As the Year of the Snake draws to a close, the property market has concluded on an upward trajectory. The final Eva Property Index (EPI) of the lunar year is reported at 115.63 points, representing a week-on-week increase of 0.82%. This marks not only the third consecutive week of gains but also indicates accelerating momentum. Reviewing market conditions in January, the index fluctuated between 113 and 114 points; however, momentum has strengthened over the past four weeks, accumulating a 2% rise from the low of 113.36 points and successfully breaching the 115-point barrier. Compared to the beginning of the year (114.79 points), the cumulative year-to-date increase stands at 0.73%. The index is currently approximately 20.67% below the historical peak of 145.76 points recorded in August 2021. Heated sales in the primary market and the initiation of price hikes have successfully revitalized market sentiment, with capital gradually flowing back into the secondary market, driving an overall recovery in property prices.
Supported by the Hang Seng Index reclaiming the 27,000-point level and mainland buyers recording over 1,000 transactions for 11 consecutive months, market sentiment is robust. Consequently, developers are progressively scaling back discounts and even raising prices. Regarding district performance, New Territories East was the strongest performer, rising 1.81% week-on-week and recording a four-week winning streak. This was primarily driven by the sell-out of SIERRA SEA Phase 2B in Sai Sha and price increases in the Le Mont series. Kowloon and New Territories West rose by 1.6% and 1.44% respectively, both recording three consecutive weeks of gains, reflecting ideal primary sales driving the secondary market. However, Hong Kong Island prices softened slightly due to a lack of major new project focal points.
Looking ahead to the post-Lunar New Year period, new projects such as LOHAS Park Phase 13 and the Southside are set to launch. Coupled with market expectations that the upcoming Budget may introduce measures allowing MPF usage for home purchases, the index is expected to hover between 112 and 120 points in the short term, with the potential to challenge the 2021 highs in the medium to long term.
In the rental market, the Eva Rental Index (ERI) is reported at 116.27 points, down 0.2% week-on-week, marking two consecutive weeks of decline and hovering at the 116-point level for 14 weeks. The primary reasons for the decline include February being a traditional off-season, a significant year-on-year drop in applications for the Top Talent Pass and Quality Migrant Admission Schemes, and falling interest rates prompting some tenants to switch from renting to buying, thereby weakening rental demand. Despite short-term pressure, the relaxation of the non-local student quota to 40%, combined with local rigid demand, suggests rents are expected to fluctuate between 114 and 120 points in the short term.
HSI Reclaims 27,000 Level; Mainland Capital Inflow Persists; New Territories East Leads Price Gains
Driven by various macroeconomic factors, overall property market sentiment remained steady and positive this week. The Hang Seng Index reclaimed the 27,000-point level, with strong financial market performance improving investment sentiment. Concurrently, Mainland buyers remained active, with the market recording over 1,000 transactions involving Mainland clients for the 11th consecutive month, providing stable purchasing power. Supported by this demand, developers are progressively reducing discounts on primary projects, with some initiating price hikes. This week, the price indices of the four districts presented a pattern of three gains and one decline; New Territories East, Kowloon, and New Territories West all recorded increases, reflecting that purchasing power from the primary market is gradually flowing into the secondary market.
New Territories East was the top performer among the four districts this week, with the index reporting 115.72 points, a week-on-week increase of 1.81%, marking a fourth consecutive week of gains. The increase was primarily driven by the sales performance of the SIERRA SEA Phase 2B project in Sai Sha, where all of the over 200 units launched were sold out. Additionally, the developer adjusted prices for selected units in the Le Mont series upwards by 1.8% to 3%. Furthermore, sales of remaining stock at another new project in the district, UNI RESIDENCE, were also ideal. Driven by primary market sales, some buyers chose to enter the market before the holidays, stimulating district transaction activity and pushing overall property prices upward.
The Kowloon District Index reported 113.03 points, rising 1.6% week-on-week and recording gains for the third consecutive week. Remaining stock in multiple primary projects within the district—including Uptown East, KT Marina, the Pavilia Forest series, as well as Victoria Voyage Phase 1A, Highwood Phase 1, and the Belgravia Place series—continued to record transactions. Notably, the recently occupied SEASONS PLACE in LOHAS Park, Tseung Kwan O, recorded approximately eight secondary transactions this month; original owners exited with profits, helping to maintain investor confidence in holding assets within the district.
The New Territories West Index was latest reported at 106.92 points, a week-on-week increase of 0.87%, also marking a third consecutive weekly rise. Transactions for remaining stock in the benchmark Grand Mayfair series continued, indicating stable purchasing power in the district. Secondary homeowners, witnessing stronger market absorption, have narrowed bargaining margins, with some raising asking prices, thereby driving property prices in the district upwards.
The Hong Kong Island Index reported 106.9 points this week, a slight week-on-week decline of 0.02%, ending its previous strong run of four consecutive increases. The correction was mainly due to a lack of major new project focal points in the short term, with the market supported only by transactions of remaining stock in projects such as the Headland Residences and Central Residence by the Park, resulting in narrow consolidation. However, future sentiment remains positive. The developer has uploaded the sales brochure for the Southside Phase 6B, GRANDE BLANC, planning to launch sales via price list or tender after the Lunar New Year. Meanwhile, the Ao Chen project in the same district recently raised prices by up to 6.4%, which, combined with market news regarding potential price adjustments for Blue Coast II, reflects a bullish outlook from developers on the district's future performance.
Looking ahead, developers are expected to maintain existing sales strategies to gradually digest primary inventory. After the Lunar New Year, the market will welcome multiple new projects, including LOHAS Park Phase 13, the remaining phases of The Southside, and Cloudview. Additionally, the market is closely watching whether the new Budget will introduce measures involving the use of MPF for home purchases. Synthesizing current market capital flows and new project supply, the price index is expected to hover between 112 and 120 points in the short term, with the potential to steadily test higher levels and challenge the August 2021 peak in the medium to long term.
Rental Index Drops for Two Consecutive Weeks; Talent Scheme Applications Slow; Demand from International Students to Support Future Market
February is traditionally a quiet season for the rental market. Compounded by macroeconomic data indicating a deceleration in the inflow of foreign talent, rental trends have shown volatility. According to government data for 2025, the Top Talent Pass Scheme recorded 35,705 applications and 31,508 approvals, representing year-on-year declines of 30% and 23%, respectively. The contraction in the Quality Migrant Admission Scheme was even more pronounced, with applications and approvals falling to 18,707 and 7,101—marking sharp year-on-year drops of approximately 70% and 40%. This suggests that rental demand derived from talent admission schemes has not been as robust as anticipated. Furthermore, as bank interest rates recede, financially capable tenants are shifting from renting to purchasing, thereby diluting the tenant pool. Influenced by these factors, the Eva Rental Index (ERI) latest report stands at 116.27 points, a week-on-week decline of 0.2%. This marks the second consecutive week of decline, with the index hovering at the 116-point level for 14 consecutive weeks, reflecting a phase of market consolidation.
This week, rental performance across the four major districts showed a split of two increases and two decreases. Kowloon staged a recovery, with the index reporting 123.56 points, a week-on-week rise of 0.99%, ending last week's decline. New Territories West also stabilized, reporting 133.45 points, a slight increase of 0.07% week-on-week, ending a four-week losing streak. Conversely, New Territories East and Hong Kong Island showed weaker trends. New Territories East reported 120.67 points, a slight week-on-week dip of 0.02%, falling for two consecutive weeks. Hong Kong Island recorded the steepest decline, latest reported at 119.58 points, down 1.53% week-on-week. This marks five consecutive weeks of decline, reflecting ample rental supply in the district and the gradual absorption of rental demand, causing continued pressure on rents.
Synthesizing various market factors, the 28Hse Research Department predicts that the rental index will fluctuate between 114 and 120 points in the short term. Although the decline in application figures for various talent schemes poses certain pressure on the rental market, the market retains considerable support. The government is actively promoting the "Study in Hong Kong" brand; the quota for non-local university students has been relaxed to 40% this academic year. Additionally, Direct Subsidy Scheme (DSS) primary and secondary schools will increase the number of classes and class sizes to admit more non-local students, bringing new rental demand to the market. Coupled with the rigid housing demand of local families, the fundamentals of the rental market remain solid.
Looking ahead, as demand from non-local students is gradually released, it is estimated that the rental index still has the opportunity to challenge the historical high of 118.54 points in the next two months. In the long run, the rental trend for the full year of 2026 is expected to maintain a steady upward trajectory, with the annual increase estimated to range between 2% and 4%.
The above indices reflect market conditions from February 06, 2026, to February 12, 2026.
