Prime street shop rents climb across Hong Kong's key retail hubs

Rents rose 2.7% in Q1, led by Tsim Sha Tsui.

Hong Kong's retail leasing market entered a more constructive phase in the first quarter of 2026, although the recovery remains selective rather than broad-based, according to Savills.

The property consultancy reported that prime street shop rents rose 2.7% quarter-on-quarter in Q1 2026, led by Tsim Sha Tsui with growth of 3.2%. Mong Kok rents increased 3.0%, followed by Central at 2.5% and Causeway Bay at 2.0%. Major shopping centre rents also recorded gains, rising 0.4% overall during the quarter.

Savills said the figures indicate firmer occupier sentiment, but leasing activity remains concentrated in the city's most productive retail districts and assets.

The consultancy noted that retailers continue to expand cautiously, placing greater emphasis on visibility, customer fit and operational efficiency rather than pursuing network expansion for its own sake.

Looking ahead, Savills expects market polarisation to become more pronounced through the remainder of 2026. The firm forecasts around 5% rental growth for prime street shops this year, with Central, Causeway Bay and Tsim Sha Tsui expected to lead the market. Prime shopping centres are also projected to achieve rental growth of approximately 3% to 5%, although performance will depend increasingly on positioning, tenant curation and experiential appeal.