Buying Power Tilting Toward Primary Market; Eva Property Index Falls for Second Week, Remains Stuck Around 106 Points

The trend in Hong Kong's secondary housing market remains volatile. The latest Eva Property Index stands at 106.52 points, down 0.33% week-on-week, marking its second consecutive weekly decline. Since April, the index has hovered narrowly around the 106-point level for eight straight weeks, indicating a market in a stalemate and wait-and-see mode. So far this year, property prices have declined 1.16%, reflecting continued weakness in the overall trend.

Key factors dragging down property prices include:

Uncertainty in China-U.S. relations.
Heightened market uncertainty.
Developers launching units at low prices to speed up capital recovery.

Recent examples include unsold units in Kai Tak's "The Henley", Tuen Mun's "Wai Wah Shan", and LOHAS Park's "Park Seasons", which together drove nearly 110 primary market transactions over the weekend, placing clear pressure on the secondary market.

At the same time, Hong Kong’s economic fundamentals have not fully recovered. Despite entering a low-interest-rate environment, potential buyers remain cautious, limiting room for a price rebound. In the absence of positive catalysts, the secondary market is expected to continue searching for a bottom, with the CCL possibly testing 105 points in Q2.

Island District Price Index Drops 2.5% Due to Discounted Sales at Wong Chuk Hang’s "La Montagne"

Among regional indices, Hong Kong Island performed the worst, falling for three consecutive weeks. The latest index reads 94.01 points, down 2.5% week-on-week—the largest single-week drop-in recent times.

This slump is largely due to buyers shifting to the primary market, especially drawn to the low-price strategy of new project "La Montagne" atop Wong Chuk Hang Station. In its first round, 101 units were offered with the lowest prices among all phases. The discounted average price per square foot was HKD 20,932, a 32.2% drop compared to the peak phase "South Land", pushing many potential Island buyers to abandon the secondary market.

Kowloon and New Territories Markets Steady or Rebounding

In contrast to Island district’s underperformance:

Kowloon saw its index rise for the fourth consecutive week, now at 104.28 points, up 0.2%.
New Territories West ended its prior decline with a 0.35% uptick to 109.97 points, hovering around the 110-point mark.
New Territories East climbed for the fifth straight week to 110.62 points, also up 0.2%.

Both NT East and NT West benefit from:

Ample supply of small flats under HKD 4 million.
Government policy offering a fixed stamp duty of HKD 100 for homes under HKD 4 million, attracting many first-time buyers and those with rigid demand, contributing to steady price increases in these regions.
 
Rental Market Heats Up for Summer; Eva Rental Index Remains Elevated at 115.20 Points

Entering the traditional summer rental peak season in June, the Hong Kong rental market is clearly warming up, with more active transactions. Many mainland students are arriving early to secure rental flats.

The latest Eva Rental Index stands at 115.20 points, maintaining high levels and signaling the end of the off-season. Rental activity has picked up significantly, indicating a relatively active phase.

By district:

Hong Kong Island recorded the largest increase, with the index at 120.55 points, up 1.69 points week-on-week.
New Territories East had the biggest decline, down 1.26% to 114.81 points, marking two straight weeks of decline and signaling softer demand.
Kowloon fell 1.02% to 115.67 points, ending its previous three-week uptrend.
New Territories West declined marginally by 0.03% to 133.71 points, remaining stable between 133 and 135 points.

Outlook: As demand from students and families continues to surface, the rental market is expected to maintain a steady-to-slightly-rising trend in the short term.

This week's index reflects market conditions from June 06 to June 12, 2025.