Who was the most active retail buyer in Hong Kong in 2024?

This company acquired a number of neighbourhood retail podiums.

In 2024, Knight Frank data suggest that retail leasing transactions in Hong Kong’s core districts are gradually increasing, particularly among Chinese food and beverage franchises, as well as medicine and cosmetics retailers. While the transaction volume is on the rise, rental performance remains inconsistent.

A recent notable deal, according to Knight Frank, involved a fivefloor duplex retail space at China Hong Kong Centre in Tsim Sha Tsui, covering over 14,000 sq ft, which was leased to the Chinese mobile brand Huawei for HK$800,000 per month (about HK$57 per sq ft). Canton Road, known for its luxury flagship stores, is now seeing a telecommunications company occupy a space at a relatively low rent, reflecting a cautious sentiment among luxury retailers.

Here’s more from Knight Frank:

On the investment side, CR Longdation emerged as the most active buyer in 2024, acquiring several neighbourhood retail podiums, including KF88, Alto Residences, and multiple retail podiums from the Housing Society. The retail shop investment market is expected to become more vibrant with potential rate cuts and easing mortgage rules. Current deals predominantly involve distressed properties and shops yielding over 6%.

The transformation of the retail landscape is increasingly unavoidable, driven by changing consumption patterns and spending habits of Mainland tourists. Coupled with an aging population and shifts in labour dynamics, the retail sector must adapt to this evolving business environment. While traditional retail practices encounter challenges, new opportunities are emerging for alternative players, including community services, health and wellness, sports entertainment, arts and culture, and various NGOs.

Although retail sales are projected to remain steady in 2025, many retailers in Hong Kong are adopting a cautious approach to expansion. Consequently, retail rents are expected to face continued pressure in the coming year.