Hong Kong high-street rents up 1.2% in Q3

Tsim Sha Tsui led the rental growth.

According to a Colliers report, retail sales in Hong Kong for January to August were down 1.9% YoY, indicating a subdued start to the year. However, the market is showing signs of stabilisation, with four consecutive months of year-on-year growth.

Here’s more from Colliers:

Local brands continued to relocate and expand, leveraging adjusted rents and a rebound in demand driven by finance and tourism. Prime malls also welcomed first-time entries of international brands, including LÄDERACH at K11 Musea, and Tempura Nagaoka at Lee Garden.

High-street rents edged up 1.2% QoQ overall, led by Tsim Sha Tsui (1.7%) and Central (1.3%), reflecting improving sentiment in core retail districts.

Outlook

Prime streets in core districts will likely remain the most sought-after retail locations, supported by strong leasing demand. F&B operators will continue to be a key driver, with Korean restaurants emerging as a notable growth segment.

In addition, niche trends such as brands built around popular characters and cultural icons are gaining traction. These brands often adopt immersive and gamified shopping concepts to deliver engaging experiences.

Meanwhile, government initiatives to promote niche tourism segments, such as the yacht economy, horse racing, and cruise tourism, are likely to draw high-spending visitors, supporting growth across retail, F&B, and hospitality sectors.