The property market exhibited mixed performance this week, with the overall trajectory of property prices remaining volatile. The Eva Property Index (EPI) posted a latest reading of 121.27 points, edging down by 0.09% week-on-week and halting its previous upward momentum since last week. The index remains approximately 16.8% below its peak recorded in August 2021.
The four major sub-regional indices exhibited a mixed performance with three advances and one decline. Burdened by a backlog of unsold first-hand inventory, Kowloon experienced subdued trading activity, leading to a counter-trend drop of 1.76% in property prices. In contrast, Hong Kong Island and New Territories East were buoyed by the sales of remaining new project units. Coupled with an undersupply of secondary market listings in New Territories West, property prices across these three regions advanced steadily.
Meanwhile, the leasing market continued to demonstrate robust performance. Benefiting from the traditional summer peak leasing season, incoming professionals and non-local students are actively seeking accommodation, driving multiple districts to record high-priced leasing transactions. The Eva Rental Index (ERI) stood at 120.45 points, representing a week-on-week increase of 0.22%. The index has risen for four consecutive weeks, sustaining firmly above the 120-point threshold, and has surpassed its 2019 peak to establish a new historical high. To avoid bearing prolonged high rental costs, some tenants have opted to transition from renting to purchasing, which has indirectly provided support for property prices in regions such as the New Territories.
Sub-regional Indices Record Three Advances and One Decline; Kowloon Drops 1.76%
This week, the sub-regional property price indices recorded three advances and one decline. Kowloon experienced the most significant drop, terminating a two-week winning streak to report at 117 points, down 1.76% week-on-week. Conversely, property prices in the other three regions all recorded gains. Notably, New Territories East rose for two consecutive weeks to 120.3 points, up 0.82% week-on-week; Hong Kong Island ended a two-week decline, reporting at 110.75 points, representing a week-on-week increase of 0.39%; New Territories West also advanced for a second consecutive week, reaching 125.46 points, up 0.37% week-on-week.
The downward pressure on Kowloon's property prices was primarily attributable to a slowdown in first-hand sales within the district. This week, primary market transactions in the area were mainly driven by The Pavilia Forest series, Pano Harbour, and the MIAMI QUAY series, albeit with low transaction volumes. According to internal statistics from 28Hse, as of early July, the unsold first-hand inventory in Kowloon reached 9,235 units, accounting for over half of the citywide total of 17,158 units. The backlog of unsold new units has led to a quiet primary market, compelling second-hand homeowners to widen their negotiation margins to attract buyers, which consequently drove down property prices in the district.
On the other hand, the new project Connext in the district released its price list No. 6 on July 7, with an average discounted price of $22,008 per square foot, representing an increase of approximately 1.1% compared to the previous price list. On the same day, the developer also raised the prices of four unsold units by a maximum of 4.54%, and scheduled 23 units for sale on July 11. The developer's move to raise prices for the upcoming launch indicates their confidence in the market's absorption capacity. It is anticipated that next week's property price data will reflect the impact of this price hike.
Conversely, property prices in New Territories East continued their upward trajectory, largely benefiting from the satisfactory sales performance of unsold first-hand units. La Mirabelle I and The Pavilia Farm III sold 8 and 5 units, respectively. Buoyed by the positive sentiment in the primary market, second-hand homeowners in the district have adopted a firmer stance on their asking prices. Concurrently, property viewing activities in New Territories East remained active. The two major benchmark estates in the district recorded 119 groups of viewing appointments over the weekend, a slight week-on-week increase of 0.85%. This reflects that prospective buyers are continuously seeking listings in the secondary market, and the expanding customer base has provided solid support for property prices.
On Hong Kong Island, primary market sales remained stable. Over the past week, the Headland Residences, the DEEP WATER SOUTH series, and La Montagne Phase 4B collectively sold approximately 10 unsold units, with the Headland Residences and the DEEP WATER SOUTH series each recording 4 transactions. With first-hand sales performing reasonably well, second-hand homeowners naturally maintained a firm attitude towards their asking prices, enabling Hong Kong Island's property prices to successfully arrest their decline and rebound.
Although first-hand transactions in New Territories West were relatively subdued—supported only by 3 transactions each from the Grand Mayfair series and YOHO WEST Phase 1—property prices still managed to rise for two consecutive weeks. Carlos Lam, Founder and CEO of Centerland Property Limited, pointed out that high-quality listings in the district were largely consumed in the first half of the year. With the current market supply running low, homeowners are holding firm on their asking prices. Even though approximately 70% of prospective buyers are currently end-users who are relatively cautious with their offers, property prices continue to rise steadily amidst the supply-demand imbalance.
Lam added that, coinciding with the summer peak leasing season, unit rents in the district's housing estates have repeatedly hit new highs. Taking HAVA as an example, the saleable unit rent reached $39 per square foot earlier this month, and the unit was leased out within merely four days of being listed. To avoid bearing exorbitant rents over the long term, some tenants have opted to enter the market and purchase properties, serving as another catalyst for the rise in property prices.
Garden Regency, a new first-hand project located in Kam Tin, announced its maiden price list on July 9, involving 120 units predominantly comprising two-bedroom layouts. The first batch of units features an average discounted price of $14,039 per square foot. This is 0.72% and 7.27% higher than the initial launch prices of Grand Mayfair III ($13,938 in October 2025) and PARK YOHO Bologna ($13,088 in October 2022), respectively, marking a new high for the district in over two years. The project is expected to commence sales as early as next week. Although the developer's pricing strategy is somewhat aggressive, it reflects their confidence in the project's sales prospects, which has stimulated the property market sentiment in the district and even positioned it as a focal point in the market.
Property agency viewing data also indicates a robust desire among prospective buyers in the district to enter the market. According to data from Midland Realty, the two major benchmark estates in the district recorded approximately 110 groups of viewing appointments over the weekend, up 0.92% week-on-week. The increase in secondary market prospective buyers provides tangible support for property prices.
28Hse Limited Data Researcher Alex Cheung noted that the EPI is expected to fluctuate between 112 and 124 points in the short term. The future trajectory of the market will depend on several factors. The pricing and launch pace of new projects by developers, as well as the sales performance of unsold first-hand inventory, will serve as indicators of the market's absorption capacity. Meanwhile, if the US Federal Reserve implements interest rate hikes in the second half of the year, it will increase the financial burden on buyers. Coupled with the implementation of foreign exchange controls in the Mainland, which will inevitably affect the purchasing appetite of buyers, the overall property market sentiment is expected to be impacted.
Rental Index Advances 0.22% to Record a Four-Week Winning Streak, Sustaining Above 120 Points for Two Consecutive Weeks
Following its initial breakthrough above the 120-point threshold last week, the ERI posted a latest reading of 120.45 points this week. This represents a week-on-week increase of 0.22% and marks a four-week consecutive rise. By sustaining levels above 120 points for two consecutive weeks, the index continues to set new historical highs. Compared to the previous cyclical peak of 118.54 points recorded in August 2019, the current index is higher by 1.61%. As the market enters the traditional peak leasing season, rents are projected to maintain a steady upward trajectory in the short term.
Sub-regional indices exhibited a mixed performance with three advances and one decline. Kowloon recorded the most significant growth, with its index reaching 125.73 points, up 0.73% week-on-week, marking a two-week consecutive rise. The Hong Kong Island index stood at 130.68 points, edging up by 0.18% week-on-week and rebounding from its previous decline. The New Territories West index reported 138.98 points, posting a marginal week-on-week increase of 0.11% and rising for two consecutive weeks. Conversely, New Territories East faced downward pressure against the broader market trend, falling 0.64% week-on-week to 122.27 points, marking a two-week consecutive decline.
Throughout the week, Kowloon, Hong Kong Island, and New Territories West all recorded multiple leasing transactions executed at above-market rates, thereby driving the overall rental market upwards.
In Kowloon, a high-floor two-bedroom unit in Block A of Telford Gardens, with a saleable area of 556 square feet, was leased for $21,700. This translates to a saleable unit rent of $39 per square foot, surpassing the 28Hse 90-day average of approximately $35 per square foot. Additionally, a low-floor one-bedroom special unit with a flat roof in THE HADDON, featuring a saleable area of 225 square feet, was leased for $17,000. The unit rent reached $76 per square foot, which is also higher than the platform's average of $68 per square foot for the same period.
Hong Kong Island similarly witnessed high-priced transactions. A high-floor two-bedroom unit in Block 2B of Blue Coast (saleable area: 538 sq ft) and a mid-floor studio unit in Kennedy 38 (saleable area: 265 sq ft) were leased for $40,000 and $24,200, respectively. These equate to unit rents of $74.3 and $91.3 per square foot. Compared to the 28Hse 90-day average unit rents of approximately $59 and $82 for these two respective estates, current rental levels are noticeably elevated.
The trajectory in New Territories West aligned with that of Kowloon and Hong Kong Island. A high-floor two-bedroom unit in Tower 8 of THE YOHO HUB, with a saleable area of 470 square feet, was leased for $23,000, representing a unit rent of $49 per square foot—higher than the recent average of $45. Furthermore, a mid-floor two-bedroom unit in Block 5E of Tuen Mun Trend Plaza, with a saleable area of 346 square feet, was leased for $13,700. The unit rent of approximately $39.6 per square foot also exceeded the average of $37.
Lam added that a three-bedroom unit in Caribbean Coast and a two-bedroom unit in Ocean Pride within the district were recently leased for $21,000 and $25,000, respectively, with the latter achieving a unit rent of approximately $39 per square foot, marking a recent high. He anticipates that rental prices in the district will continue to rise steadily throughout the summer holiday period.
Conversely, the overall rental performance in New Territories East was slightly dragged down this week as certain estates within the district recorded leasing transactions below average levels. For instance, a mid-to-high-floor two-bedroom unit (Flat C) in Block 1B of GRAND SEASONS, with a saleable area of 453 square feet, was recently leased for $19,300 per month. The saleable unit rent of approximately $43 per square foot is slightly below the 28Hse platform's recent average of $44.
Currently, the supply-demand dynamics in the leasing market remain tight. With the commencement of the summer peak leasing season, incoming professionals and non-local students are accelerating their rental activities. Coupled with the sustained housing demand from local families and a lack of significant increase in available rental inventory, the overall leasing sentiment remains highly active. Rents in select estates are poised to reach new record highs.
Cheung opined that the undersupply of rental listings will continue to provide support for rental prices in the near term, though potential risks warrant attention. He projects that the ERI will fluctuate between 114 and 124 points in the short term, with full-year rental growth estimated at 2% to 4%. Given that current rents have already surpassed 2019 levels, if the inventory shortage persists beyond the peak season, rental prices are expected to remain elevated and may even establish further records.
The above indices reflect market conditions from July 03, 2026, to July 09, 2026.
