Property prices continued their upward trend this week, while rents experienced a slight softening from recent highs. The Eva Property Index (EPI) stood at 120.7 points, representing a week-on-week increase of 0.5%. The index has recorded gains for two consecutive weeks and maintained its position above the 120-point level for four consecutive weeks, though it remains approximately 17.19% below the historical peak recorded in August 2021.
Recent pricing trends in the secondary market have been primarily driven by primary market sales and property viewing volumes, resulting in divergent performance across different districts. New projects in Kowloon and the New Territories West recorded active transactions alongside a steady increase in viewing volumes. Notably, the highly anticipated project The Sterling I successfully absorbed substantial purchasing power, thereby driving up overall property prices. Frontline agents noted that robust sales of new projects in Kowloon have improved overall market sentiment, prompting certain tenants to transition from renting to purchasing. The active primary market has concurrently provided solid support for secondary transaction volumes and prices within the same district. Conversely, the slower absorption rate of unsold primary inventory in Hong Kong Island and the New Territories East has exerted downward pressure on property prices in these two regions.
Turning to the rental market, the Eva Rental Index (ERI) stood at 122.1 points, registering a marginal week-on-week decline of 0.03% and ending a seven-week consecutive upward streak. Nevertheless, the index has sustained its position above the 122-point threshold for two consecutive weeks, indicating resilient market support at elevated levels.
Constrained by capital flows and the recent 0.25% interest rate hike by the Federal Reserve, the market is currently assessing whether the rate hike cycle will resume. This prevailing wait-and-see sentiment is expected to impede the upward momentum of property prices in the short term. In contrast, rigid demand in the local rental market remains persistently high. Benefiting from the continuous influx of professionals and international students, rents are projected to resume their upward trajectory following a brief consolidation. The rental market is expected to sustain its growth momentum throughout the year and may potentially challenge historical highs.
Property Prices Across Four Regions Show Mixed Performance; Kowloon Rises by Nearly 1.3%
The property price trends across the four major regions varied this week, recording two increases and two decreases. Both Kowloon and New Territories West rebounded, with the latest indices reported at 113.54 and 125.39 points, representing week-on-week increases of 1.28% and 1.04%, respectively. Conversely, New Territories East snapped its upward momentum from the previous week, while Hong Kong Island recorded its third consecutive week of decline. The indices for the two districts were reported at 118.96 points and 107.94 points, translating to week-on-week drops of 0.61% and 1.28%, respectively.
The price rebound in Kowloon was primarily driven by the robust sales of new projects in the district, namely KT Marina Phase 2 and The Sterling I. KT Marina Phase 2 recorded a total of 127 transactions through public sales and tenders, while the third round of sales for The Sterling I saw 120 units sold, accounting for nearly 90% of the units offered. In addition, projects such as One Victoria Cove series, One Edward, Victoria Voyage Phase 1A, Montego Bay, and MIAMI QUAY I collectively sold dozens of remaining inventory units. The active primary market has prompted developers to launch additional units at higher prices. For instance, DOUBLE COAST III released a new price list earlier this month, with the average discounted price per square foot approximately 5% higher than the previous batch. KT Marina Phase 2 and Chester II also subsequently released additional units, with slight price increases on selected flats. This reflects developers' confidence in the market outlook and buyers' purchasing power.
Terence Ho, Account Director of United Properties Limited, analyzed that the pricing strategies of new projects and the strong sales of The Sterling I have improved the market sentiment in urban Kowloon, providing support for nearby secondary market properties. For example, a tenant who rented a three-bedroom unit at Celestial Heights in Ho Man Tin for HK$53,000 a month a year ago is currently seeking a four-bedroom unit priced under HK$30 million for long-term self-occupation. This demonstrates that the strong sales of new projects have driven an overall improvement in market sentiment, prompting some financially capable tenants to transition from renting to buying, which in turn bolsters the secondary market.
Property viewing volumes have risen concurrently, indicating that new projects have successfully attracted the attention of prospective buyers. According to consolidated data from Centaline Property, Midland Realty, and Hong Kong Property Services, weekend viewing appointments at several large-scale blue-chip estates in Kowloon recorded approximately 185 to 193 groups, representing a week-on-week increase of over 2% to 6%. This reflects a proactive market entry sentiment among buyers, with the primary market driving secondary property prices upward.
Property prices in New Territories West also trended upward, benefiting from an increase in viewing volumes and the continuous absorption of remaining primary market inventory. Data from Centaline Property revealed that weekend viewing appointments at the three major blue-chip estates in New Territories West rose by over 3% week-on-week to approximately 59 groups, while Garden Regency and Grand Mayfair series recorded over a dozen transactions combined. As the unsold inventory in New Territories West is lower than in the other three regions, recent trading activity has been largely concentrated in this district, making local secondary market prices more susceptible to primary market sales performance. Given the proactive market entry attitude of prospective buyers and the solid absorption capacity of the primary market, secondary market owners have adopted a firmer stance on their asking prices, thereby driving up property values.
On the other hand, secondary market property prices in New Territories East halted their upward trend from the previous week due to the slow absorption of remaining primary market inventory. The district has recently lacked large-scale new project launches, leaving primary market transactions to rely primarily on the remaining stock of UNI RESIDENCE and La Mirabelle series. Given the lack of focal points in the primary market, secondary market owners are generally more willing to reduce their asking prices to enhance the appeal of their properties, thereby putting downward pressure on overall property prices.
The situation on Hong Kong Island is similar to that of New Territories East. The district has recently lacked large-scale new project launches, with primary transactions relying mainly on six deals at La Montagne Phase 4B. The subdued primary market has prompted many prospective buyers to adopt a wait-and-see approach, slowing down their pace of market entry and resulting in a decline in regional property prices.
28Hse Limited Data Researcher Alex Cheung maintains his previous forecast, projecting that the EPI will hover between 112 and 124 points in the near term. The recent tightening of capital outflows from Mainland China, coupled with the US Federal Reserve's announcement of a 0.25% (25 basis points) interest rate hike in mid-September, will inevitably dampen market sentiment, even though Hong Kong's three major note-issuing banks have maintained their prime rates unchanged. Furthermore, as the Policy Address delivered in mid-September offered limited new initiatives regarding housing policies, property prices are anticipated to remain under recurrent pressure in the coming months.
Rental Index Softens by 0.03% to Halt Seven-Week Rally; New Territories Under Pressure as Hong Kong Island and Kowloon Continue to Rise
The conclusion of the summer peak leasing season, coupled with multiple below-market leasing transactions recorded in the New Territories, has weighed on the market, leading to a slight retreat in overall rents. The latest ERI stands at 122.1 points, edging down by 0.03% week-on-week and ending a seven-week rally. The index has remained firmly above the 122-point level for two consecutive weeks, approximately 3% higher than the 2019 peak of 118.54 points. With steady housing demand from local families and a continuous influx of overseas talents settling in Hong Kong, short-term rents are expected to hover at high levels.
The four major districts exhibited divergent trends this week. New Territories West recorded the largest drop, falling 0.7% week-on-week to 139.13 points and halting its previous upward momentum. New Territories East stood at 126.81 points, dipping slightly by 0.06% week-on-week and ending a four-week streak of gains. Conversely, Hong Kong Island and Kowloon both performed well, reporting 134.88 and 125.48 points respectively, representing week-on-week increases of 0.92% and 0.35%. Both districts have risen for two consecutive weeks. The two New Territories districts recently recorded multiple transactions with per-square-foot rents below their respective estate averages, dragging down the overall regional indices. In contrast, Hong Kong Island and Kowloon registered more high-priced leasing transactions, driving up overall rents in these two regions.
Rents in New Territories West experienced a pullback. A three-bedroom unit in Flat B1, mid-floor of Tower 1B, YOHO West Parkside in Tin Shui Wai, with a saleable area of 592 square feet, was recently leased for HK$22,500 per month, translating to HK$38 per square foot. A two-bedroom unit in Flat D, low-floor of Tower 3, Nerine Cove in Tuen Mun, with a saleable area of 522 square feet, was leased for HK$14,000 per month, or HK$26.8 per square foot. According to 28Hse data, the average per-square-foot rents for these two estates over the past 90 days were HK$41 and HK$28 respectively, meaning the aforementioned transactions were approximately 4% to 7% below market rates. A significant number of such lower-priced leasing cases in the district has weighed down the overall rent in New Territories West.
Rents in New Territories East also saw a slight decline. Taking The Wings in Tseung Kwan O as an example, a three-bedroom unit in Room B, low-floor of Tower 3B, Phase 2, with a saleable area of approximately 827 square feet, was leased for around HK$39,500 per month, or HK$48 per square foot. This is in line with the estate's 90-day average on the 28Hse platform. Following the summer holidays, high-priced transactions have decreased, and the market is now dominated by deals struck at or slightly below average market rates, causing a marginal drop in district rents.
Rents in Kowloon continued their upward trajectory. A one-bedroom unit with an inner street view in Flat A3, mid-floor of Timber House in Ho Man Tin, with a saleable area of 272 square feet, was leased for HK$18,500, or HK$68 per square foot. The unit was rented by a Mainland Chinese student who prepaid a year's rent in advance. The transaction rent per square foot was nearly 8% higher than the platform's average during the same period, reflecting sustained housing demand from Mainland students and driving up rents in the district.
Furthermore, individuals arriving in Hong Kong under various talent admission schemes remain a major driving force in the leasing market. Ho noted that a four-bedroom unit with a parking space at One Mayfair on Broadcast Drive, Kowloon Tong, featuring a saleable area of 1,686 square feet, was swiftly leased for HK$78,000 shortly after being listed, equating to HK$46.3 per square foot. Such rapidly concluded transactions demonstrate that robust demand from overseas talents continues to propel district rents upward.
Selected estates on Hong Kong Island also recorded high-priced transactions. A three-bedroom unit in Room A, mid-floor of Village Garden in Happy Valley, with a saleable area of 592 square feet, was leased by a local tenant for HK$34,000 per month, or HK$57.4 per square foot. The original owner purchased the unit for HK$9.5 million in July this year and leased it out immediately upon handover, achieving a rental yield of 4.3%. The estate's 90-day average rent per square foot stands at HK$51, with a yield of approximately 3.7%. The aforementioned transaction is notably higher than the 28Hse average, serving as a primary catalyst supporting rents on Hong Kong Island.
Inbound talents under various admission schemes and international students, along with local families, are expected to remain the mainstays of the leasing market, keeping overall demand robust. Cheung similarly maintains his previous forecast for the rental market, projecting that the ERI will fluctuate between 114 and 126 points in the near term. Full-year rents are expected to rise by 3% to 8%, with the potential to repeatedly hit new historical highs or consolidate at elevated levels.
The above indices reflect market conditions from September 4, 2026, to September 10, 2026.
