Hong Kong’s residential property market sentiment continued to improve. The latest Eva Property Index (EPI), which reflects secondary‑market price trends, has risen for nine consecutive weeks to 113 points, up 0.57% week‑on‑week. This marks the sixth consecutive week above the pre‑“cooling‑measures‑removal” low of 110.92 points, returning to levels last seen in mid‑May 2024 and reaching an 83‑week high. Although the index remains about 22.48% below the historical peak of 145.76 points in 2021, it has already gained 5.68% year‑to‑date, indicating a gradual recovery in market confidence. Notably, performance across districts diverged, showing a “three declines, one rise” pattern. Hong Kong Island, Kowloon and New Territories East declined, while New Territories West recorded an increase.
Industry observers noted that easing China–US relations and banks’ mortgage incentives have offset the impact of the unchanged interest‑rate environment, attracting a broad range of buyers back into the market. However, recent fire incidents have cast a shadow over sentiment. Some agents reported that around 30% of buyers showed limited interest in estates requiring major repairs, placing downward pressure on asking prices in older developments; certain owners seeking a quick exit have even offered properties at discounted levels.
This week, purchasing demand remained concentrated in leftover stock from primary‑market projects, with several developments recording sizeable transactions. This further weakened the bargaining power of secondary‑market sellers and contributed to the “three declines, one rise” outcome across districts. Overall, multiple favourable factors continue to support rising transaction activity in the secondary market, underpinning a steady upward momentum in home prices.
Rental Index at 116.27 Points; Seasonal Slowdown and “Cheaper to Buy Than Rent” Phenomenon Lead to Softer Conditions
The rental market softened this week. The Eva Rental Index (ERI) recorded 116.27 points, down 0.33% week‑on‑week and up 2.29% year‑to‑date. The index now stands about 1.91% below the historical high of 118.54 points set in August 2019. District‑level rental performance also displayed a “three declines, one rise” pattern. With the summer rental peak long over and the “cheaper to buy than rent” situation becoming increasingly common, rental levels eased this week.
According to the 28Hse Research Department, the rental index is expected to fluctuate narrowly between 116 and 120 points in the short term. Supported by talent‑attraction schemes and steady local end‑user demand, the index may even re‑test the August 2019 peak of 118.54 points.
District‑Level Housing Price Index: Three Declines and One Rise as Primary‑Market Leftover Stock Draws Demand
This week’s district‑level home price indices exhibited a “three declines, one rise” pattern. Kowloon recorded the sharpest downturn, with the index falling 0.51% week‑on‑week to 108.72 points, marking its fourth consecutive weekly decline. Following recent incidents such as the Tai Po fire, developers have slowed their launch schedules, though leftover units in earlier primary projects continued to register transactions. Sales records show that projects such as KT Marina and Cullinan Sky Phase 2 recorded 15 and 8 transactions respectively, reflecting resilient demand. Meanwhile, the first price list of Double Coast III was released at the lowest level among runway‑area launches this year, prompting secondary‑market owners to widen their negotiation margins in order to stay competitive, thereby placing additional downward pressure on district home prices.
New Territories East also declined, down 0.44% week‑on‑week to 114.17 points, ending an eight‑week upward streak. The district was similarly affected by competition from leftover primary‑market stock. Projects such as GRAND SEASONS and Le Mont Phase 3 recorded 21 and 9 transactions respectively, drawing purchasing power away from the secondary market and eroding sellers’ bargaining power.
Hong Kong Island fell 0.23% week‑on‑week to 100.54 points, ending a three‑week rise. Leftover units in projects such as State Pavilia and LA MONTAGNE recorded 9 and 6 transactions respectively, exerting pressure on secondary‑market prices and requiring sellers to offer greater discounts.
In contrast, New Territories West outperformed the market, rising 1.43% week‑on‑week to 117.99 points, its third consecutive weekly increase. Leftover stock in primary‑market projects—including GRAND MAYFAIR I–III, Grand Jete I–II, Hava, FLORA, Gold Coast Bay．The Reserve, and The YOHO Hub—saw only scattered or even zero transactions, causing buying interest to flow back into the secondary market. With little competition from new projects, secondary‑market sellers in the district faced reduced pressure to negotiate, and some were even able to raise asking prices, driving overall price levels upward.
Looking ahead, although Hong Kong banks have not followed the US Federal Reserve in cutting rates amid a narrowing interest‑rate gap, easing China–US relations and expected mortgage‑rate incentives may continue to support buying sentiment. With the Eva Property Index having broken above the pre‑“cooling‑measures‑removal” low of 110.92 points, the index is expected to consolidate between 107 and 114 points in the near term, maintaining a stable upward trajectory. Full‑year home‑price growth is projected at between 5% and 6%.
Rental Index: Week‑on‑Week Drop of 0.33% as Districts Show Three Declines and One Rise; New Territories West Outperforms
With the summer rental peak having passed, Hong Kong’s rental market softened slightly. The latest Eva Rental Index in at 116.27 points, down 0.33% week‑on‑week, and stands 2.27 points (1.91%) below the historic peak recorded in early August 2019. Year‑to‑date, the rental index has risen 2.29%.
District‑level rental movements again reflected a “three declines, one rise” pattern. New Territories East fell 0.56% to 118.83 points, marking a third consecutive weekly decline; Kowloon fell 0.24% to 117.56 points, also declining for three weeks; Hong Kong Island dipped 0.11% to 124.95 points, ending last week’s rebound. New Territories West was the only district to post an increase, rising 0.16% to 135.58 points. Despite the divergence across districts, strong rental demand from talent‑import schemes and local end‑users has kept overall rents at elevated levels.
Looking ahead, the narrowing Hong Kong‑US interest‑rate spread and banks’ decision not to cut rates alongside the Federal Reserve may moderate rental growth, especially as the “cheaper to buy than rent” dynamic persists, prompting some tenants to consider home purchases. Nonetheless, strong demand driven by talent‑import policies and robust long‑term local leasing needs is expected to support long‑term rental performance. 28Hse’s Research Department forecasts the rental index to fluctuate narrowly between 116 and 120 points over the next two months, with a chance of breaking through the historical high of 118.54 points.
These figures reflect market conditions from December 05 to December 11, 2025.
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