowloon, Hong Kong Island, and New Territories East all recorded increases, with only New Territories West experiencing a slight pullback. Among them, Kowloon performed the best, reporting at 122.22 points, up 0.84% w-o-w, ending a three-week declining streak. Hong Kong Island reported at 124.97 points, up 0.48% w-o-w, rising for three consecutive weeks. New Territories East reported at 122.74 points, edging up 0.07% w-o-w, also marking a three-week rising streak. Conversely, the New Territories West index faced pressure, reporting at 136.34 points, down 0.1% w-o-w, halting last week's gains.
The above regional data reflects that during the traditional rental low season, rental demand for properties on Hong Kong Island and in Kowloon remains relatively solid with stronger resilience, allowing them to easily rebound first. Meanwhile, areas like New Territories West, temporarily lacking an influx of external tenants or peak season effects, are more prone to short-term volatility and pressure in rental trends.
Regarding the slight drop in New Territories West rents, Lee pointed out that since it is not currently the peak rental season and the market lacks focal points, the rental trend in the district has been somewhat volatile.
The 28Hse Research Department expects the Eva Rental Index (ERI) to fluctuate between 114 and 120 points in the short term. However, substantial rental demand in the market remains abundant. With the authorities promoting the "Study in Hong Kong" policy, universities and Direct Subsidy Scheme (DSS) schools will admit more non-local students. Coupled with the housing needs of local families, this will provide solid support for the rental market.
Looking ahead, as international students gradually secure accommodation for the new academic year, it is expected that demand during the rental peak season over the next two months will be progressively released, driving the Eva Rental Index (ERI) to potentially challenge the historical high of 118.54 points. In the long run, the rental trend for the entirety of 2026 is expected to remain positive, with an estimated full-year increase ranging between 2% and 4%.
The above indices reflect market conditions from March 06, 2026, to March 12, 2026.
