Hong Kong retail rents to drop by up to 10% this year

And vacancy rates of high-street shops declined to 9.7%.

In a report, JLL revealed that given the rising unemployment rate and continued store closures driven by structural outlet rationalisation and muted improvement in consumption demand, High Street shops and Prime Shopping centre vacancy rates are expected to hold steady at a high level.

“High Street shops and Prime Shopping centres rents are forecast to drop by 5-10% in 2025,” the report said.

Here’s more from JLL:

Total retail sales growth marginally accelerated to 2.8% y-o-y in July-August, compared to the 0.3% rise in Q2 2025. Jewellery, watches, and valuable gifts category observed a significant growth from 0.8% in Q2 2025 to 12.8% in July-August.

The leasing market witnessed a broadening of demand drivers in Q3 2025, with the education and fitness sectors becoming increasingly active participants.

Prime shopping centres vacancy rates edges higher

SHKP’s Cullinan Sky (220,000 sq ft) in Kai Tak and Scramble Hill (500,000 sq ft) in Kwun Tong are poised to open in Q4 2025.

High Street shops vacancy rates declined to 9.7% by Q3 2025, down from 10.7% in the preceding quarter. Vacancy rates of Prime Shopping centres, however, continued to increase from 9.7% in Q2 2025 to 9.9% in Q3 2025.

Investment activity saw a modest uptick in Q3 2025, supported by partial return of long-term investors

Hong Kong Ferry Ltd acquired multiple ground-floor shops (Portion A) at Tai Hung Fai (Tsuen Wan) Centre for HKD 260.0 million (HKD 20,440 per sq ft), translating to an estimated initial yield of 5.6%.

End-user participation in the investment market remained resilient. Notably, the Hong Kong SAR Government acquired the 1/F of Sablier in Tai Kok Tsui for HKD 96.0 million (HKD 12,000 per sq ft), with the asset earmarked for government, institutional, or community use.