The latest Eva Property Index (EPI) rebounded significantly to 113.59 points, representing a week-on-week increase of 0.2% and serving as a clear signal of market recovery. Retrospectively, the index experienced a sharp correction in early January, falling from 114.79 to 113.46—a decline of 1.16%. This was followed by three weeks of narrow consolidation, with the index hovering between 113.36 and 113.47. This limited volatility indicated that the market was gradually digesting cautious sentiment. Momentum has now resumed, with all four major district sub-indices trending upwards. This broad-based rally suggests that price gains have expanded from individual estates to the wider market, accelerating the pace of recovery. Driven by robust primary market transactions bolstering confidence in the secondary market, the prevailing expectation is for a sustained trend of rising prices and volume. Consequently, the property market appears poised to establish a "seasonal boom" earlier than anticipated.
Regarding district performance, the week presented a universal rise across all four districts, led by Hong Kong Island and Kowloon. The momentum was primarily driven by fervent sales in the primary sector, with multiple new projects—such as Kabitat Tin Hau and the Deep Water Pavilia series in Hong Kong Island; PARK SEASONS, the Pavilia Forest, and Uptown East in Kowloon; as well as SIERRA SEA Phase 2B and the Grand Mayfair series in the New Territories—recording ideal transactions. Notably, SIERRA SEA Phase 2B saw price hikes for additional units due to strong sales, reflecting developers' bullish outlook. Strong absorption in the primary market successfully bolstered secondary homeowner confidence, leading to firmer asking prices. Aside from driving a four-week rising streak in Hong Kong Island, this also halted the downtrend in Kowloon and New Territories West, stabilizing overall property prices and reflecting the comprehensive release of purchasing power and a strengthening of market fundamentals. Looking ahead, as primary inventory is gradually absorbed, developers are expected to maintain active pricing strategies by launching additional units at higher prices, which will aid steady price appreciation. The price index is expected to consolidate between 110 and 116 points in the short term, preparing for the next wave of appreciation.
The rental market has continued to demonstrate resilience. Supported by government talent admission schemes and sustained housing demand from local households, rental levels have not been affected by the traditional off-season. The latest Eva Rental Index (ERI) recorded 116.66 points, reflecting a weekly increase of 0.14% and successfully ending a two-week decline. Year-to-date, the index has risen by 0.54%. Looking back to early January, the index climbed from 116.03 points on January 1 to 116.95 points on January 8, before fluctuating narrowly between 116.50 and 116.93 points. This limited volatility underscores the market’s ability to maintain stability even during seasonal lulls. At present, rental levels remain only 1.59% below the historical peak of 118.54 points set in August 2019. Analysts highlight that the index is well-positioned to challenge this high in the near term, potentially ushering in a “dual strength” scenario of both rental and sales market growth.
Property Market Indices Rise Across All Districts; Hong Kong Island and Kowloon Lead the Rally
Benefiting from ideal new project sales driving secondary homeowner confidence, property price indices in all four districts of Hong Kong rose this week, with Hong Kong Island and Kowloon showing the most significant gains. Latest data shows that local property market sentiment has turned active, and strong absorption in the primary market continues to release purchasing power. Supported by ideal sales of remaining new project stock, secondary homeowners have hardened asking prices, driving a simultaneous rise in all four district price indices this week, with Hong Kong Island recording a four-week winning streak and Kowloon and New Territories West successfully ending their downtrends.
Hong Kong Island performed most prominently, with the latest index at 106 points, up 2.64% week-on-week, marking four consecutive weeks of gains. The rally was mainly due to new project sales within the district, where Kabitat Tin Hau sold out completely and sales for the remaining Deep Water Pavilia series units were ideal, successfully focusing purchasing power on the primary market. Strong primary uptake enhanced secondary homeowners' confidence in the future market, leading them to generally raise asking prices and further pushing up overall district property prices.
Kowloon also performed well, with the index at 110.08 points this week, up 1.83% week-on-week, successfully ending a three-week decline. Sales for the PARK SEASONS series were stable, and remaining units in multiple new projects such as ONE PARK PLACE, the Pavilia Forest series, Villa Garda I, Highwood Phase 1, Uptown East, and KT Marina recorded successive transactions, significantly activating market sentiment. Secondary owners, seeing the market's absorption capacity, immediately raised asking prices, driving district prices upward.
The New Territories East property price index reported 112.59 points, up 0.46% week-on-week, rising for two consecutive weeks. After all units at SIERRA SEA Phase 2B were sold, the developer immediately launched price lists No. 3 and No. 4, with average discounted prices per square foot adjusted upwards by 4.5% and 7.52% respectively compared to price list No. 2, continuing a "stabilize price, promote sales" strategy that reflects developer confidence. Additionally, transactions for the Le Mont series inventory were recorded, prompting secondary owners to aggressively raise prices and driving district values upward.
The New Territories West index also recorded a slight increase this week, reporting 119.21 points, up 0.2% week-on-week, ending a three-week losing streak. Sales of the Grand Mayfair series inventory were ideal, keeping the primary market in focus. Driven by new project sales, secondary owner confidence rebounded, leading to successive price hikes and a comprehensive stabilization of district prices.
Looking ahead, as primary inventory is gradually digested, developers are expected to capitalize on ideal sales by launching additional units at higher prices, aiding steady price growth. Furthermore, despite fluctuating Sino-US relations causing capital to flow into the local property market, banks continuing to offer mortgage and interest rate incentives, and the "buying is cheaper than renting" dynamic becoming the norm amidst interest rate clarity, purchase intention is being stimulated. The Easy Property Price Index (EPI) is expected to hover between 110 and 116 points in the short term, with the overall trend likely to move steadily upward.
Rental Index Rebounds 0.14% to 116.66 Points, Ending Decline and Standing Just 1.59% Shy of Peak
The Eva Rental Index (ERI), which reflects the performance of Hong Kong’s secondary rental market, recorded 116.66 points this week, representing a weekly rebound of 0.14% and successfully ending a two-week decline. Reviewing early January, the index rose steadily from 116.03 points on January 1 to 116.95 points by January 8, before moving within a narrow band between 116.50 and 116.93 points. This stable trajectory highlights the market’s resilience even during the traditional off-season. Benefiting from government talent admission schemes that have brought in new population inflows, together with sustained rigid demand from local households, rental levels have not been constrained by seasonal factors. Instead, the market has demonstrated momentum toward challenging historical highs. Year-to-date, the rental index has accumulated a gain of 0.54%. At present, the index stands only 1.59% below the historical peak of 118.54 points recorded in August 2019, and analysts broadly expect a breakthrough in the near term, potentially ushering in a “dual strength” scenario of both rental and sales market growth.
District performance was mixed with two rises and two falls, with leasing demand clearly concentrated in New Territories East and Kowloon. New Territories East performed best, rising 1.32% week-on-week to 121.36 points, marking three consecutive weeks of gains and acting as the main support for the broader market; Kowloon also stabilized to 122.99 points, up 0.82% week-on-week. Conversely, New Territories West showed weakness, with the index at 134.81 points, recording a 0.44% drop and falling for three consecutive weeks; Hong Kong Island remained under pressure at 123.63 points, dropping another 0.39% week-on-week, also marking a three-week decline.
Looking ahead, the foundation of the rental market remains robust. The government's continued implementation of talent schemes, combined with the promotion of the "Study in Hong Kong" brand and the relaxation of restrictions on non-local students, is set to attract more students from the Mainland and overseas, injecting new momentum into the leasing market; coupled with keen housing demand from local families, this constitutes substantive support for the rental market. However, as market sentiment improves and the "buying is cheaper than renting" phenomenon appears in some estates, some tenants may be enticed to switch from renting to buying, which could slightly moderate the pace of rental increases.
Based on comprehensive analysis, the 28Hse Research Department predicts that the rental index will fluctuate between 116 and 120 points in the short term. Following a brief adjustment, there is a very high probability of breaking the historical peak within the next two months. In the long run, the rental trend for the full year of 2026 is expected to remain steadily upward, with an estimated annual increase of between 2% and 4%.
The above indices reflect market conditions from January 23, 2026, to January 29, 2026
