Hong Kong prime retail rents to decline by 5-10% this year

Over 10m sq ft of new retail supply will be completed from 2026.

In a report, Savills forecasts prime street shop and prime shopping mall rents in Hong Kong to decline by 5-10% in 2024.

“The Hong Kong retail market will remain highly competitive in the coming years, with over 10 million square feet of new shopping malls scheduled for completion by 2026 and beyond,” the report said.

Here’s more from Savills:

The recent wave of retail and F&B closures is attributed to reduced local and visitor spending, as well as unsustainable business models of some operators reliant on pandemic-era subsidies. 

The Hong Kong government is implementing initiatives to revive the local retail sector, including expanding the IVS scheme and hosting major events to attract more tourists. However, the impact of these efforts will take time, and the retail market is expected to face ongoing challenges from structural shifts in local and visitor spending patterns, at least for the rest of 2024.