Hong Kong Retail Leasing

Housing Investment Consultancy
Retail Leasing

August 2018

The market seems to be showing clear signs of a turnaround with malls reporting brisk sales and the luxury segment showing a return to form.

Retail sales were up strongly by 13.4% over the first six months of the year with all market segments reporting healthy growth.

Mainland tourists are returning in larger numbers, particularly same-day visitors, with positive implications for convenience goods and malls in the New Territories/Fringe Kowloon.

Data from mall landlords showed buoyant growth in retail sales over the first quarter, including malls less dependent on PRC tourists.

After a flat 2017, rents in major shopping malls rose by 2.0% YoY over the second quarter while street shop rents followed suit with a 2.4% YoY increase.

Confidence among landlords and retailers is returning even if currency and trade issues could cool sentiment over Q3.

Looking ahead, an above-average 3.26 million sq ft of new prime mall supply is expected over 2018 and 2019, much of it due to come on stream in the New Territories/Fringe Kowloon.

 

Key contacts

Simon Smith

Simon Smith

Senior Director / Head of Research & Consultancy
Research & Consultancy

Two Exchange Square

+852 2842 4573

 

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