Entering the second week of the Year of the Horse, the festive atmosphere of the Lunar New Year remains prevalent, putting slight pressure on overall property market performance. The latest Eva Property Index (EPI) reported at 115.66 points, ending a five-week upward trajectory with a week-on-week (WoW) decline of 0.36%. Regional indices demonstrated three declines and one increase. Favorable sales performances of new primary projects on Hong Kong Island diverted prospective buyers from the secondary market, causing the district's index to drop by 2.02% WoW. The indices for Kowloon and New Territories West also recorded declines, whereas New Territories East registered an increase. In the first two months of this year, property prices have accumulated a slight gain of 0.76%, which remains approximately 20.65% below the historical peak of 145.76 points recorded in August 2021. Regarding the rental market, which is currently in its traditional low season, rental trends have been fluctuating. The latest Eva Rental Index (ERI) reported at 116.72 points, sustaining a level above 116 points for 16 consecutive weeks. It is anticipated that short-to-medium-term rental trends will trend steadily upwards. As the "Study in Hong Kong" policy gradually stimulates rental demand, the index is well-positioned to challenge the historical high of 118.54 points in the foreseeable future.
The softening of property prices and rents this week is believed to be attributed to the market's earlier wait-and-see sentiment ahead of the new Financial Budget. According to internal data from 28Hse, 138 primary market transactions were recorded this week, representing a significant surge of 56.82% compared to the 88 transactions recorded during the Lunar New Year period last week (February 13 to 19). In the secondary market, weekend transaction volumes (February 21 to 22) across the top ten blue-chip housing estates, as tracked by the four major real estate agencies, showed mixed performance. Centaline Property and Midland Realty recorded 8 and 7 transactions respectively, representing WoW increases of 33.33% and 40%; conversely, Ricacorp Properties and Hong Kong Property Services recorded 7 and 2 transactions, reflecting WoW decreases of 12.5% and 50% respectively. Given that the new Financial Budget did not introduce further stimulus measures for the property market, it is expected that property prices will continue to consolidate within the 112 to 120-point range in the short term, with the potential for a gradual upward trajectory in the medium-to-long term to challenge the 2021 peak levels.
Regional Price Indices Show Three Declines and One Rise; Hong Kong Island Plummets Over 2%
The latest regional property price indices indicate a mixed performance across Hong Kong's four major districts, with three recording declines and one registering an increase. Hong Kong Island suffered the most significant drop, snapping its previous upward trajectory to stand at 114.9 points, representing a week-on-week decline of 2.02%. The price correction in this district was primarily driven by robust activity in the primary market. Notably, the sales of 7 and 6 units at the Central Residence by the Park and Deep Water Pavilia II respectively diverted purchasing power away from the secondary market. Consequently, some secondary homeowners widened their room for negotiation to enhance their competitiveness.
Looking ahead, the developer of Blue Coast recently raised overall unit prices by 5% and still achieved a sell-out, reflecting solid market absorption capacity. Similarly, Deep Water Pavilia I and II at The Southside are also planning price hikes. It is anticipated that following the Lunar New Year holidays—specifically from March onwards—both primary and secondary market transactions will turn more active, which should help facilitate a rebound in property prices.
In Kowloon, property prices ended a four-week rally, reporting at 111.77 points, down 1.27% WoW. Multiple new projects within the district recorded transactions, including the Pavilia Forest series (11 transactions), ONE PARK PLACE (8 transactions), KT Marina (6 transactions), the Victoria Voyage series (5 transactions), KOKO Mare (4 transactions), and Grand Homm (4 transactions). The primary market absorbed a substantial amount of purchasing power, exerting downward pressure on secondary property prices. Furthermore, the developer of Pavilia Forest II recently announced a 1% price increase for selected units, reflecting developer confidence in the market outlook.
Property prices in New Territories West fell for a second consecutive week, reporting at 120.92 points, a marginal WoW decrease of 0.03%. The Grand Mayfair series recorded 5 transactions this week, similarly diverting a portion of prospective buyers from the secondary market.
New Territories East was the sole district to record an increase, reporting at 114.79 points, a slight WoW rise of 0.09%. With limited primary market inventory available in the district (primarily supported by Park Seasons), some prospective buyers redirected their focus to the secondary market, providing mild support that drove the district's property prices slightly higher.
Overall, new projects such as Cloudview, the Grand Austin Bohemian, and Zendo House have been launched successively in recent days, and the first batch of 48 tender units at Kennedy Bay sold out on the same day, bolstering overall market sentiment. Furthermore, the geopolitical instability in the Middle East has had a limited impact on the local property market and may even attract some safe-haven capital inflows.
Multiple developers and property consultancy firms maintain an optimistic outlook, revising their full-year property price growth forecasts upwards to 15% to 20%, with expectations that transaction volumes and property prices will grow in tandem. In the short term, the Eva Property Index (EPI) is projected to hover between 112 and 120 points; in the medium-to-long term, property prices possess the potential to return to the historical highs observed in 2021.
Rental Index Dips 0.16% to 116.72 Points; Sustains 116-Point Level for 16 Consecutive Weeks
Hong Kong is currently still navigating the traditional low season for leasing, resulting in fluctuating rental trends. The latest Eva Rental Index (ERI) reported at 116.72 points, ending its recent upward streak. Despite a marginal WoW decline of 0.16%, the index has maintained a level above 116 points for 16 consecutive weeks, underscoring stable rental demand. In the first two-plus months of 2026, rents have accumulated a 0.59% increase, sitting just 1.54% shy of the historical peak of 118.54 points recorded in August 2019.
Regional indices exhibited two increases and two decreases. Hong Kong Island reported at 122.25 points, up 1.83% WoW, marking a two-week consecutive rise; New Territories East reported at 120.93 points, up 0.62% WoW, reversing its previous downward trend; New Territories West reported at 133.93 points, down 1.6% WoW, marking its first decline following a two-week rally; Kowloon reported at 121.81 points, down 1.01% WoW, falling for a second consecutive week.
The market broadly anticipates that as the traditional peak leasing season approaches between April and September, rents across all four districts will trend steadily upwards. Furthermore, the government's promotion of the "Study in Hong Kong" brand, the relaxation of the non-local student admission quota at universities to 50%, and Direct Subsidy Scheme (DSS) schools admitting more non-local students—combined with the rigid housing demand from local families—are collectively fueling an increase in rental demand.
The 28Hse Research Department projects that, even though the current paradigm where "mortgage payments are lower than rental payments" remains intact, the Eva Rental Index (ERI) still has a strong likelihood of ascending to the historical high of 118.54 points within the next two months. In the long term, full-year rental growth for this year is forecast to range between 2% and 4%.
The above indices reflect market conditions from February 20, 2026, to February 26, 2026.
