Hong Kong retail vacancy rate rises to 8% in Q3

Only Central saw a slight decline in vacancy.

According to a CBRE report, Hong Kong’s total retail sales in August rose by 3.8% year-on-year, the fourth consecutive month of year-on-year growth.

“Retail leasing volume strengthened on a q-o-q basis in Q3 2025 on the back of accelerating retail sales growth. Total retail sales in July and August combined rose by 2.8% y-o-y, the fastest increase since Q4 2023, thanks to stronger growth in visitor arrivals, which rose by 13.9% y-o-y over the same period,” the report added.

Here’s more from CBRE:

F&B groups remained active, with new requirements mainly coming from Chinese restaurants. Thanks to the rebound in clothing and footwear sales, mid-tier fashion brands also displayed stronger leasing demand.

Leasing from pharmacies softened after brisk activity in Q2 2025, while most other trades remained relatively inactive.

Much of the leasing activity this quarter occurred in properties outside of CBRE’s basket. Vacancy edged up by 0.9-ppt q-o-q to 8.0%, with only Central reporting a slight decrease in vacancy.

Higher vacancy rates meant rents edged up by 0.5% q-o-q, slightly slower than the 1.0% growth seen in Q2 2025. This brought y-t-d growth to 2.4%.

Lawrence Wan, Senior Director, Head of Retail Leasing, CBRE Hong Kong: “Retail leasing momentum accelerated in Q3 2025, as supported by a rebound in retail sales and a steady increase in visitor arrivals. F&B operators remained active, with Chinese F&B groups leading new leasing demand. Mid-tier fashion brands also demonstrated strong interest, reflecting a broader improvement in retailer sentiment. Moving forward, leasing demand is expected to remain robust in core districts, particularly along Tier I high streets. Attractive rental levels will continue to attract overseas and mainland Chinese brands, as well as F&B groups, to Hong Kong. Meanwhile, experiential and wellness-focused concepts are gaining traction and expanding across various districts.”