Hong Kong high-street rents up 1.6% in Q1

Retail unit sizes in the 1,500 to 2,000 sq ft range are expected to remain most in demand.

Hong Kong’s retail market maintained strong momentum at the start of 2026, with sales rising 11.8% year-on-year in the first two months, marking the tenth consecutive month of expansion, according to Colliers.

Growth was led by a sharp rebound in electronics and consumer durable goods, which surged 32.4% year-on-year, supported by improving residential transaction activity. The jewellery and watches segment also posted strong gains, rising 27.8% amid elevated gold prices, underscoring continued strength in higher-value discretionary spending.

On the leasing side, activity in Q1 remained seasonally subdued following the extended holiday period, broadly in line with typical early-year patterns. High-street rents were largely stable, with overall rental growth recorded at 1.6% year-on-year.

Colliers noted that despite solid sales performance, expansion among retailers remains measured. Goldsmiths continue to prioritise securing prime locations over aggressive network growth, reflecting a more disciplined strategy. Financial institutions remain active occupiers, while souvenir and tourism-oriented retailers, including specialty confectionery and gift operators, are selectively expanding to capture improving visitor demand.

Retail unit sizes in the 1,500 to 2,000 sq ft range are expected to remain most in demand, supporting ongoing leasing activity in well-located spaces.

Looking ahead, Colliers highlighted a potential structural shift in tenant mix following the forthcoming Food Business (Amendment) Regulation 2026, expected to take effect in May. The regulation will allow eligible licensed restaurants to apply for dog-admission permission, which landlords of retail and mixed-use schemes may use to enhance experiential offerings and develop more pet-friendly environments within their assets.