A general view shows a government residential building complex in
A general view shows a government residential building complex in the Kowloon district of Hong Kong. ANTHONY WALLACE/Getty Images

Hong Kong's benchmark gauge of secondhand home prices touched its highest level in almost three years this week, but the rally split sharply by district — surging on Hong Kong Island while barely moving in the New Territories' western towns.

The Centa-City Leading Index, compiled weekly by Centaline Property Agency from its own group's transaction records, hit 161.54 on Friday, up 0.38% from the previous week and 1.01% over the past month. The reading tracks deals struck between Aug. 17 and Aug. 23 across roughly 100 of the city's largest private housing estates.

Hong Kong Island prices in the index's district breakdown jumped 1.51% in a single week to 163.77, the steepest one-week move of the four regions Centaline tracks. New Territories West, home to towns including Tuen Mun and Yuen Long, edged up just 0.21% to 144.09 and was almost flat for the month. Kowloon rose 0.3% to 159.51, while New Territories East climbed 3.51% over the past month, to 179.96, though it barely moved this week.

The divergence extends to unit size. Centaline's index for large flats, generally luxury units, rose 2.53% over the past month to 162.93 — more than triple the 0.72% monthly gain for small and medium-sized homes, the segment where most first-time buyers compete.

The CCL is a leading indicator built on provisional contract prices, not completed land registrations, and it has been climbing since May. A slower-moving official measure told a different story this week: Rating and Valuation Department data updated Aug. 27 showed the government's private home price index fell in July, ending a run of gains that had lasted more than a year.

By Centaline's own reckoning, the CCL was already at its highest level since around September 2023 — nearly three years — when it stood lower, at 161.13, two weeks ago. This week's rise leaves it further above that mark. Centaline's next CCL print, along with its quarterly price forecast, is due next Friday.