The sentiment in the local property market is improving. The Eva Property Index (EPI), which tracks the price movements in the secondary market, halted its decline from the previous week and resumed the six-week upward trajectory observed earlier. The index currently stands at 121.38 points, representing a week-on-week increase of 0.57%. Although the current figure remains approximately 16.73% below its historical peak of 145.76 points recorded in 2021, the gap has been steadily narrowing since last year, indicating a gradual restoration of market confidence. Among the regional sub-indices, three recorded gains while one declined. The price indices for New Territories West, New Territories East, and Kowloon performed well, whereas the Hong Kong Island index remained under pressure.
Analysts indicate that the price growth across the three districts is driven by the solid sales performance of first-hand inventory and robust absorption capacity in the local secondary markets. This has successfully stimulated trading sentiment and bolstered property prices in these areas. However, the impact of recent mainland capital outflow restrictions on the housing market, alongside the Federal Reserve's future interest rate movements, warrant close monitoring.
The leasing market is demonstrating a similarly positive trajectory. The Eva Rental Index (ERI), which tracks secondary market rents, currently stands at 120.18 points, representing a week-on-week increase of 0.21%. Having recorded gains for three consecutive weeks, the index has firmly established itself at the 120-point threshold for the first time, surpassing the historical peak of 118.54 points recorded in August 2019 by 1.38%. With the onset of the traditional summer leasing peak season, various districts have reported numerous instances of non-local students and mainland professionals making annual lump-sum rent payments, as well as securing leases at premiums above the prevailing per-square-foot rates of their respective estates. These factors have collectively propelled the rental index further upwards.
Regional Indices Record Three Gains and One Decline: Overall Primary Market Transactions Remain Steady with Resilient Secondary Market Absorption
This week, the regional property price indices recorded three increases and one decrease. New Territories West (NTW) registered the largest gain, resuming its upward trajectory to close at 125 points, up 0.73% week-on-week (w-o-w). New Territories East (NTE) and Kowloon also posted gains, rising by 0.46% and 0.26% w-o-w to 119.32 and 119.1 points, respectively. Conversely, Hong Kong Island bucked the trend, falling for the second consecutive week to 110.32 points, representing a w-o-w decline of 2.41%. Overall, while primary market transactions were not exceptionally robust, strong end-user demand coupled with a shortage of secondary market listings ensured that secondary market absorption remained solid, thereby supporting overall property prices.
The price growth in NTW was primarily driven by strong buyer sentiment. Despite a lack of primary market transactions in the district this week, a chronic shortage of secondary listings stimulated price appreciation. Fleming Lee, Associate Sales Director of Centaline Property Agency Limited, noted that the supply of listings in Tsuen Wan has remained persistently low. Approximately 70% of prospective buyers in the current market are end-users, reflecting robust demand. New listings are often absorbed quickly, prompting owners to hold firm on asking prices and consequently driving up regional property values. He added that tenants who secured cheaper rentals a year or two ago are now transitioning from renting to buying in response to the recent sustained rise in rents, further propelling property prices.
In terms of viewing activity, data from Midland Realty showed that the two major benchmark housing estates in NTW recorded 109 viewing appointments this weekend, an increase of 2.83% from the 106 groups recorded the previous weekend. Prospective buyers were not deterred by the steady primary market and continued to hunt for opportunities in the secondary market, with the expanding customer base providing additional support for property prices.
Looking ahead, developers are poised to release the sales brochure and open show flats for the new Yuen Long project, Garden Regency. Expected to be the first new development launched via price lists in the second half of the year, this move reflects developers' confidence in the district's purchasing power.
The upward price trend in NTE was largely fueled by the sales of unsold primary inventory. Notably, La Mirabelle I and Cloudview sold 7 and 2 units respectively. This active primary trading has concurrently improved sentiment in the secondary market. According to Hong Kong Property Services, four major benchmark estates in NTE recorded approximately 176 viewing appointments over the weekend of June 27-28, up about 2.33% from 172 groups the previous weekend. Midland Realty data also indicated that two major benchmark estates in the district recorded 128 viewing appointments, a slight w-o-w increase of 0.79%.
Looking forward, the redevelopment of the former Shaw Studios in Clear Water Bay, Sai Kung, spearheaded by Fosun International and others, commenced construction this week. The project will provide over 800 units with an estimated investment exceeding HK$10 billion. Slated for phased launches starting as early as the end of next year, this indicates a continuous pipeline of new supply in the district and reflects developers' optimism regarding future sales.
Similar to NTE, Kowloon saw prices rise on the back of satisfactory sales of primary inventory. 22 Square and Phase 4 of One Victoria Cove performed notably well, selling 13 and 8 units respectively this week. Other inventory projects, such as The Harmonie, the MIAMI QUAY series, Chill Residence, Connext, and Mont Verra, also recorded between 3 and 7 transactions each. With solid absorption in the primary market, secondary owners' negotiation margins naturally narrowed, supporting the upward movement of property prices.
May Chu, Managing Director of Love Property Agency Limited, stated that the volume of secondary listings in benchmark estates in Ho Man Tin and Kowloon Tong (such as In One, Grand Homm, Mantin Heights, GreenField Terrace, Parc Regal, Parc Oasis, and Village Gardens) remained persistently low this week. Furthermore, as many listings are sold with existing tenancies—preventing prospective buyers from conducting on-site viewings—some owners are standing firm on their asking prices, with some explicitly refusing to offer any price reductions.
Secondary viewing activities also reflected current market conditions. Midland Realty data revealed that seven major benchmark estates in Kowloon recorded 191 viewing appointments over the weekend (June 27-28), up 4.37% from 183 groups the previous weekend. Four major benchmark estates tracked by Hong Kong Property Services recorded 188 groups, a sharp w-o-w surge of 8.67%, indicating an influx of secondary market buyers that provides tangible support for property prices.
On Hong Kong Island, primary inventory transactions were relatively subdued, supported solely by the Headland Residences and La Montagne Phase 4B, which recorded 3 transactions each. Secondary owners were compelled to widen their negotiation margins to enhance property attractiveness, which dragged down property prices in the district.
28Hse Limited Data Researcher Alex Cheung expects the EPI to fluctuate between 112 and 124 points in the near term. He cautioned that attention should be paid to how the mainland's recent tightening of capital outflows will impact the property market; since the mainland's crackdown on capital flight, bulk purchases of primary properties by mainland buyers have subsequently declined. Furthermore, market expectations of potential interest rate hikes by the Federal Reserve in the second half of this year are anticipated to add undercurrents of uncertainty to future property market sentiment.
Rental Index Rises 0.21%, Stabilizing Above 120 Points for the First Time
As Hong Kong enters the traditional peak rental season, overall rental trends continue to improve. The ERI has risen for three consecutive weeks, most recently reaching 120.18 points, up 0.21% week-on-week, marking the first time it has firmly stood above the 120-point level. This reading is 1.38% higher than the previous peak of 118.54 points recorded in August 2019. The market expects that, supported by the peak-season effect, the rental index will maintain its upward momentum in the short term.
Regarding regional indices, the four major districts exhibited mixed performances, displaying a pattern of two advances and two declines. Indices for New Territories West and Kowloon rebounded: New Territories West reported 138.82 points, up 1.23% week-on-week; Kowloon reported 124.82 points, up 0.37% week-on-week. Conversely, New Territories East and Hong Kong Island softened slightly: New Territories East reported 123.06 points, down marginally by 0.03% week-on-week; Hong Kong Island reported 130.45 points, down 0.14% week-on-week, ending a three-week gaining streak.
The rental increase in New Territories West was primarily driven by high-priced leasing transactions and landlords adjusting their rental yields. In terms of transactions, a low-floor open-plan Unit N in Tower 5 of Ocean Camino, with a saleable area of 223 square feet, was leased to a mainland professional for HK$8,500 per month, translating to a unit rent of approximately HK$38.1 per square foot. Additionally, a high-floor one-bedroom Unit F in Tower 2 of Reach Summit, with a saleable area of 270 square feet, was leased for HK$11,250 per month, or approximately HK$42 per square foot. The unit rents of both transactions exceeded the recent 90-day average reported by 28Hse.
Lee noted that some landlords are leveraging the peak leasing season to adjust their rental yields. For instance, following the expiration of earlier, lower-priced leases, some landlords at Parc City in Tsuen Wan are re-leasing their units at higher current market rates to increase cash flow, thereby further pushing up the overall rent in New Territories West.
Rents in Kowloon were similarly supported by high-priced transactions and robust demand from mainland clients. A high-floor three-bedroom Unit D at Residence 228 and a mid-floor one-bedroom Unit B2 at The Vantage were leased for HK$25,200 and HK$17,500 per month, respectively, achieving unit rents of HK$45 and HK$63 per square foot, both above the recent average. Furthermore, leasing demand from mainland professionals and students remains strong. Lee added that the market recorded cases where mainland students, to avoid paying a full year's rent upfront, voluntarily offered an additional HK$1,000 per month to successfully secure a unit at Cullinan West near Nam Cheong Station. These factors served as the primary drivers for the upward rental movement in Kowloon this week.
Regarding New Territories East and Hong Kong Island, the recording of several below-market transactions slightly dragged down the regional rental averages. In New Territories East, a high-floor two-bedroom Unit E in Tower 5A of Wings at Sea II in LOHAS Park, with a saleable area of 504 square feet, was leased for HK$17,500 per month, or approximately HK$34.7 per square foot. On Hong Kong Island, a mid-floor one-bedroom Unit C at High West, with a saleable area of 383 square feet, was leased for HK$18,800 per month, or approximately HK$49 per square foot. The unit rents for both transactions were below the recent market average.
Looking ahead, Cheung expects the ERI to fluctuate between 114 and 124 points in the short term. With the commencement of the summer peak leasing season, demand from incoming professionals and non-local students has surged. Coupled with the persistently solid end-user demand from local families, the market will continue to experience a shortage of rental listings, and unit rents in certain housing estates are expected to reach new highs. In the long run, overall rents are projected to rise steadily this year, with an estimated annual growth of 2% to 4%. Having surpassed the 2019 peak, rental levels are poised to hit further record highs after the conclusion of the peak season.
The above indices reflect market conditions from June 26, 2026, to July 02, 2026.
