Retail rents slip in Tsim Sha Tsui, Causway Bay

The boost from the mega event economy is weaker than expected, with overall high-street retail rents in Tsim Sha Tsui and Causeway Bay falling slightly in the first quarter, according to a report by Cushman & Wakefield.

Data from the realtor showed that high-street rents in Tsim Sha Tsui dropped 2.3 percent from a quarter ago to HK$934 per square foot during the first three months, while those in Causeway Bay dipped 1 percent to HK$844 per sq ft, though they are higher by more than 3 percent compared to a year ago.

The rents of shops in Central stayed unchanged at HK$429 per sq ft, while Mong Kok recorded a 0.5 percent gain to HK$363 per sq ft.

Key district vacancy rates in Kowloon remained stable with Tsim Sha Tsui and Mong Kok at 9.4 percent and 8.4 percent, respectively. Causeway Bay was the only core retail district to post greater vacancy in the first quarter, jumping to 5.3 percent from 0 in the fourth quarter of 2024. The overall vacancy rate in Central dropped slightly quarter-over-quarter from 8.6 percent to 7.1 percent.

Cushman & Wakefield cited the continued structural changes in the consumption preferences of visitors and locals. The city’s overall retail sales for the January to February 2025 period shrank by 7.8 percent from a year ago.

Meanwhile, the demand for smaller-sized residential units has increased, following the relaxation of the maximum property value chargeable at a HK$100 stamp duty level to HK$4 million at the end of February.

The total residential unit transaction number for the first quarter climbed 24 percent year-on-year to 12,200 units, the realtor said.

STAFF REPORTER