Savills

Publication

Hong Kong Retail Leasing - Jul 2024

Article

Contacts & Related Research

 

Hong Kong Retail Market Faces Structural Shifts Beyond the Surge in Northbound Travel

  • Northbound travel has surged, with monthly trips reaching an average of 7.2 million per month in 1H 2024, up from 3.9 million in 1H 2023.
  • The surge in northbound consumption is not the sole reason for the retail market's decline.
  • Structural shifts like high interest rates and the exodus of young and middle-class talent have further impacted local retail spending.
  • Savills forecasts a 5% - 10% rental decrease in both prime street shops and prime shopping malls in 2024.

Since the latter half of 2023, northbound travel has experienced a significant uptick. While a considerable portion of potential retail spending has been redirected to southern China, there are additional structural shifts occurring within the local retail market that underlie the recent downturn.

Jack Tong, Savills Research & Consultancy
Read more