Fresh concepts lift Hong Kong retail property as tourists and consumers return
Landlords betting on a diversified tenant mix – from pop-ups to ‘sportainment’ – to sustain growth in retail property market, analysts say
Unlike the city’s past peak rental levels, however, this time the tenant mix was more diversified, with retailers offering unique experiences and products that enhanced their appeal to shoppers, they said.
“We see structural shifts towards more experience-driven and diversified tenant mixes, rather than a full return to past peak rental levels,” said Kathy Lee, head of research and retail consultancy at Colliers. “While rents are forecast to grow modestly, a broad-based rebound to pre-Covid-19 levels is unlikely in the near term.”
In the first three months of the year, the city’s retail sales rose 12 per cent from a year earlier to about HK$106.3 billion (US$13.6 billion), according to the latest official data.
High street rents, on the other hand, were largely stable, with overall rental growth of 1.6 per cent year on year as leasing demand remained concentrated on well-located, mid-sized units, according to Colliers, which estimated as much as a 5 per cent rise in rents for shops over the year.