2025-08-29 Squarefoot Editor
The property market sentiment is warming up. The Eva Property Index reported at 108.97 points. Although still below its peak, it has risen more than 2.28% this year, with Kowloon showing the most significant increase. However, high interbank rates may suppress transaction volumes.
On rentals, the index recorded 116.72 points, rising for the third consecutive week and stabilizing at a high level, driven by strong demand in Hong Kong Island and New Territories East. Yet, as the summer rental season comes to an end, the index may hover between 115 and 117 points going forward.
Market Sentiment Recovering: Price Index at 108.97 Points
The Eva Property Index most recently reported 108.97 points, up 0.13% week-on-week. Although still more than 33% below the historic high in 2021, it has accumulated over 2.28% growth so far this year, reflecting that the index may be bottoming out.
The market generally expects the U.S. Federal Reserve to cut interest rates by 0.25% in its September meeting. Banks may then lower mortgage rates accordingly, reducing the repayment burden for homeowners, which could push the index back above 110 points.
However, in the short term, funding costs remain high. Last week, Hong Kong Interbank Offered Rates (HIBOR) rose across the board, with the one-month rate—closely tied to mortgage loans—climbing for six consecutive working days. This means most mortgage holders are already paying the capped rate of 3.5%.
With borrowing costs rising, potential buyers may hesitate due to affordability concerns. As a result, both primary and secondary market transaction volumes could remain under pressure in the short term. Property prices may fluctuate between expectations of interest rate cuts and the drag from high interbank rates.
District Performance: “Two Up, Two Down”; Kowloon Rises Over 3%
The latest regional property price trends showed a “two up, two down” pattern. Kowloon stood out, with its index at 108.15 points, rising 3.08% week-on-week—the largest gain this month.
This was mainly because no major new developments were launched last weekend, so purchasing power flowed back into the secondary market, boosting Kowloon transactions.
Hong Kong Island recorded 97.09 points, up slightly by 0.08% week-on-week, marking three consecutive weeks of gains. Due to the scarcity of properties in the district, some buyers who had been waiting on the sidelines decided to enter the market, supporting the upward trend.
In contrast, New Territories East fell 0.4% to 108 points, as “The Coastline” in LOHAS Park sold 23 more units last weekend, absorbing much of the local demand and putting pressure on the secondary market.
Meanwhile, New Territories West dipped 0.25% to 114.05 points, likely affected by the ongoing low-priced sales promotions at “Upper RiverBank Phase 3” in Tai Po, which diverted buyers to the primary market.
Eva Rental Index at 116.72 Points, Stabilizing at Year’s High
Boosted by the summer rental season, the Eva Rental Index has stabilized at the 116-point level for three consecutive weeks, most recently at 116.72 points, up another 0.27% week-on-week.
Regional rental performance also showed a “two up, two down” trend. Hong Kong Island rose the most, up 1.36% to 122.56 points. New Territories East also climbed for the third consecutive week, up 1.17% to 122.1 points, reflecting strong and growing leasing demand in the area.
On the other hand, New Territories West fell 0.83% to 134.46 points, while Kowloon slipped 0.31% to 118.75 points. However, Kowloon’s index has hovered around 118 points for six straight weeks, showing that the rental market remains relatively active.
Looking ahead, as the summer season ends, the rental rush from students and families may temporarily ease. Rental trends are expected to soften gradually, but supported by demand, rent levels should remain high, with the index likely to fluctuate between 115 and 117 points over the next two months.
This week's index reflects the market conditions from August 15, 2025 to August 21, 2025.
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| Property Type | Price | Ads Period |
|---|---|---|
| For Sale Property | ||
Normal Listing Typical One | HKD:1000 (or Hsemoney:1000) | Valid:90 days |
Golden Top Listing Higher position than Top listing 2-3times better performance | HKD:3000 (or Hsemoney:3000) | Valid:60 days |
| Rental Property | ||
Normal Listing Typical One | HKD:1000 (or Hsemoney:1000) | Valid:80 days |
Golden Top Listing Higher position than Top listing 2-3times better performance | HKD:3000 (or Hsemoney:3000) | Valid:60 days |