Eva Property Price Index Rises 1.62% Weekly – Market Anticipates Post-Budget Price Breakthrough, Buyers Accelerate Purchases

The Eva Property Index is currently at 108.65 points, reflecting a weekly increase of 1.62%, signaling a gradual market recovery. The market sentiment has notably improved, mainly driven by the launch of several new residential projects, including Phase 2 of Belgravia Place in Cheung Sha Wan, South Kowloon, and YOHO WEST PARKSIDE in Tin Shui Wai. While developers have shifted away from deep price cuts, they continue to set competitive pricing, boosting confidence in the secondary market. Some homeowners have even started to raise their asking prices, further stimulating market transactions.

Additionally, strong stock market performance has enhanced buyers' purchasing power, strengthening the market’s resilience. At the same time, the government's relaxation of the HK$100 stamp duty threshold to properties priced at HK$4 million or below has reduced the cost of homeownership for smaller units. This policy has encouraged more potential buyers who were previously on the sidelines to enter the market more quickly, fearing that property prices may rise further as the market recovers.

Regional Price Index: Three Districts Up, One Down
The regional property price index showed a “three districts up, one down” trend this week:

New Territories East recorded the largest increase, rising 3.28% weekly to 112.15 points, reflecting strong upward momentum in property prices.
Hong Kong Island also performed well, climbing 2.72% to 100.69 points, indicating sustained demand for prime locations.
New Territories West remained stable, with only a mild increase of 0.08% to 113.58 points, suggesting a relatively balanced market.
However, Kowloon was the only district to record a decline, with the index dropping 3.27% to 98.72 points. This downturn is likely due to the launch of two major new residential projects in the area, which diverted demand away from the secondary market, exerting short-term downward pressure on property prices. As sales of these new projects stabilize, the secondary market in Kowloon may gradually recover, though it remains crucial to monitor how new launches impact the district's price trends in the short term.

Rental Market Stabilizing: Weekly Increase of 0.64%
The Eva Rental Index rose slightly by 0.64% this week, reaching 115.66 points. In the short term, rental prices remain within a narrow fluctuation range. Although the traditional seasonal slowdown has caused a slight dip in rental transactions, the strong demand for housing has helped stabilize rental prices after a mild adjustment.

Similar to property prices, rental index trends varied by region:

Hong Kong Island saw the most significant increase, rising 3.06% to 125.29 points.
New Territories East followed with a 1.46% rise to 116.64 points.
New Territories West recorded a slight increase of 0.15% to 127.50 points.
Kowloon was the only district to decline, with the rental index falling 1.42% to 115.80 points.
Looking ahead, rental prices are expected to hover between 113 and 115 points in the coming weeks.

This week's index reflects market conditions from February 21, 2025, to February 27, 2025.