Hong Kong Retail

After a long bull run, street shop rents are finally softening while rents in prime malls continue their upward  trajectory.

February 2015

 
  • Retail sales in Hong Kong weakened towards year-end 2014, and recorded their first full-year decline since 2003. 
  • Sales of luxury products, including popular tourist items such as watches, jewellery, electrical goods and photographic equipment, have continued to cool.
  • The strengthening of the U.S. dollar and the weakening of the euro combined to make Hong Kong less appealing to affluent Chinese visitors as a luxury shopping destination.
  • Overall rents for prime street shops continued to fall by 3.1% quarter-on-quarter (QoQ) in Q4/2014.
  • Looking forward, prime street shop rents are expected to decline by 10% to 15% in 2015. In contrast, major shopping centre base rents are expected to see further growth in the range of 5% to 10% over the same period.
 
 

Key contacts

Simon Smith

Simon Smith

Senior Director
Research & Consultancy

Two Exchange Square

+852 2842 4573

 

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