The latest Eva Property Index (EPI) stands at 121.02 points, edging down by 0.06% week-on-week and marking a three-week consecutive decline. However, the index has stabilized at the 121-point for four consecutive weeks, representing a retreat of approximately 16.97% from its peak of 145.76 points in August 2021.
The trajectory of secondary market property prices this week was primarily driven by primary market sales performance. Primary market transactions in Kowloon, Hong Kong Island, and New Territories West recorded solid performance. Notably, the new Kam Tin project, Garden Regency, emerged as the market focus, absorbing significant purchasing power. In contrast, the sales performance of remaining primary market inventory in New Territories East lagged behind the other three districts. This exerted downward pressure on the district's property prices and subsequently dragged down the overall broader market.
In the rental market, prices halted their decline and rebounded this week. The latest Eva Rental Index (ERI) reported at 120.91 points, rising by 0.47% week-on-week and stabilizing at the 120-point for four consecutive weeks. This represents an increase of approximately 27% compared to the previous peak of 118.54 points recorded in August 2019. It is anticipated that the index is poised to breach the 121-point mark in the short term and continue its upward trajectory to test new highs.
Regional rental indices recorded three increases and one decline, with the performance of each district largely dependent on the proportion of high-value rental transactions. Notably, New Territories East registered a week-on-week increase of 0.91%, marking the highest growth among all districts. Benchmark estates within the district, such as The Pavilia Farm, leveraged their transportation advantages to achieve sustained growth in per-square-foot rents, serving as the primary driver for the district's rental surge.
Looking ahead, the rental market currently lacks any apparent bearish factors. It is expected that the downside potential for rents will be limited, and the market is poised to maintain its upward momentum to test new highs in the near term.
Property Prices Up in Three Districts and Down in One; New Territories East Drags Down Overall Market
The latest regional property price trends show increases in three districts and a decline in one. Kowloon and Hong Kong Island successfully rebounded, with their indices reporting at 118.82 and 110.38 points, representing week-on-week increases of 1.64% and 1.11% respectively. New Territories West also trended upward, edging up by 0.02% to 125.21 points. However, New Territories East faced downward pressure against the market trend, falling by 0.15% week-on-week to 118.6 points. It was the only district to record a decline this week, becoming the primary factor dragging down overall Hong Kong property prices slightly.
The downward pressure on New Territories East property prices was primarily driven by the lackluster sales performance of remaining primary market inventory in the district. This week, primary transactions in the area were mainly driven by La Mirabelle I, the Centra Horizon series, and Silicon Hill. May Chu, Managing Director of Love Property Agency Limited, pointed out that since the government confirmed the construction of the Pak Shek Kok MTR station and clarified nearby land uses, many Silicon Hill two-bedroom owners and developers have opted to withhold their properties from the market, refusing to sell below market value. Consequently, the district's housing supply has shrunk, and with restricted transaction volumes, property prices lack upward momentum.
Looking ahead to the Pak Shek Kok market, however, the bargaining room for owners in estates such as Solaria and Centra Horizon II has narrowed, with some even raising their asking prices. Coupled with bank valuations aligning closely with recent transaction prices, the industry remains optimistic about the district's long-term development. Furthermore, data from Hong Kong Property Services and Midland Realty show that weekend viewing appointments at benchmark estates in New Territories East fell by approximately 1.5% to 4% week-on-week. This reflects a temporary decline in prospective buyers' property-hunting desire due to supply shortages and major sporting events, further suppressing short-term price performance.
In Kowloon, property prices trended positively, largely benefiting from the strong sales of remaining primary units. Phase 2 of Cullinan Sky, Grand Homm, and the Pavilia Forest series recorded 20, 6, and 4 transactions respectively, prompting secondary market owners in the district to adopt firmer asking prices. Although MIAMI QUAY I in Kai Tak released an additional 79 units on July 22 with an average discounted per-square-foot price approximately 1.33% lower than in April last year, a pricing strategy by the developer to accelerate inventory clearance, this did not hinder the overall performance of Kowloon property prices this week. The project is scheduled to launch 40 units for sale on July 26, and the subsequent impact of its sales on secondary property prices in the district remains to be seen.
Primary market inventory transactions on Hong Kong Island were equally robust, with deals recorded at La Montagne Phase 4B, the Headland Residences, and DEEP WATER SOUTH Phase 6A. Strong primary sales have bolstered secondary owners' confidence, with some raising their asking prices, thereby supporting an upward price trajectory and reversing the previous decline. The thriving primary market in the district has subsequently benefited the secondary market, driving property prices higher. This stands in stark contrast to the sluggish trading in New Territories East caused by a shortage of supply, demonstrating that capital flows directly dictate regional property price performance.
Market focus in New Territories West centered on Garden Regency. The project sold 139 units during its first round of sales in mid-July, absorbing significant market purchasing power. In response, the developer subsequently released additional units twice at original or slightly increased prices, keeping the per-square-foot price increment for similar units within 0.5%. The developer's strategy of releasing additional units at stable prices to ensure strong sales reflects confidence in the project and helps drive steady upward momentum in the district's property prices.
Regarding the overall Hong Kong property price trend this week, Chu analyzed that recent mainland restrictions on capital outflows have indeed affected the pace of mainland buyers purchasing properties in Hong Kong. This has led many prospective buyers to shift from buying to renting, adopting a wait-and-see approach towards the property market.
Looking ahead, various talent admission schemes are injecting potential purchasing power into the Hong Kong property market, providing a degree of support. However, with abundant primary market inventory currently available, developers are mostly promoting sales at discounted prices, inevitably putting pressure on secondary market prices. Coupled with unfavorable factors such as uncertain interest rate trends and capital flow restrictions, hidden concerns remain in the property 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, while the overall property market performance in the second half of the year will trend towards stability, or even experience a slight softening.
Rental Index Rebounds by 0.47%, Steadily Approaching 121 Points
After a slight softening last week, the ERI reported at 120.91 points this week, representing a week-on-week increase of 0.47% and halting its previous decline. The index has remained firmly above the 120-point level for four consecutive weeks and is currently about 2% higher than the historical second-highest peak of 118.54 points recorded in August 2019. Coinciding with the traditional summer peak season for leasing, it is anticipated that the per-square-foot rents of multiple housing estates will repeatedly hit new highs, driving the index steadily upward.
The performance across various districts was generally positive this week, with three regions recording gains and one experiencing a decline. New Territories East led the growth, reporting at 124.58 points with a week-on-week increase of 0.91%, marking a two-week consecutive rise. Kowloon followed closely at 125.46 points, up 0.5% week-on-week, ending last week's downward trend. Hong Kong Island reported at 129.15 points, edging up by 0.14% week-on-week, similarly reversing its decline. However, New Territories West faced downward pressure against the broader market trend, reporting at 136.6 points with a slight week-on-week drop of 0.18%, marking a two-week consecutive decline.
Regarding the rental increases in New Territories East, Kowloon, and Hong Kong Island, analysts point out that during the summer leasing peak season, housing supply within these districts is tight and falls short of demand. Many tenants are willing to lease at premium prices, pushing up the per-square-foot rents of housing estates. This phenomenon is expected to persist in the short term.
Transactions in New Territories East were active. A high-floor one-bedroom unit (Unit E) in Tower 8A of the Pavilia Farm, with a saleable area of 310 square feet, was leased by a Mainland student this week for $25,000, reaching a high of $81 per square foot. Meanwhile, a mid-floor two-bedroom unit (Unit E) in Tower 7, Phase 1 of Park Central, with a saleable area of 384 square feet, was leased for $22,000, or approximately $57 per square foot. The per-square-foot rents of these two transactions were approximately 32% higher than the average rents of $61 and $43 recorded on the 28Hse platform over the past 90 days, respectively. Such premium transactions are driving a steady upward trend in the district's rental levels.
Chu added that following the enthusiastic response to the recent resale of the Pavilia Farm III, the handover of units is currently underway. Generally, listings are leased out within one to two weeks. Prior to the handover of Phase III, rental listings in other phases of the estate were often absorbed within just one to three days. Tenants are predominantly families accompanying students and Mainland students, who favor the estate's railway advantages. The highly convenient commute to traditional elite school networks in Kowloon Tong and Ho Man Tin, as well as major tertiary institutions in New Territories East and Kowloon, is beneficial for their children's education. This robust demand has further propelled rental prices in the district.
Market conditions in Kowloon were equally positive. A mid-floor studio unit (Unit C) at BAKER CIRCLE‧GREENWICH in Hung Hom, with a saleable area of 215 square feet, was on the market for less than half a day before being leased to a Mainland student from the Hong Kong Polytechnic University for $15,500 per month, with a one-year rent paid upfront. The rent translates to $72.1 per square foot. A high-floor two-bedroom unit (Unit 8) in Block A of Telford Gardens in Kowloon Bay, with a saleable area of 556 square feet, was also leased to an out-of-district tenant for $21,700, or approximately $39 per square foot. According to 28Hse data, these figures represent premiums of approximately 3% and 8.33% over the average per-square-foot rents of $70 and $36 during the same period, respectively.
The Hong Kong Island market remained stable. A low-floor three-bedroom, one-ensuite unit (Unit G) in Choi Tien Mansion, Taikoo Shing, with a saleable area of approximately 717 square feet, was leased this week for a monthly rent of $36,000, or approximately $50 per square foot. This is 4.17% higher than the platform's average per-square-foot rent of $48 for the same period. Furthermore, a high-floor three-bedroom, one-ensuite unit (Unit 1) in Block K of Beverly Hill in Happy Valley, with a saleable area of approximately 1,083 square feet, was leased to an out-of-district tenant for $65,000, or approximately $60 per square foot, representing an 11.11% premium over the platform's average of $54 for the same period. The rents of these two transactions were both higher than recent market averages, reflecting support from actual housing demand for Hong Kong Island rentals.
Conversely, rents in New Territories West bucked the broader market trend and came under pressure this week, primarily driven by certain units being leased at below-market rates. Notably, a mid-floor two-bedroom unit (Unit G) in Tower 1 of Miami Beach Towers in Tuen Mun, with a saleable area of 398 square feet, was leased for $10,800, or approximately $27.1 per square foot, slightly below the 28Hse 90-day average of $30 per square foot.
The summer holiday has traditionally been a peak season for leasing, and rental transactions in Hong Kong remained active this week with robust demand. As the new academic year approaches, many students coming to Hong Kong for their studies are busy seeking accommodation. Coupled with various talent schemes attracting professionals to develop their careers in Hong Kong, rental inventories across districts are being rapidly absorbed, driving a continuous upward trend in rents. Consequently, some tenants may shift from renting to buying. Looking ahead, Cheung maintains his previous forecast, estimating that the ERI will fluctuate between 114 and 124 points in the short term, with an anticipated full-year rental growth of approximately 2% to 4%.
The above indices reflect market conditions from July 17, 2026, to July 23, 2026.
