Developers Continue Launching New Projects; Second-Hand Market Remains Stagnant; Eva Property Price Index Stays Around 106 Points

The latest Eva Property Price Index stands at 106.87 points, reflecting the market situation from May 30 to June 5, 2025. It dropped slightly by 0.02% from the previous week, reversing the prior week’s uptick, and has now hovered around the 106-point level for seven consecutive weeks, indicating a lack of clear price direction and a wait-and-see sentiment in the market.

Since the start of this year, property prices have accumulated a nearly 1% decline, with the index still at its lowest point in over eight and a half years, suggesting weak confidence in the second-hand housing market. Activity remains subdued, with agency data showing only 51 transactions across Hong Kong’s top 10 housing estates, a minor 2% weekly increase, but still at low levels. The outlook for June suggests transaction volumes will continue hovering around the 50-deal mark.

Primary Market Active as First-Hand Units Attract Buyers

The first-hand market, in contrast, is more active, with around 2,300 transactions recorded in May, representing a doubling compared to April, absorbing much of the purchasing power. Following the temporary suspension of new releases at "Sierra Sea" in Sai Sha, two other projects stepped into the spotlight: "UNI Residence" in Shatin and the discounted clearance sale of leftover units at Kai Tak’s "The Henley," launching 110 and 81 units respectively.

Due to this shift in demand to the primary market—alongside uncertainty from the tariff war—the short-term price trend is expected to remain volatile and bottom-seeking, continuing to pressure the second-hand market. The Eva Index may test 105 points in the second half of the year.

Eva Price Index Shows Mixed Performance Across Regions; Hong Kong Island Drops Further

The regional price index showed a "two up, two down" pattern, indicating divergence across districts:

New Territories East: Rose for a third consecutive week to 110.40 points (+0.24%), benefiting from falling interest rates and the HK$100 stamp duty policy on properties under HK$4 million, which boosted small-unit activity.
Kowloon: Rebounded by 0.68% to 104.07 points, after a drop last week. However, the market remains stuck in a tight range.
Hong Kong Island: Fell for the second week to 96.42 points (-2.67%), due to a lack of new large-scale launches and weak market sentiment. Buyers are generally cautious.
New Territories West: Dropped by 0.67% to 109.59 points, retreating from previous gains and reflecting a slowdown in momentum.
In general, property prices are diverging across regions, and the overall market remains in a short-term bottoming phase.

Eva Rental Index Ends Three-Week Climb, Down 0.16% to 115.16 Points

As Hong Kong dollar interest rates continue to decline, expectations are rising for a return of the “cheaper to buy than rent” scenario, prompting some tenants to enter the sales market and slightly easing rental demand. The latest Eva Rental Index stands at 115.16 points, a 0.16% drop from last week, breaking a three-week upward trend and reflecting a temporary slowdown in rental prices.

Regional rental index performance was mixed (three down, one up):

Hong Kong Island: Fell the most, down 1.08% to 118.55 points, marking a second straight weekly decline.
New Territories East and West: Also fell to 116.28 points (-0.84%) and 133.75 points (-0.51%), respectively. This is mainly due to the popularity of lower-priced properties in the New Territories, which are now more attractive for purchase thanks to the HK$100 stamp duty, thus dampening rental demand slightly.
Kowloon: Continued to rise, now at 116.86 points (+0.84%), marking a fourth consecutive weekly gain, driven by persistent strong rental demand.

Overall, the rental market is being reshaped by redistributed purchasing power, with divergent trends across regions. In the short term, rents are likely to remain influenced by interest rate movements and government policies.

This week's index reflects market conditions from May 30 to June 05, 2025.