Golden Week lifts Hong Kong shop leasing outlook
AM730 · 2 SOURCESabout 4 hours ago2 MIN
Summary
Hong Kong recorded about 1.6 million visitor arrivals during the National Day Golden Week, including more than 1.416 million mainland visitors, up about 9.4% from a year earlier. Market data cited by Centaline (Commercial) showed 302 shop leasing deals in September, with transaction value at about HK$29.7 million, up about 10.95% year on year despite slight month-on-month declines. Vacancy trends in core districts were mixed: Wan Chai improved, Central and Causeway Bay edged up, Mong Kok eased slightly, and Tsim Sha Tsui rose marginally. Centaline expects shop leasing activity in October to remain on a steady upward path as retailers prepare for the year-end consumption season
Key Points
- September shop leasing recorded about 302 deals worth roughly HK$29.7 million, down 4.43% and 1.52% month on month respectively.
- On a yearly basis, September leasing volume rose 0.67% and transaction value increased 10.95%, while leased floor area fell 15.54% to about 348,000 square feet.
- The headline deal was Shop G07, G/F, Silvercord, 30 Canton Road, Tsim Sha Tsui, a 3,517-square-foot unit rented for about HK$800,000 monthly
- Tenant Lung Fung Group expanded again in Tsim Sha Tsui, while Watsons also leased Shop A, G/F, Jordan Place on Nathan Road for about HK$647,000 a month
- September vacancy rates were 5.95% in Wan Chai, 7.32% in Central, 6.27% in Causeway Bay, 7.39% in Tsim Sha Tsui and 9.03% in Mong Kok.
Why It Matters
For Hong Kong retailers and landlords, the latest figures suggest tourist spending is still feeding demand, but in a more selective way than before, favouring pharmacies and daily-needs operators over luxury-focused tenants. That shift helps explain why leasing value is rising even as total leased area shrinks and vacancy performance differs sharply between districts.