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Hong Kong Retail Leasing - Q1 2026

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Hong Kong’s Retail Leasing Market Shows a ‘Selective Recovery’ in the First Quarter of 2026

  • Prime streets shop outperform malls: TST (+3.2%) and Mong Kok (+3.0%) led Q1 rent recovery; mall rents up just 0.4% as mass consumption stays weak.
  • Banks, Securities Firm & Mainland brands drive leasing: HSBC expanded in Causeway Bay; Standard Chartered expanded in Central. Mainland brands setting up flagship stores.
  • Local spending shifts online & overseas: Outbound travel +12.3% in 2025; online retail +12.8%. Long-standing restaurant Han Teng Court closed.
  • Experience-led economy takes off: Stores become brand destinations. Music venues and candlelight concerts turn social media buzz into foot traffic.

The recovery of Hong Kong’s retail market remains uneven. Prime streets are gradually stabilising, supported by new demand from the financial sector and mainland brands, while neighbourhood malls continue to face significant pressure from outbound spending and the rise of e-commerce. Looking ahead to the second half of 2026, this divergence is expected to dominate market performance, with rents in non-destination retail projects and weaker local malls likely to remain under downward pressure.

Jack Tong, Savills Research & Consultancy
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