Modest Rise in Hong Kong Retail Rents But Sales Still Slow

Despite the challenges facing Hong Kong’s retail market, a steady increase in visitor numbers has led to a modest recovery in street-front shop rents in some districts.

Real estate service provider Cushman & Wakefield predicted rents for retail shops will see a slight increase in the second half of 2024, with a less-than-5% hike.

In the second quarter, the vacancy rate of street-front shops in the popular tourist center Tsim Sha Tsui district decreased by 1.2 percentage points to 10.6%, driven by higher tourist numbers. Meanwhile, vacancy rates in Central, Causeway Bay, and Mong Kok remained stable year-on-year at 7%, 2.6% and 11.1%, respectively, according to the Cushman & Wakefield report.