For the final week of August, the Eva Property Index (EPI) stood at 120.09 points, edging down by 0.22% week-on-week. This halted the previous week's upward trajectory, although the index has stabilized above the 120-point mark for two consecutive weeks. However, it remains approximately 17.61% below the historical peak of 145.76 points recorded in August 2021. The sub-regional price indices exhibited a mixed performance with two gains and two declines. New Territories East and Hong Kong Island were affected by the mediocre sales performance of first-hand inventory. Coupled with a large number of buyers rushing to enter the market before the price hike of La Mirabelle II, secondary purchasing power in the district was frozen, forcing secondary owners to reduce their asking prices and dragging down property prices in these two regions. Conversely, New Territories West and Kowloon benefited from a rebound in property viewing volumes and robust first-hand sales respectively, stimulating an uptick in secondary property prices.
In the rental market, the Eva Rental Index (ERI) maintained its upward momentum, latest reporting at 121.82 points. It edged up by 0.13% week-on-week, marking a six-week consecutive rise and holding steady above the 121-point level for four consecutive weeks. Although certain housing estates in Kowloon, New Territories West, and Hong Kong Island recorded multiple transactions at lower per-square-foot rents, frontline agents pointed out that various estates in New Territories East, particularly in the Tai Po district, registered high-rent transactions. This single-handedly drove the continued upward trend of overall citywide rents this week.
Looking ahead to the market outlook for the second half of the year, while the US pause in interest rate hikes provides a brief respite for the market, the mainland's tightened policies on capital outflows are expected to continue cooling local property transactions, leading to a slightly softer property market. Regarding the rental sector, with the commencement of the academic year approaching in September, robust demand from mainland students and incoming professionals is expected to drive the rental index to continue testing new highs. The overall market is poised to present a landscape characterized by softening property prices alongside strengthening rents.
Regional Property Prices Show Mixed Results; Declines in New Territories East and Hong Kong Island Pressure the Broader Market
This week, regional property price indices exhibited mixed performance, with two regions recording gains and two recording losses. New Territories East and Hong Kong Island reported declines, falling for the fourth consecutive week and halting a previous upward trend, respectively. Their indices stood at 119.57 and 109.59 points, representing week-on-week drops of 0.94% and 0.73%. Conversely, New Territories West and Kowloon recorded gains, rising for the third consecutive week and ending a four-week losing streak, respectively. Their indices reached 125.76 and 113.1 points, up 1.71% and 1.07% week-on-week.
The decline in New Territories East this week was influenced by the lackluster sales of first-hand inventory and the launch of additional new project units at close-to-market prices, as first-hand new projects captured the market's focus. Taking La Mirabelle series as an example, it recorded 39 transactions this week, seemingly showing a decent performance. However, on August 24, the developer launched an additional 129 units for La Mirabelle II at a discounted average price of $17,165 per square foot, representing an 8.85% premium over the discounted average price of the first price list. Many buyers rushed to enter the market before the price hike, freezing purchasing power in the district's secondary market. This forced secondary owners to reduce their asking prices, thereby dragging down secondary transaction prices. The Pavilia Farm III also recorded only 6 transactions this week, while transactions for other first-hand projects remained muted. Observing the limited market absorption capacity, secondary owners generally widened their room for negotiation, putting downward pressure on property prices in the district.
Property viewing volumes reflected a similar trend. According to data from Hong Kong Property Services, weekend viewing appointments at four major indicator housing estates in New Territories East recorded 160 groups, a week-on-week decrease of 0.62%. This indicates average purchasing desire among prospective buyers, and the reduction in clientele further pressured regional prices.
The situation in Hong Kong Island was similar. The Headland Residences and La Marina 4B recorded 15 and 7 transactions respectively, while the sales of other first-hand inventory remained sluggish. Weekend viewing appointments at two major indicator estates under Hong Kong Property Services recorded 24 groups, dropping 4% week-on-week. Sparse transactions, combined with the subdued purchasing appetite of prospective buyers, prompted secondary homeowners to be more willing to expand their room for negotiation, driving property prices down in the district.
Conversely, robust first-round sales at The Sterling I, along with a significant number of transactions for other first-hand inventory, successfully captured market focus and purchasing power, enabling Kowloon's property prices to halt their decline and rebound this week. Starting August 22, The Sterling I launched a total of 201 units via price lists and tender, ultimately selling 197 units, accounting for 98.01% of the total offered, indicating brisk sales. The developer immediately released price list No. 3, offering an additional 133 units at a discounted average price of $19,212 per square foot, approximately 1.33% higher than the previous batch, with high-floor units in the same stack seeing a maximum price increase of 3.2%. This reflects the developer's strategy of launching additional units at market pace to absorb purchasing power, thereby stimulating the overall property market sentiment across Hong Kong. Additionally, the MIAMI QUAY series, One Victoria Cove series, KT Marina Phase 2, Highwood Phase 2, and The Pavilia Forest series recorded 11, 9, 5, 4, and 4 transactions respectively, demonstrating strong absorption capacity in the district. Weekend viewing appointments at seven major indicator estates under Hong Kong Property Services and Midland Realty recorded 180 and 179 groups respectively, representing week-on-week increases of 5.88% and 5.29%. This indicates that Rui Jing I successfully stimulated buyers' interest in the secondary market, leading homeowners to narrow their room for negotiation and driving property prices upward.
Although first-hand sales in New Territories West were merely average, the district's first-hand inventory is lower than that of the other three regions. Consequently, the impact of first-hand transactions on regional property prices is relatively significant. Coupled with a steady rise in viewing volumes, this collectively drove regional property prices upward. Garden Regency, Ocean Camino Phase 1, and Grand Mayfair III recorded 9, 7, and 3 transactions respectively. Weekend viewing appointments at two major indicator estates under Midland Realty recorded 92 groups, up 1.1% week-on-week. Satisfactory first-hand transactions and an increase in clientele both served as favorable factors for the district's property prices.
Looking ahead to the market outlook, 28Hse Limited Data Researcher Alex Cheung analyzed that the mainland's tightened policies on capital outflows have somewhat affected the sentiment in the local property market, leading to a reduction in transaction volume. Recently, Federal Reserve Chairman Kevin Warsh hinted that if inflation improves, the current inclination is to maintain interest rates unchanged. The rising probability of unchanged interest rates is expected to provide a brief stimulus to the property market, though this is merely a short-term favorable factor. Cheung maintains his previous forecast that the overall property market in the second half of the year will remain stable or edge down slightly, with the EPI fluctuating between 112 and 124 points in the short term.
Rent Index Edges Up 0.13% for Sixth Consecutive Week; New Territories East Single-handedly Supports the Market
Entering late August, the peak leasing season is drawing to a close, and high-per-square-foot rental transactions across various housing estates have become sparser. However, leasing demand in New Territories East remains robust, single-handedly driving the overall Hong Kong rent index upwards. The latest ERI stands at 121.82 points, rising 0.13% week-on-week. This marks a six-week consecutive increase, with the index stabilizing above the 121-point level for four consecutive weeks. It is now 2.77% higher than the peak of 118.54 points recorded in 2019, continuing to hit record highs.
The sub-indices recorded three drops and one rise. New Territories East performed the best this week, reporting 125.91 points. This represents a week-on-week increase of 0.54% and a three-week consecutive rise, acting as the primary driving force supporting the broader market. The Kowloon index reported 124.74 points, down 0.54% week-on-week, marking a two-week consecutive decline. New Territories West reported 138.68 points, down 0.49% week-on-week, ending its three-week winning streak. Hong Kong Island reported 133.49 points, down 0.46% week-on-week, also failing to hold its ground.
The Tai Po district recorded multiple transactions at high per-square-foot rents this week, successfully driving up rental levels in the area. May Chu, Managing Director of Love Property Agency Limited, analyzed that a two-bedroom unit in Uptown Plaza with a saleable area of 489 square feet, which typically leased for between $18,000 and $19,000 prior to the peak season, was recently rented out for $22,000 within less than an hour of being listed, representing an increase ranging from 15.79% to 22.22%. Similar situations of tight supply and elevated per-square-foot rents were also observed in Tai Po Centre and Jade Plaza. This is primarily driven by numerous mainland students coming to Hong Kong for their studies, who favor the district's convenient transportation for commuting to the Chinese University of Hong Kong and the Education University of Hong Kong along the East Rail Line. Taking a one-bedroom unit (Room 06, Mid-floor, Block C) in Jade Plaza as an example, with a saleable area of 269 square feet, a mainland student prepaid a year's rent to lease it for $15,000. This translates to a per-square-foot rent of $56, which is nearly 20% higher than the 90-day average per-square-foot rent of $47 recorded in the 28Hse estate transaction database, thereby keeping rents in the district at a high level.
Rents in New Territories West faced downward pressure this week, primarily due to individual units being leased at lower per-square-foot rates. A four-bedroom sea-view unit (High-Floor, Unit A, Block 2A) in Ocean Supreme, Tsuen Wan, with a saleable area of 1,164 square feet, was recently leased for $51,000. The saleable rent per square foot was only $44, lower than the 90-day average of $47 on 28Hse. The gradual emergence of similar below-market leasing cases has put pressure on the New Territories West rent index.
A similar situation was also observed on Hong Kong Island. A three-bedroom unit (Mid-Floor, Unit H, Block 3) at BLUE COAST II, with a saleable area of 718 square feet, was leased this week for $41,000 per month. The rent per square foot was $57, slightly below the platform's concurrent average of $58. These lower-rate transactions weakened overall rental support, becoming the main factor dragging down the Hong Kong Island index.
Approaching the start of the academic year in September, demand for rental properties from incoming Mainland students and professionals is expected to remain keen, which will continue to stimulate the rent index to test new highs. Cheung estimates that the short-term supply shortage will persist for some time. The ERI is expected to fluctuate between 114 and 124 points in the short term, with full-year rents projected to rise by approximately 2% to 4%.
The above indices reflect market conditions from August 21, 2026, to August 27, 2026.
