Hong Kong Retail Leasing

Housing Investment Consultancy
Retail Leasing

October 2018

The highly anticipated rally in the retail market is unlikely to fully materialize as landlords and retailers recalibrate expections for the fourth quarter.

Mainland brands, especially F&B brands, are gaining ground in Hong Kong and are targeting mid to high price points.

International sports brands are expanding rapidly to capitalise on increasingly active lifestyles.

The retail sales recovery is losing some momentum as retail sales growth in the first eight months decelerated to 12.2% YoY.

A record-breaking number of mainland tourist arrivals did not translate into stronger retail sales because of lower spending per capita and a change in spending patterns.

84,000 mainlanders travelled to Hong Kong via the new Guangzhou–Shenzhen–Hong Kong Express Rail Link over the first two days of the October Golden Week, benefitting Tung Chung MTR Line malls.

Shopping centre and street shop rents flattened as landlords and retailers adopted a much more cautious stance given current macro uncertainties.

 

Key contacts

Simon Smith

Simon Smith

Senior Director / Head of Research & Consultancy
Research & Consultancy

Two Exchange Square

+852 2842 4573

 

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