Savills forecasts core prime street shop rents to grow up to 5pc this year

Hong Kong's prime street shop rents are expected to remain broadly stable or grow mildly by up to 5 percent this year, as rental levels are approaching the bottom of the cycle, said Jack Tong, director of research and consultancy at Savills.

Tong noted that Hong Kong’s retail leasing market has experienced a substantial correction, with prime street shop rents in key districts falling about 76 percent from their peak and major shopping mall rents nearly halving.

Core prime street shop rents rose 1.1 percent quarter-on-quarter in the 2025 fourth quarter, despite sluggish economic growth and the outflow of local spending to the Mainland, Hong Kong's total retail sales value still reached HK$380.46 billion in 2025.

Barrie Chan, senior director of retail at Savills, highlighted a notable polarizing consumption pattern between old money and young riches, driving landlords to reposition underperforming spaces by introducing more young-riches shopping experiences, such as emerging sports and popular Mainland Chinese brands, to enhance interactivity and boost footfall within their malls.

Gloria Leung