The latest property market data has been released, with the focus of both the primary and secondary markets returning to urban areas. The latest Eva Property Index (EPI) stood at 115.37 points, edging down 0.25% week-on-week (WoW) and recording a two-week consecutive decline. The four major regional indices reported two gains and two losses: Kowloon and Hong Kong Island were stimulated by robust sales of new primary projects, leading to more active secondary transactions, with their indices rising by 1.59% and 0.32% WoW, respectively. Conversely, New Territories East and New Territories West trended softer due to a lack of new project focus. Summarizing the first two months of this year, overall property prices accumulated a slight increase of 0.51%, though they remain approximately 20.85% below the historical peak of 145.76 points recorded in August 2021.
The leasing market continued to perform well. The latest Eva Rental Index (ERI) stood at 117.24 points, up 0.45% WoW, sitting merely 1.1% below its historical high. Approaching the traditional peak leasing season, coupled with the gradual realization of the "Study in Hong Kong" policy effects which further drive housing demand, the rent index is expected to challenge its historical high of 118.54 points in the short term.
The softening of property prices this week is believed to be caused by buyers adopting a wait-and-see approach ahead of the launch of brand-new projects. Developers have previously indicated active project launches starting from March to absorb market purchasing power, including the DEEP WATER SOUTH series, CHESTER, VELE, and the Pan Hoi Street project in Quarry Bay. The new Budget did not introduce measures to stimulate the property market. Although the stamp duty for luxury properties over $100 million was raised from 4.25% to 6.5%, the impact on the broader market is limited. Meanwhile, the actual impact of geopolitical tensions in the Middle East on the local property market remains mild. It is expected that the Eva Property Index (EPI) will fluctuate between 112 and 120 points in the short term, with the potential to trend upwards in the medium to long term, challenging the 2021 peak.
Regional Price Indices Record Two Gains and Two Losses; Kowloon Rises Over 1.5%
The latest regional property price indices recorded two increases and two decreases. Notably, the Kowloon district registered a significant gain, ending last week's decline and resuming an upward trajectory. The index for the district stood at 113.55 points, representing a week-on-week increase of 1.59%. This growth was primarily driven by robust first-hand sales. Several new projects in the district, including Chill Residence, the KOKO HILLS series, Uptown East, In One Above, Highwood Phase 1, KT Marina, and Baker Circle Dover, recorded 21, 8, 6, 6, 6, 5, and 5 transactions, respectively. The absorption of a substantial amount of purchasing power by new projects reflects strong market absorption capacity, prompting secondary market owners to narrow their room for negotiation and thereby providing solid support for property prices. According to agency data, weekend viewing appointments (7th to 8th) at seven major blue-chip estates in Kowloon recorded approximately 198 groups, an increase of about 15.1% week-on-week compared to the 172 groups recorded last weekend (February 28th to March 1st). Overall, the strong momentum of first-hand new projects has successfully stimulated sentiment in the secondary market, injecting vitality into the Kowloon property market.
May Chu, Managing Director of Love Property Agency Limited, pointed out that first-hand projects in the Kai Tak area have raised their prices since March 1st. Coupled with the narrowing of negotiation margins in the secondary market, this has driven up property prices in the district. Furthermore, the excellent school networks in Kowloon have attracted families residing in the New Territories to enter the market across districts, further consolidating the price gains in the area. She added that the limited supply of rental listings and the large number of prospective tenants in prestigious school network areas (such as Ho Man Tin and Kowloon Tong) have led to robust demand for both home purchases and rentals in the district.
Looking ahead to the district's future market outlook, the first batch of units at the new project Grand Austin Bohemian was launched at a discounted average price of $21,008 per square foot, approximately 1.9% higher than the initial batch of its affiliated project, Grand Austin Bohemian. The developer has indicated that there will be room for price increases in subsequent batches. Another new project, Zendo House, also adopted a strategy of launching its initial batch close to market prices with a previewed price hike. In addition, following the official naming of CHESTER and Connext, developers have announced their imminent launch, reflecting confidence in the district's market outlook and secondary transaction volume. Ms. Chu supplemented that developers are actively launching projects to seize the opportunity of the recent market recovery to accelerate inventory clearance.
The Hong Island index also rebounded this week, standing at 105.43 points, a week-on-week increase of 0.32%. The gain is largely attributed to the ideal sales performance of new projects. Notably, all launched units at Kennedy Bay, the Blue Coast series, and Central Residence by the Park were sold out, recording 57, 32, and 20 transactions respectively. Sales of first-hand remaining inventory, such as those at the Headland Residences Phase and Kennedy 38, also recorded 11 and 5 transactions respectively. The buoyant first-hand transactions have synchronously driven improvements in the secondary market. According to agency data, weekend viewing appointments (7th to 8th) at four major blue-chip estates on Hong Kong Island recorded approximately 128 groups, a week-on-week increase of about 6.7% compared to last weekend (February 28th to March 1st). Recently, projects including DEEP WATER SOUTH, VELE, and PORTO have successively uploaded their sales brochures and are preparing for short-term launches, demonstrating developers' full confidence in the district's purchasing power.
Regarding New Territories East, property prices ended last week's upward trend, standing at 113.43 points, down 1.18% WoW. Primary inventory transactions in the district were quiet this week, supported only by 5 transactions from the Le Mont series; secondary transactions also slowed down, putting pressure on property prices. The new project Cloudview recently released its first price list with an average discounted price of $13,974 per square foot, up to nearly 3% higher than the first batch of the nearby ONE INNOVALE series, representing a market-price launch. With the upcoming completion of the North District Hospital expansion and the project being the first brand-new development in the Northern Metropolis, it is expected to become the pricing benchmark for new projects in the area. In addition, LOHAS Park's LA MIRABELLE recently uploaded its sales brochure, reflecting the developer's active preparation for a launch to welcome the upward trend in market transactions.
The New Territories West index was also under pressure this week, standing at 120.35 points, down 0.47% WoW, marking a three-week consecutive decline. The sales pace of primary inventory in the district slowed down, mainly driven by the Grand Mayfair series (9 transactions) and the Novo Land series (5 transactions). Observing weakened market purchasing power, secondary owners have widened their negotiation margins, dragging down property prices.
In conclusion, the impact of Middle East instability on the local property market is limited and may even attract safe-haven capital inflows, exerting a positive effect on property prices. It is expected that the property price index will fluctuate between 112 and 120 points in the short term, while possessing the potential to challenge the historical high of 2021 in the medium to long term.
Rent Index Breaches 117 Points, Up 0.45% WoW, Only 1.1% Below Peak
The government's relaxation of restrictions on non-local students coming to Hong Kong to study at universities and Direct Subsidy Scheme (DSS) primary and secondary schools has driven leasing demand. The latest Eva Rental Index (ERI) stood at 117.24 points, ending last week's decline. It has accumulated a 1.04% increase over the first two-plus months of 2026, sitting merely 1.1% below the historical high of 118.54 points recorded in August 2019.
The four major regional rent indices showed three gains and one loss, with New Territories West, Hong Kong Island, and New Territories East all recording increases. New Territories West performed the best, with its index standing at 136.49 points, up 1.91% WoW, ending last week's decline. Hong Kong Island stood at 124.37 points, up 1.73% WoW, marking a three-week consecutive rise. New Territories East stood at 122.66 points, up 1.43% WoW, rising for two consecutive weeks. Kowloon trended softer, standing at 121.2 points, down 0.5% WoW, falling for three consecutive weeks. The data reflects strong overall leasing demand, supporting a steady upward trend in rents.
The 28Hse Research Department anticipates that the Eva Rental index (ERI) will fluctuate between 114 and 120 points in the near term. Driven by the educational needs of their children, Mainland families continue to lease properties in Hong Kong, particularly in Ho Man Tin—a district renowned for its prestigious school network that has recently gained significant traction among family tenants. Furthermore, the government's ongoing promotion of the 'Study in Hong Kong' brand has encouraged Direct Subsidy Scheme (DSS) primary and secondary schools to admit an increasing number of non-local students, further stimulating rental transactions. Coupled with the underlying housing demand from local families, these factors provide robust support for the rental market.
Looking ahead, as the rental demand from international students is gradually released, the rent index is expected to have the opportunity to challenge the historical high of 118.54 points in the next two months. In the long run, the overall rental trend for the entirety of 2026 is expected to remain positive, with an estimated increase ranging between 2% and 4%.
The above indices reflect market conditions from February 27, 2026, to March 05, 2026.
