Both property prices and rents edged up this week. The Eva Property Index (EPI) currently stands at 120.71 points, representing a marginal week-on-week increase of 0.01%. It has risen for three consecutive weeks and remained stable above the 120-point level for five consecutive weeks, although it is down by approximately 17.19% from its historical peak in August 2021. Meanwhile, the Eva Rental Index (ERI) currently stands at 122.16 points, edging up by 0.05% week-on-week. This successfully halted the previous week's decline, maintaining a position above the 122-point mark for three consecutive weeks and reaching a new historical high.
Recently, secondary property price trends in Hong Kong have been largely driven by primary market sales, resulting in mixed performances across different districts. Urban property prices have shown an upward trajectory, with the Kowloon district recording significant gains. This was primarily fueled by the robust sales of new developments such as Chester II, which successfully sold 173 units in its first two rounds of sales, demonstrating ample market absorption capacity. On Hong Kong Island, a reduction in primary market unsold inventory and the gradual absorption of lower-priced listings have prompted homeowners to adopt a firmer stance on asking prices. The strong sales performance of new urban projects has effectively improved overall market sentiment, while the return of prospective buyers who missed out on primary launches has provided substantial support for secondary market pricing and transaction volumes in these respective districts. Conversely, the two New Territories districts experienced slower primary inventory clearance; lacking a market focal point, homeowners have softened their asking prices, thereby exerting downward pressure on property prices.
Looking ahead, the market is currently dominated by a strong wait-and-see sentiment following the recent interest rate hike by the US Federal Reserve, which is expected to hinder the upward momentum of property prices in the short term. On the other hand, many prospective buyers have deferred their purchasing plans and pivoted to the leasing market. Coupled with the steady influx of international students and professionals, as well as the underlying demand from local families, rigid demand for rentals in Hong Kong remains persistently high. Frontline agents report that premium luxury properties, in particular, continue to be highly sought after by mainland Chinese and expatriate tenants, resulting in a consistently stable rental performance. The 28Hse Research Department projects that ERI will increase by approximately 3% to 8% for the full year.
Urban Property Prices Trend Upwards; Kowloon Leads with a 2.62% Increase
The regional property price indices recorded two gains and two declines this week, with urban areas performing well while the New Territories registered a drop. Kowloon saw the most significant growth, with its index reaching 116.52, up 2.62% week-on-week, marking a two-week consecutive rise. The Hong Kong Island index stood at 108.61, representing a 0.61% weekly increase and successfully ending a three-week losing streak. Meanwhile, New Territories West and New Territories East reported indices of 125.16 and 118.85, edging down by 0.18% and 0.09% week-on-week, respectively. The former halted its upward trend from the previous week, while the latter recorded a two-week consecutive decline.
The notable rise in Kowloon's property prices was primarily driven by the strong sales performance of large-scale new projects and unsold primary inventory in the district, prompting secondary market owners to narrow their room for negotiation. In the primary market, the Chester series recorded a total of 174 transactions, with the first two rounds of Chester II’s sales accounting for 173 units, reflecting robust market absorption. Additionally, projects such as KT Marina Phase 2, Chill Residence, DOUBLE COAST III, Bondlane II, and One Edward recorded between 4 and 12 transactions respectively. The active primary market sentiment has led spillover buyers—who missed out on new launches—to return to the secondary market to seek available units, thereby supporting the upward trend in the district's secondary property prices.
Furthermore, developers continued to launch projects in the district at market-clearing prices. The Sterling II launched its first batch of 85 units in mid-September at an average discounted price of approximately $18,680 per square foot, representing a discount of about 25% to 30% compared to the initial launch of Grand Victoria in the same district. The entry-level price per square foot for a one-bedroom unit was also roughly 28% lower than that of Grand Victoria I. Developers' low-pricing strategies successfully stimulated transaction volumes, causing spillover demand to flow back into the secondary market, which in turn drove up overall property prices in the district.
The property price trend on Hong Kong Island continued its upward trajectory. The Legacy Phase 2 and the Headland Residences series recorded 10 and 5 transactions, respectively. Given the limited unsold primary inventory in the district, robust sales in new developments have directly driven up secondary market prices. As the remaining primary stock is gradually absorbed, secondary homeowners have generally narrowed their negotiation margins, stimulating a short-term increase in regional property prices. Concurrently, property viewing activities have intensified. According to data from Midland Realty, weekend viewing appointments across the four major indicator estates on Hong Kong Island reached 142 groups, representing a week-on-week increase of 2.9%. In the primary market, the initial launch of 50 units at State Residence, at an average discounted price of HK$20,613 per square foot, was priced in line with current market conditions—approximately 13% lower than the secondary market prices of the nearby Novum East. The developer's competitive pricing strategy has sparked a subscription boom. Anticipating a substantial influx of spillover demand from unsuccessful subscribers, secondary homeowners have proactively narrowed their negotiation margins. Consequently, asking prices have hardened, further underpinning the upward momentum of property prices on Hong Kong Island.
Property prices in New Territories East and New Territories West both retreated, primarily weighed down by sparse primary market transactions in the regions. The primary market in New Territories East was supported only by isolated transactions in La Mirabelle series, The Pavilia Farm III, and Centra Horizon; meanwhile, New Territories West mainly recorded sporadic trades at Garden Regency. To maintain competitiveness, secondary owners in these districts have generally softened their asking prices, putting pressure on overall property values. Despite the sluggish secondary transactions dragging down prices in the New Territories, the Sai Kung house project, Mount Hebe, has just uploaded its sales brochure and announced an upcoming tender in the near term. This indicates that developers remain undeterred by the market downturn and intend to test the absorption capacity of the district's luxury residential market.
28Hse Limited Data Researcher Alex Cheung maintains his previous forecast, expecting the EPI to fluctuate between 112 and 124 points in the short term. The US Federal Reserve announced a 0.25% interest rate hike this week, prompting market concerns over whether the rate hike cycle will resume. Consequently, most buyers have adopted a wait-and-see approach, dampening overall market sentiment. Furthermore, as the latest Policy Address lacked favorable measures for the property market, the market remains devoid of positive catalysts. It is expected that property prices will be prone to decline rather than rise in the coming months, with the overall trend remaining soft.
Rental Index Halts Decline with a Slight 0.05% Increase; New Territories West Underpins the Broader Market
As the summer holiday concludes, overall rental market activity has moderated, leading to a loss of upward momentum in rents across multiple districts. However, rental demand in New Territories West remains robust, driving a slight increase in overall rents against the broader market trend. The ERI recently reported at 122.16 points, edging up 0.05% week-on-week and successfully halting the previous week's decline. The index has stabilized above the 122-point level for three consecutive weeks, surpassing the 2019 peak of 118.54 points by approximately 3.05%.
Looking at regional trends, rents recorded declines in three districts and an increase in one. New Territories West reported 139.21 points this week, up slightly by 0.06% week-on-week, taking the lead in halting the downward trend. In contrast, the other three districts softened across the board, ending their previous consecutive gains. Kowloon dropped 0.34% week-on-week to 125.05 points; New Territories East fell 0.55% week-on-week to 126.11 points; and Hong Kong Island recorded a week-on-week decrease of 1.71% to 132.58 points.
Several housing estates in New Territories West recorded transactions with high per-square-foot rents, helping to stabilize the broader rental market. For instance, a three-bedroom unit (Room B, high floor, Tower 6) at THE YOHO Hub, with a saleable area of 537 sq ft, was leased for $27,000, translating to a high unit rent of $50.3 per sq ft. In the same district, a two-bedroom unit (Room 5, high floor, Block B) at Ho Shun Yee Building, with a saleable area of 283 sq ft, was rented for $11,500 monthly, reaching $40.6 per sq ft. A two-bedroom unit (Room H, high floor, Tower 1) at Miami Beach Towers, with a saleable area of 398 sq ft, was also leased for $12,000, or $30.2 per sq ft. According to 28Hse data, these transaction rents all exceeded the 90-day average rents of $46, $39, and $29 per sq ft for the three respective estates, reflecting strong leasing demand in the district and providing support for overall rents.
Following the conclusion of the summer peak leasing season, the volume of high-priced lease transactions has declined. Consequently, rental trends across Kowloon, New Territories East, and Hong Kong Island are facing noticeable downward pressure, with the market frequently recording transactions concluded at slightly below the average rent per square foot. In Kowloon, a two-bedroom unit (Room E, low floor, Tower 8) at KOKO MARE in Yau Tong, with a saleable area of approximately 464 sq ft, was leased to an out-of-district tenant for $22,000 per month, or about $47.4 per sq ft. In New Territories East, a two-bedroom unit (Room B2, low floor, Tower 3) at Le Mont Phase 3 in Tai Po, with a saleable area of 438 sq ft, was leased to a family for $16,600, or $38 per sq ft. On Hong Kong Island, a one-bedroom unit (Room F, mid-floor) at Des Voeux W Residence in Sai Ying Pun, with a saleable area of 278 sq ft, was leased to a mainland student for $22,500, or approximately $81 per sq ft. According to 28Hse data, the 90-day average rents for these three estates were $53, $44, and $85 per sq ft, respectively. Notably, the latest transaction rents for KOKO MARE and Le Mont Phase 3 were approximately 10.57% and 13.64% below their respective averages. Such below-market transactions have dragged down the overall rental levels in these districts.
Impacted by recent interest rate hikes, many prospective buyers have adopted a wait-and-see approach and deferred their home purchasing plans, redirecting their housing needs to the rental market. This shift from buying to renting has further driven up the demand for rental properties. Meanwhile, leasing transactions for premium properties remain robust. Sam Yeung, Director of Homeplus Property Consultants Limited, noted that detached houses such as Floral Villas in Sai Kung have long been favored by expatriates and locals alike, with a notable increase in mainland Chinese tenants in recent years. The rental trends of such luxury properties are less susceptible to external economic factors, demonstrating a relatively stable performance. Overall, with a portion of purchasing power flowing into the leasing sector and housing demand remaining robust, rental transactions are expected to stay active, providing solid support for the rental market.
In light of this, Cheung maintains his previous forecast, expecting the overall ERI to fluctuate within a range between 114 and 126 points in the short term, with full-year rents projected to rise by 3% to 8%.
The above indices reflect market conditions from September 11, 2026, to September 17, 2026.
