Property prices halted their decline and edged up slightly this week, while the rental market maintained its robust momentum, hitting a new record high. The Eva Property Index (EPI) ended last week's downward trend, currently standing at 120.1 points. This represents a marginal week-on-week increase of 0.01%, though it remains approximately 17.6% below the historical peak recorded in August 2021. Conversely, driven by the back-to-school effect, the Eva Rental Index (ERI) rose by 0.25% week-on-week to 122.13 points. Marking a seven-week consecutive rise, the index breached the 122-point threshold for the first time, continuing to set new historical highs.
Across the four major regions, property prices recorded three declines and one advance. The New Territories East index stood at 119.69 points, edging up 0.1% week-on-week, making it the sole region to register an increase. Coupled with the shift in the focus of secondary market transactions toward the New Territories—which commands a higher index level—this drove the overall market up by a marginal 0.01%. The remaining three regions were impacted by the robust sales of large-scale new developments. Notably, The Sterling I accumulated over 58,000 subscription registrations. Frontline agents noted that the project has significantly siphoned off purchasing power from the secondary market, compelling homeowners in districts such as Tung Chung to substantially reduce their asking prices to facilitate sales. The secondary market is only expected to regain momentum in late September when unsuccessful prospective buyers return. The dilution of the buyer pool has consequently left property prices in New Territories West, Kowloon, and Hong Kong Island under pressure. On the rental front, rents across all four major regions trended upward, with multiple districts recording leasing transactions at per-square-foot rates above average levels. Notably, New Territories West led the growth with a week-on-week rental increase of 1.02%.
Looking ahead, mainland capital control measures continue to exert pressure on property transaction volumes. The future trajectory of the sales market will hinge on the housing policies outlined in the upcoming Policy Address on September 16. In the short term, the EPI is projected to fluctuate between 112 and 124 points. Regarding the rental market, buoyed by robust overall leasing demand, full-year rents are expected to climb by 3% to 8%. The ERI is anticipated to hover at a high level between 114 and 126 points in the near term.
Three out of Four Districts Record Price Declines; New Territories East Single-handedly Supports the Overall Market
The regional property price indices recorded three declines and one increase this week. New Territories West and Kowloon ended their three-week winning streak and last week's upward trend, reporting 124.1 points and 112.11 points, down 1.32% and 0.87% week-on-week respectively. Hong Kong Island fell for two consecutive weeks to 109.34 points, representing a slight drop of 0.22% week-on-week. Conversely, New Territories East performed well, reaching 119.69 points with a marginal week-on-week increase of 0.1%, making it the sole region to register an advance this week. Despite price declines across three regions, secondary market transactions in Kowloon contracted significantly this week, causing the transaction proportion to tilt toward the New Territories, which commands a higher index level. Driven by this structural shift in transactions, the overall Hong Kong property price index still managed to record a marginal increase of 0.01%.
Property prices in New Territories West came under pressure, primarily due to the new development The Sterling I capturing market focus and diverting purchasing power from the secondary market. Carlos Lam, Founder and CEO of Centerland Property Limited, noted that The Sterling I accumulated over 58,000 subscriptions, reclaiming the title of the most sought-after new project with an oversubscription rate of over 573 times. With significant purchasing power drawn away from the district, the secondary market is expected to regain momentum only when unsuccessful prospective buyers return in late September. To maintain competitiveness, secondary market owners generally widened their negotiation margins, putting downward pressure on prices this week.
Lam added that some owners in the Tung Chung area have made noticeable concessions recently, leading to successive price-cut transactions and indicating a downward trend in district property prices. For instance, a two-bedroom unit in Block 6, Middle Floor, Flat E of Caribbean Coast, with a saleable area of 548 square feet, was recently sold for HK$5.66 million. Similar units were previously asking for HK$6.0 million to HK$6.1 million, representing a 5% to 8% discount from the initial asking prices. The softening of asking prices has dragged down property values in Tung Chung and the broader New Territories West region.
Property prices in the Kowloon district experienced a downward trend, primarily driven by the robust sales performance of the remaining primary market inventory. The Sterling I recorded a total of 166 transactions, with all 133 units on the price list from its second round of sales completely sold out. Meanwhile, One Liberty, Montego Bay, One Victoria Cove series, Baker Circle Dover, and Grand Homm recorded 23, 6, 6, 5, and 4 transactions respectively, which subsequently softened the asking price stance of secondary market owners within the district.
On August 30 and September 1, The Sterling I and One Victoria Cove Phase 4 launched additional units, with the former implementing a price increase and the latter maintaining its original pricing. The discounted average prices per square foot stood at $19,661 and $20,982 respectively, representing a maximum price hike of 10.21% and 1.23% for units sharing the same layout (same column). Furthermore, Chester II launched its inaugural batch of 53 units on September 3 at a discounted average price of $21,388 per square foot, commanding a premium of up to nearly 15% over other new developments in the same district. The entry price for its one-bedroom units was also 4.97% higher than that of the secondary units in the affiliated Baker Circle Dover. This indicates that primary developers are generally adopting aggressive pricing strategies and remain optimistic about the future market outlook, suggesting that the secondary property market may continue to face pressure in the short term.
On Hong Kong Island, sales of remaining primary stock were moderate, with transactions primarily concentrated in The Headland Residences, Jardini, and DEEP WATER SOUTH PHASE 6A. Although no brand-new projects were launched in the district, the steady absorption of remaining stock encouraged secondary owners to widen their negotiation margins, putting short-term pressure on regional prices.
Property prices in New Territories East rebounded, largely due to generally sparse primary market transactions in the area. Apart from La Mirabelle series, which recorded 53 transactions, sales in other primary projects remained quiet. Consequently, secondary owners adopted a firmer stance on asking prices, supporting an upward trend and making it the only district to record an increase this week.
The increase in property viewing volumes, coupled with the robust purchasing intentions of prospective buyers, has contributed to the upward momentum of property prices within the district. According to weekend viewing appointment data for benchmark housing estates tracked by major real estate agencies, Hong Kong Property Services and Midland Realty recorded 163 and 121 groups respectively, representing week-on-week increases of 1.88% and 0.83%. This indicates that while The Sterling I has successfully absorbed a substantial amount of purchasing power, a portion of out-of-district buyers and prospective purchasers who missed out on the primary market have pivoted to the secondary market in areas such as New Territories East to source suitable units. The relatively stable pool of secondary market buyers has prompted landlords in the district to narrow their room for negotiation, thereby driving prices upward.
28Hse Limited Data Researcher Alex Cheung projected that the EPI will fluctuate between 112 and 124 points in the short term. The recent tightening of capital outflows from mainland China has dampened the trading atmosphere in the local property market, deterring some mainland buyers who originally intended to purchase properties in Hong Kong due to capital transfer difficulties. However, the current stable interest rate environment and clear market direction are conducive to attracting prospective buyers and investors. The short-term market outlook will largely depend on the housing policies announced in the upcoming Policy Address on September 16.
Rental Index Rises 0.25%, Hitting Record High for Seven Consecutive Weeks
The latest ERI stands at 122.13 points, up 0.25% week-on-week. Having risen for seven consecutive weeks, the index breached the 122-point mark for the first time. It is now 3.03% higher than the 2019 peak of 118.54 points, setting a new historical record and reflecting strong market absorption. Entering early September, the leasing market is being driven by the back-to-school effect, with sustained robust absorption. As tertiary institutions gradually commence classes, many mainland students have secured their accommodation in advance, increasing the demand for rental properties and subsequently driving up rental levels.
The rental indices for the four major regions rose across the board this week. New Territories West rebounded from its decline, reporting at 140.1 points with a week-on-week increase of 1.02%, the highest growth among all regions. New Territories East reported at 126.89 points, up 0.78% week-on-week, marking a four-week consecutive rise. The Kowloon region reported at 125.03 points, edging up 0.24% week-on-week and ending a two-week decline. Hong Kong Island reported at 133.66 points, edging up 0.13% week-on-week, successfully reversing last week's downward trend.
Multiple transactions in New Territories West recorded unit rents outperforming their respective estates' averages. A two-bedroom unit (Flat G, mid-floor, Block 9) at Sun Tuen Mun Centre, with a saleable area of 455 sq ft, was leased at HK$13,300 per month. The tenant paid four months' rent in a lump sum, bringing the unit rent to HK$29.2 per sq ft, which is over 12% higher than the estate's 90-day average of HK$26 per sq ft on 28Hse. A two-bedroom unit (Flat B, mid-floor) at Lin Fat Building in Yuen Long, with a saleable area of 301 sq ft, was leased at HK$11,200 per month, translating to a unit rent of approximately HK$37.2 per sq ft, higher than the platform’s concurrent average of HK$36 per sq ft. The continuous recording of similar high-rent transactions in the district has driven overall rents steadily upwards.
A similar situation was observed in New Territories East, where mainland students became the primary driving force. An open-plan unit (Flat B3, low-floor, Block 5) at St. Martin in Pak Shek Kok, Tai Po, with a saleable area of 284 sq ft, was leased by a mainland student for HK$14,000 per month. The unit rent reached HK$49.3 per sq ft, about 12% higher than the 90-day average of HK$44 per sq ft on 28Hse. In the same district, a two-bedroom unit (Flat C, high-floor, Block 12, Phase 6) at Tai Po Centre was also leased by a mainland student for HK$17,000 per month. The unit rent stood at HK$43.5 per sq ft, slightly above the platform’s concurrent average of HK$43 per sq ft.
Market absorption in the Kowloon region remained solid. A two-bedroom unit (Flat 06, mid-floor, Block A) at Tak Bo Garden, with a saleable area of approximately 282 sq ft, was leased by a student tenant within the district at HK$13,800 per month without negotiation. The unit rent was approximately HK$48.9 per sq ft, slightly higher than the average of HK$46 per sq ft, driving up rental levels in the area.
Individual estates on Hong Kong Island also recorded ideal rental values. A two-bedroom unit (Flat D, mid-floor) at The Splendid, with a saleable area of 470 sq ft, was leased for HK$25,000 per month. The unit rent was approximately HK$53 per sq ft, higher than the market average of HK$51 per sq ft. Such transactions have supported the rental trend in the district.
The leasing demand from non-local students in early September is expected to continue for some time. With ample market absorption capacity, rents are poised to maintain an upward trajectory in the short term. Cheung has revised his previous forecast upwards, estimating that the ERI will fluctuate between 114 and 126 points in the near term. Full-year rents are projected to increase by 3% to 8%, continuously breaking new highs or hovering at elevated levels.
The above indices reflect market conditions from August 28, 2026, to September 3, 2026.
