Hong Kong Home Prices Slip 0.84% as Weak Sales Pressure All Districts; Rents Rise for Third Week

Hong Kong's Home Price Index Falls 0.84% as Weak Sales Drag All Districts

Hong Kong's housing market split in opposite directions in early August. The 28Hse-tracked home price index fell 0.84% week on week to 120.79 points, reversing the previous week's gain and slipping below the 121-point level. It remains about 17.13% below the August 2021 record of 145.76 points. All four major districts were under pressure: Kowloon and New Territories West fell for a second straight week by 1.5% and 0.7% respectively, while Hong Kong Island and New Territories East ended earlier gains with declines of 0.45% and 0.08%.

The main challenge is weak first-hand demand. Land Registry data recorded only 128 first-hand residential transactions during the week, down more than 60% week on week. A third-round sale at a New Territories West project sold 42 of 114 units, or under 40%. Kowloon's unsold first-hand stock reached 9,018 units, nearly half the territory-wide total, helping push secondary sellers to widen their asking-price discounts.

Rents performed better. The rent index rose 0.17% to 121.13 points, its third consecutive weekly increase and a new level above 121. Hong Kong Island led the gains with a 2.29% rise, while New Territories West ended a three-week decline. A 28Hse researcher quoted in the report expects home prices to fluctuate between 112 and 124 points in the near term while rents continue to test higher levels.

What the Kowloon Unsold Stock and Student Rent Deals Tell Us

Kowloon's 9,018-unit unsold stock is setting local prices

Kowloon's 1.5% weekly decline, the largest among districts, is a supply story. The 9,018 unsold first-hand units represent nearly half of the city's total, while the week's first-hand deals were mostly small groups: 8 sales at one major Kowloon project, 5 at another and 4 each at three further projects. With weekend viewing bookings falling by 0.5% to 2.2% across major estates, buyers know they have time. Sellers in the secondary market are responding with wider discounts.

Student rentals are lifting the index well above average rents

The rental index's strength is concentrated and seasonal. In New Territories West, two Lingnan University students rented a two-bedroom flat for HK$13,800 a month and paid the entire lease term upfront; another Lingnan student paid HK$15,500 a month for a two-bedroom unit with one year prepaid. Both deals came in above the platform's 90-day average for their buildings. In Hong Kong Island, a 195-square-foot studio was pre-leased for HK$20,900, or HK$107 per square foot, more than 30% above the 90-day average. These outliers are driven by the start of the academic year and mainland student demand, not by a broad household rent surge.

Developers are still testing higher prices despite weak volumes

The new-launch pipeline shows that developers are not retreating. A project at 33 Clear Water Bay has been named and had its sales brochure uploaded, a southwest Kowloon project is preparing to sell, and another project added 75 units at an average of HK$25,282 per saleable square foot, with some same-column units priced 8% to 9% higher. The question is whether this confidence holds when the same unsold stock is already forcing secondary sellers to cut prices.

Pricing Moves for Sellers, Buyers and Landlords in the Coming Weeks

• For Kowloon sellers: With 9,018 unsold first-hand units and weekend viewings down 0.5% to 2.2%, price realistically from recent comparable transactions, not the 121-point index level, because buyers are already filtering for discounted stock.
• For buyers: The report expects the price index to trade between 112 and 124 points, and August launches at 33 Clear Water Bay and in southwest Kowloon will add supply; use those launch dates to negotiate secondary purchases.
• For landlords near university campuses: The rent index is at 121.13 and rising for a third week, with full-term prepayment deals from mainland students; list before the intake window closes and benchmark against the platform's 90-day average rather than single outlier deals such as HK$107 per square foot on Hong Kong Island.
• For tenants: Rents are still rising overall, but district-level data varies: New Territories East fell 0.65% and some units leased below market, including a two-bedroom flat at about 4.5% under the 90-day average, so compare local benchmarks before renewing.