Hong Kong Tuen Mun Real Estate Market Analysis Report

First Half of 2026

1. Overview of Tuen Mun

Tuen Mun is located in the northwestern New Territories of Hong Kong. It covers approximately 85 square kilometres and has a population of around 530,000. It is one of Hong Kong’s established new towns and is included within the development area of the Northern Metropolis.

Population and Demand Fundamentals

Approximately 70% of residents in the district live in public housing.

The main target groups for private residential properties are:

• Local Hong Kong first-time homebuyers

• Airport employees

• Cross-border workers

Expatriate families tend to prefer low-density, sea-view properties in the Gold Coast area.

Primary school networks 70 and 71, together with sufficient secondary school resources in the district, provide strong support for owner-occupier demand.

2. Latest Development Plans for Tuen Mun

2.1 Major Infrastructure Plans

1) Tuen Mun South Extension

(Extension of the Tuen Ma Line to Tuen Mun Pier)

Progress: Detailed planning is currently underway, with construction targeted to commence in 2027.

Once completed, the extension will connect Tuen Mun town centre with the southern coastal area, benefiting residential properties around So Kwun Wat and Tuen Mun Pier.

It will significantly improve the transport connectivity of southern Tuen Mun and is expected to be the most important catalyst for the local property market.

2) Tuen Mun Bypass

(Tunnel Road)

The project is currently at the investigation and study stage.

It will connect the Tuen Mun–Chek Lap Kok Link with Yuen Long Highway, divert traffic away from Tuen Mun Road and address the district’s long-standing traffic congestion.

In the longer term, the project may unlock additional land value along the route.

2.2 Key Land Development Focus: Lung Kwu Tan & Tuen Mun West “Smart and Green Industrial Port”

Total land area: 301 hectares, including 190 hectares of reclaimed land.

The area is planned primarily for industrial use, with residential development excluded.

Key industries

• Green and new energy

• Advanced construction

• Circular economy

• Modern logistics

• Inland river terminal

The development is expected to create approximately 35,000 jobs, with the first batch of land expected to be released in 2029.

Key Impact

Tuen Mun West is not expected to see a significant increase in residential supply. However, the development will bring additional industrial employment and population into the area.

This should benefit:

• Residential rental demand in Tuen Mun town centre

• Local retail and commercial consumption

It is not expected to create a new large-scale residential district in western Tuen Mun.

2.3 Other Medium- to Long-Term Development Plans

1. The Hung Shui Kiu / Ha Tsuen New Development Area to the north will continue to be developed, creating additional employment opportunities and strengthening the connection between Tuen Mun and the wider western New Territories living circle.

2. The government continues to upgrade facilities in several older communities in Tuen Mun and improve public amenities in the town centre.

3. There are currently no plans for large-scale new private residential land releases in the short term. New residential projects over the next few years are expected to mainly comprise projects developed under existing land leases.

Planning Summary

Tuen Mun’s future development can broadly be described as:

“Residential in the east, industrial in the west.”

Residential supply is expected to remain limited, while future value appreciation will depend heavily on the implementation progress of the Tuen Mun South Extension.

3. Residential Property Market Analysis

January–June 2026

In the first half of 2026, Hong Kong’s overall property market experienced price growth in core districts, while more remote areas of the New Territories showed structural divergence.

Tuen Mun represents a typical market characterised by strong owner-occupier demand and cautious investment sentiment.

3.1 Secondary Residential Market

Price Levels

• Railway-connected middle-class estates in the town centre
  (The Vineyard, Chelsea Court): HK$11,500–16,000 per sq ft

• Traditional private estates in northern Tuen Mun
  (Hanford Garden, Greenery Garden): HK$7,000–10,000 per sq ft

• Gold Coast and So Kwun Wat sea-view luxury properties:
  HK$13,000–22,000 per sq ft

• Older HOS flats and light private housing
  (such as Siu Shan Court): HK$6,300–8,000 per sq ft

Market Characteristics

1. Gradual recovery in transaction volume

Transaction volume is gradually recovering, but price growth remains significantly behind core districts such as Hong Kong Island and Kai Tak.

Market activity is mainly supported by genuine owner-occupier demand, while investor appetite remains relatively weak.

2. Significant price polarisation

Quality properties along MTR lines have demonstrated stronger resilience.

Older properties located further from railway stations continue to record loss-making transactions, while some relatively new developments have fallen approximately 25%–30% from their historical highs.

3. Continued supply of distressed properties

Mortgagee sales and urgent-sale properties continue to enter the market.

This provides first-time buyers with more choices and considerable room for price negotiation.

4. Stable rental demand

Airport employees and cross-border workers are concentrated in two-bedroom units at The Vineyard and Tuen Mun Town Plaza.

Typical monthly rent for two-bedroom units is approximately:

HK$16,000–23,000

Estimated rental yields are approximately:

2.8%–3.3%

3.2 Primary Residential Market

Major projects on sale during the first half of the year included MORI and other developments.

• Entry-level one-bedroom units started at approximately HK$4.2 million, with saleable-area prices starting from around HK$11,100 per sq ft.

• Three-bedroom units were priced at HK$12 million and above.

• Developers adopted relatively conservative pricing strategies and offered promotions close to secondary-market prices to avoid weak sales caused by high asking prices.

• The main buyer group consisted of local first-time homebuyers, while the proportion of outside investors remained relatively low.

• New primary residential supply is expected to remain limited in the short term.

• Competition among new projects is therefore unlikely to be significant over the next 2–3 years, although purchasing power is unlikely to expand substantially.

Residential Sector Opportunities and Weaknesses

Advantages

• Low property prices compared with many other parts of Hong Kong

• Continued improvement in transportation

• Strong underlying owner-occupier demand

• Stable school networks

Risks

• Relatively far from Hong Kong’s traditional urban core

• Lack of high-end employment centres

• Property price growth tends to lag behind urban districts during bull markets

• The Tuen Mun South Extension has a relatively long implementation timeline

• Uncertainty remains over when the expected benefits of the infrastructure will be fully realised

4. Commercial Property Market

Shopping Malls + Street Shops

Tuen Mun’s commercial activity is concentrated in two major areas:

1. The core commercial district of Tuen Mun town centre

2. Community retail areas serving large residential estates

Gold Coast in the southern part of Tuen Mun is primarily focused on leisure-oriented retail.

4.1 Major Shopping Centres

Key Landmarks

• Tuen Mun Town Plaza

• V City, an MTR-connected flagship shopping centre in the district

Market Characteristics

• Occupancy rates remain high, with local residents forming the main customer base.

• Food and beverage, supermarkets and lifestyle services are the main supporting retail categories.

• Rents remain stable, with limited momentum for significant increases.

• Retail brands remain cautious about expansion.

• Very few new high-end luxury brands have entered the market.

• The overall positioning remains focused on community consumption.

4.2 Street Shops and Ground-Floor Shops in Residential Estates

First Half of 2026

• Ground-floor shops along major town-centre roads:
  HK$70–110 per sq ft per month

• Community shops within residential estates:
  HK$35–65 per sq ft per month

• Upper-floor commercial units:
  HK$18–30 per sq ft per month

Upper-floor units are mainly occupied by:

• Beauty businesses

• Tutoring centres

• Small offices

Market Characteristics

1. Primarily driven by local consumption

Consumer demand is mainly domestic, while tourist traffic is significantly lower than in Hong Kong Island and Tsim Sha Tsui.

Commercial shop investments are therefore more suitable for stable rental income than short-term capital appreciation.

2. Essential services remain resilient

Education, healthcare and essential retail demonstrate the strongest resilience.

Leisure and food-and-beverage businesses are more sensitive to fluctuations in consumer sentiment.

3. Limited transaction activity

Industrial and commercial shop transactions remain sporadic, while large whole-building transactions are uncommon.

A notable transaction during the first half of 2026 involved a four-storey commercial property on Lok Yee Street, Siu Lam, which was sold for HK$122 million.

The buyer was an educational institution purchasing the property for its own use, reflecting continued institutional owner-occupier demand.

5. Office Property Market Analysis

Key Market Characteristics

Tuen Mun does not have a Grade A office cluster.

The market is mainly dominated by:

• Grade B traditional commercial buildings

• Grade C traditional commercial buildings

• Revitalised industrial buildings such as One Vista

This makes Tuen Mun a relatively low-cost office market in the western New Territories.

5.1 Major Office Buildings

• Tuen Mun Central Square

• Park Lane Square

• Kin Wing Commercial Building
  (traditional commercial buildings in the town centre)

• One Vista Summit / One Vista Supreme
  Revitalised industrial buildings providing some of the district’s newest modern office space, with concentrations of cross-border e-commerce, trading and consulting companies.

5.2 Rental Market

First Half of 2026

• New revitalised industrial buildings, including One Vista:
  HK$17–28 per sq ft per month
  Occupancy rate close to 90%

• Traditional older commercial buildings:
  HK$12–22 per sq ft per month

• Small subdivided offices / Ginza Office:
  From approximately HK$3,300 per month

These smaller offices are suitable for:

• Micro-sized cross-border companies

• Insurance businesses

• Consulting studios

5.3 Tenant Structure and Market Trends

1. Main Tenant Group: Cross-Border Trade, E-Commerce and Logistics

Cross-border trading, e-commerce and logistics supply-chain companies represent the largest tenant group.

Benefiting from its proximity to Shenzhen Bay and the airport, Tuen Mun attracts many Hong Kong-registered micro and small businesses conducting business across Guangdong, Hong Kong and Macao.

This is also One Vista’s most distinctive target tenant group.

2. Community and Essential Services

Typical tenants include:

• Tutoring and education centres

• Chinese medicine and therapy services

• Beauty and fitness businesses

• Baking studios

These businesses are particularly concentrated in the semi-retail units of One Vista Supreme.

3. Professional Service Businesses

Typical tenants include:

• Insurance brokers

• Cross-border consultants

• Overseas immigration and identity advisers

• Small architectural design firms

This tenant profile is compatible with the ecosystem of cross-border investment promotion and financial-related businesses.

Key Characteristics

There are almost no large corporate headquarters or traditional financial institutions in this market.

Tenants are mainly small companies with approximately 5–15 employees, making the area a regional SME office market.

6. Overall Market Summary, Opportunities and Risks

6.1 Market Summary

Key Conclusions for the First Half of 2026

1. Residential

The owner-occupier base remains solid, while property prices remain among the lowest in Hong Kong.

However, structural divergence is significant:

• Quality properties along railway lines remain relatively resilient.

• Older properties in remote areas remain under pressure.

• Overall market performance depends heavily on the implementation of the Tuen Mun South Extension.

2. Commercial Shops

The commercial market is supported by community consumption, while rents remain stable.

Commercial shops are more suitable for long-term rental income rather than short-term speculation.

Performance depends heavily on maintaining a stable population base.

3. Offices

Demand is supported by micro and small businesses and cross-border companies in the western New Territories.

The market is dominated by Grade B offices and revitalised industrial buildings.

Tuen Mun serves as a regional office centre but is unable to compete directly with the office markets of Kowloon and Hong Kong Island.

4. Development Planning

Tuen Mun West is designated primarily for industrial use and is not expected to develop into a major new residential district.

Future value-growth areas are concentrated around:

• The southern coast of Tuen Mun

• Railway-connected areas of Tuen Mun town centre

6.2 Opportunities

1. Greater Bay Area Cross-Border Business

Continued activity in cross-border trade within the Greater Bay Area is expected to support office and rental demand in Tuen Mun.

2. Infrastructure Development

The Tuen Mun South Extension and Tuen Mun Bypass are expected to improve long-term transportation prospects.

3. Relatively Low Property Prices

Tuen Mun’s relatively low property prices make it an alternative area for:

• Hong Kong first-time homebuyers

• Long-term rental investors with limited budgets

4. Stable Employment Base

The airport and logistics industries continue to provide a stable employment population, helping to support the residential rental market.

7. One Vista Analysis

7.1 Basic Project Overview

One Vista

Address: 1–3 San Hop Lane, Tuen Mun
Developer: Rising Development
Completion: 2019

One Vista was developed under the government’s Industrial Building Revitalisation Scheme.

It is one of the newest modern commercial and industrial complexes in Tuen Mun town centre and consists of two buildings.

1. One Vista Summit

3 San Hop Lane – 27-storey main tower

• Positioned as standard office space

• Office floors from Levels 2–30

• Unit gross floor areas: 478–3,098 sq ft

• All units are equipped with private toilets as standard, which is a relatively uncommon feature in older industrial buildings

• Floor-to-floor height of approximately 3.3 metres

• Split-type air-conditioning

• 24-hour building access

2. One Vista Supreme

1 San Hop Lane – 10-storey secondary building

• Mixed-use format

• Small retail units on lower floors

• Offices on upper floors

• Semi-retail uses permitted

• Greater flexibility of use

7.2 Location and Transportation Advantages

1. MTR Accessibility

Approximately 3–6 minutes’ walk from Exit A of MTR Tuen Mun Station.

It is one of the relatively few modern revitalised commercial buildings located along the railway corridor in Tuen Mun.

2. Road and Cross-Border Connectivity

The surrounding road network provides direct access to:

• Tuen Mun Road

• Tuen Mun–Chek Lap Kok Link

Travel time to the airport and Hong Kong-Zhuhai-Macao Bridge is approximately 15–20 minutes.

Multiple cross-border bus routes also provide direct access to Shenzhen Bay Port.

3. Commercial Amenities

One Vista is located close to:

• Tuen Mun Town Plaza

• V City

The surrounding area provides comprehensive dining, retail and hotel amenities, giving One Vista an advantage over other clusters of older industrial buildings in Tuen Mun.

4. Comparison with Traditional Commercial Buildings

Compared with traditional Tuen Mun commercial buildings such as Tuen Mun Central Square and Park Lane Square, One Vista offers:

• Newer building age

• Modern facilities

• Flexible unit layouts

These characteristics make it a preferred office location for cross-border SMEs.

7.3 Rental and Sales Market

First Half of 2026

1) Rental Market

Rental Range

Gross floor area: HK$17–28 per sq ft per month

• Lower floors / smaller units: HK$17–22 per sq ft

• Standard offices on middle floors: HK$22–26 per sq ft

• High-floor units with views: HK$26–28 per sq ft

Market Indicators

• Overall average occupancy rate is close to 90%.

• Vacancy is significantly lower than that of older commercial and industrial buildings in Tuen Mun.

• Rental levels are higher than traditional older commercial buildings in Tuen Mun, which typically command around HK$12–22 per sq ft.

• However, rents remain significantly lower than Grade B office rents in Kowloon and Hong Kong Island, providing a strong cost advantage.

Indicative Rental Examples

• 490 sq ft small unit: HK$9,000–10,000 per month

• 780 sq ft standard office with two partitions: approximately HK$22,000 per month

2) Sales Transactions

First Half of 2026

• Transaction price: HK$9,000–9,900 per sq ft based on gross floor area

• Premium high-floor units with views are approaching the HK$10,000 per sq ft level.

• Mainstream entry-level total transaction prices: approximately HK$5–7 million

• Average rental yield for units sold with existing leases: approximately 3.0%–3.5%

This is higher than the estimated 2.8%–3.3% rental yield for residential properties in Tuen Mun.

7.4 Tenant Structure and Industry Characteristics

Strong Greater Bay Area Cross-Border Trend

Main Tenant Categories in the First Half of 2026

1. Cross-Border Trade, E-Commerce and Logistics Supply Chain

Largest tenant group

Benefiting from its proximity to Shenzhen Bay and the airport, One Vista attracts numerous Hong Kong-registered micro and small businesses conducting business across Guangdong, Hong Kong and Macao.

This represents the project’s most distinctive tenant group.

2. Community and Essential Services

Typical businesses include:

• Tutoring and education centres

• Chinese medicine and therapy services

• Beauty and fitness businesses

• Baking studios

These are particularly concentrated in the semi-retail units of One Vista Supreme.

3. Professional Services

Typical tenants include:

• Insurance brokers

• Cross-border consultants

• Overseas immigration and identity advisers

• Small architectural design companies

This tenant profile is aligned with the ecosystem of cross-border investment promotion and financial-related businesses.

Important Characteristics

There are almost no large corporate headquarters or traditional financial institutions.

Tenants are mainly small companies with approximately 5–15 employees.

As a result, One Vista is positioned primarily as a regional SME office hub.

7.5 One Vista’s Positioning in the Tuen Mun Office Market

Core Project Advantages

1. Modern Revitalised Office Cluster

One Vista represents a major modern revitalised office cluster in Tuen Mun, with facilities significantly ahead of many older commercial buildings in the district.

2. MTR and Cross-Border Connectivity

Its MTR accessibility and cross-border transportation advantages make it a benchmark property for absorbing the spillover of Greater Bay Area micro and small businesses into the western New Territories.

3. Flexible Unit Configuration

The project offers:

• A wide range of unit sizes

• Private toilets

• 24-hour access

• Flexible permitted uses

Potential uses include:

• Offices

• Studios

• Small training centres

4. Stable Rental Demand

Rental demand remains stable.

Liquidity is better than that of industrial buildings in more remote parts of Tuen Mun, while secondary-market units can generally be leased relatively quickly.

7.6 Conclusion

One Vista is a benchmark representative of Tuen Mun’s office market and reflects the key characteristics of the commercial and industrial property market in the western New Territories.

The project is supported by cross-border micro and small businesses within the Greater Bay Area and offers:

• Rental returns that are higher than residential properties

• A relatively moderate entry price

• Good transport connectivity

• Flexible office configurations

It is therefore suitable for:

• SMEs seeking premises for their own use

• Conservative investors seeking stable rental income

However, the asset is subject to constraints relating to its remaining land lease term.

It should therefore be positioned as a “stable rental-income asset” rather than an investment aimed at substantial long-term capital appreciation.

It is also an important indicator for assessing the broader Grade B and revitalised office market in Tuen Mun.

Disclaimer

This article is provided for market research and information purposes.

It covers Tuen Mun’s regional development plans, residential property market, commercial property market, office market and specific project analysis.

All data, figures and commentary are intended solely for industry exchange and discussion purposes.

Infrastructure implementation schedules, land-use planning, and property rental and sale prices may change at any time due to macroeconomic conditions, government policies and other external factors.

The public account and the author accept no legal liability for any gains or losses arising from transactions made by any person in reliance on the information contained in this article.