Hong Kong’s property market continues to regain momentum, with home prices maintaining their upward trend. The latest Eva Property Index (EPI), which tracks the secondary market, has risen for eight consecutive weeks to 112.36, up 0.34% week‑on‑week. The index has also remained above the pre‑stamp‑duty‑removal low of 110.92 for five straight weeks, returning to mid‑June 2024 levels and marking a 76‑week high. Compared with the beginning of the year, the index has increased 5.08%. Although still 22.91% below the historic peak of 145.76 recorded in 2021, the figures indicate a gradual recovery in market confidence. Across the major regions, the home price index showed a “three up, one down” pattern, with the New Territories West, New Territories East and Hong Kong Island all posting gains, while Kowloon remained under pressure.
Industry analysts noted that during the week under review, a fire incident in Tai Po prompted several developers to delay the launch of new projects, leading some buyers to return to the secondary market and thereby strengthening the bargaining power of existing homeowners. In addition, the Federal Reserve’s rate cut in late October, followed by local banks’ simultaneous reduction of the prime rate (P), helped ease the burden of home ownership. Although Hong Kong banks have not recently mirrored the Fed’s latest rate cut, the continued easing of Sino‑US relations, together with other supportive factors, has stimulated activity in the secondary market and provided a steady underpinning for the broader property market.
Rental Index Approaches Six‑Year High as Talent‑Driven Demand Continues to Support the Market
The rental market also strengthened. The latest Eva Rental Index (ERI) rose 0.15% week‑on‑week to 116.65, bringing its year‑to‑date increase to 2.62%. The index continues to move toward its August 2019 historical high of 118.54. Despite the end of the summer leasing peak, Quality Migrant Admission Scheme continues to fuel housing demand, while local rental needs remain robust, supporting a gradual rise in rents. Regionally, the rental index displayed a “three down, one up” pattern this week, underscoring a divergence in urban rental performance.
The 28Hse Research Department expects the rental index to fluctuate narrowly between 116 and 120 in the near term, with a potential re‑test of the August 2019 peak of 118.54.
Three Regions Post Home‑Price Gains; New Territories East Leads with an Eight‑Week Rally
This week’s regional home‑price performance showed “three up, one down.” New Territories East recorded the strongest gain, rising 0.57% week‑on‑week to 114.67, marking an eighth consecutive weekly increase. Analysts attribute this to delays in new‑project launches following the Tai Po fire, leaving the market reliant on isolated primary transactions such as Grand Seasons at LOHAS Park. As a result, buying power shifted toward the secondary market, further strengthening sellers’ bargaining positions.
New Territories West also performed well, climbing 0.10% week‑on‑week to 116.33, its second consecutive weekly rise. Similar to New Territories East, the region has seen limited new‑launch activity, with only sporadic transactions from earlier projects such as Gold Coast Bay．The Reserve contributing to market momentum, again driving buyers toward the secondary market.
Hong Kong Island saw a modest increase of 0.05% to 100.77, extending its gains for a second week. Weaker‑than‑expected sales from recent launches such as Aruna have strengthened secondary‑market sellers’ bargaining power, limiting room for price reductions and supporting home prices.
Kowloon, however, remained weak. The region’s index fell 0.40% week‑on‑week to 109.28, marking its third consecutive weekly decline. Developers plan to raise prices for projects such as One Park Place, Soyo Square, and Austin Bohemian, while Double Coast Phase 3— the lowest‑priced new development in the Kai Tak runway area this year — has exerted short‑term pressure on the secondary market. Motivated sellers in the area have resorted to price cuts to stay competitive.
Looking ahead, although Hong Kong banks have not followed the Fed’s latest rate cuts, improving China‑US relations are enhancing buyer, investor, and corporate sentiment. Having surpassed the pre‑stamp‑duty‑removal low of 110.92, the Eva Property Index (EPI) is expected to fluctuate between 107 and 114. Home prices are likely to remain on a steady upward trajectory, with full‑year gains estimated at 5–6%.
Rental Index Rebounds as Talent‑Driven Demand Supports the Market, Poised to Retest Historic High
Despite the end of the summer leasing peak, the rental market continues to receive support from sustained demand generated by various talent importation schemes and strong local rental fundamentals. The latest Eva Rental Index (ERI) shows a 0.15% weekly rise to 116.65, reversing last week’s decline. The index now sits just 1.89 points, or 1.59%, below the historical high of 118.54 set in early August 2019, with year‑to‑date growth at 2.62%.
Regionally, three major districts recorded declines, while Hong Kong Island registered an uptick. New Territories West fell 1.27% week‑on‑week to 135.37; Kowloon slipped 1.05% to 117.84, marking two consecutive weeks of declines; New Territories East edged down 0.25% to 119.50, also declining for a second week. Hong Kong Island stood out with a 1.49% rise to 125.09. While rental performance diverged across districts, overall demand remained well‑supported by talent inflow and strong local fundamentals.
Looking ahead, the narrowing Hong Kong–US interest‑rate gap and local banks’ decision not to follow the latest Fed rate cut may reduce the attractiveness of mortgage‑to‑rent cost comparisons, prompting some tenants to opt for longer‑term leases. Combined with continued demand generated by government talent importation schemes, both short‑ and long‑term rental levels are expected to trend higher. The 28Hse Research Department forecasts the rental index to hover between 116 and 120 over the next two months, with a strong chance of breaking above the historical high of 118.54.
These figures reflect market conditions from November 28 to December 04, 2025.
Like
